Allen Onyema, the Chairman of Air Peace, laid bare the challenges faced by the airline industry in Nigeria.
Among the revelations, Onyema disclosed that Air Peace expended an astonishing ₦78 billion naira on maintenance in 2022, and shockingly, the bulk of these funds flowed to foreign countries.
Onyema’s address delivered at the Annual Conference of the Nigerian Bar Association on August 28, 2023, shed light on the pressing issues that have plagued Nigeria’s aviation sector for years.
The chairman highlighted the critical need for government support to foster the growth of indigenous airlines and ensure the development of a thriving aviation industry.
“The airline industry in Nigeria is facing unprecedented challenges,” Onyema stated.
“While we are committed to providing safe and efficient air travel, the exorbitant costs associated with maintenance are crippling us. A significant portion of these expenses is sent abroad, which ultimately weakens our economy.”
Onyema explained that Nigerian airlines have the capacity and potential to compete on the global stage but face considerable obstacles.
He pinpointed the lack of truthful government support and an unfriendly business environment as major roadblocks to the industry’s growth.
One of the most striking revelations was Air Peace’s struggle to secure land at Lagos Airport for a maintenance hangar. Despite paying over 100 million naira to the Federal Airports Authority of Nigeria (FAAN) in 2015, the airline has yet to receive the land, eight years later.
This delay has hindered the development of a crucial maintenance facility, which could have not only saved substantial funds but also attracted foreign investments to Nigeria.
Onyema called for immediate government intervention to rectify these issues.
“We are not asking for preferential treatment,” he explained. “We are simply seeking a level playing field and the opportunity to contribute to Nigeria’s economic growth.”
The Air Peace chairman also raised concerns about the burdens placed on local investors. He pointed to statutory bottlenecks and excessive taxation, which he believes stifle the growth of indigenous businesses.
“Local investors are providing jobs for our populace and driving economic development,” Onyema stressed. “They should be encouraged, not hindered.”