China and the Nigerian aviation sector

Take the aviation sector. Every regular user of Nigerian airports know that these facilities, especially the major ones, have witnessed undeniable infrastructural transformation in the last one year, courtesy of the Airport Remodelling Project, (ARP), a departure from a period when the aviation landscape was dotted with abandoned and decaying infrastructure that dented the country’s […]

Take the aviation sector. Every regular user of Nigerian airports know that these facilities, especially the major ones, have witnessed undeniable infrastructural transformation in the last one year, courtesy of the Airport Remodelling Project, (ARP), a departure from a period when the aviation landscape was dotted with abandoned and decaying infrastructure that dented the country’s public image in no small way.
The ARP is a major component of the Aviation Sector Master Plan, and is aimed to transform the aviation industry into an efficient, profitable, self-sustaining, effective and a preferred mode of transportation.  One significant feature of the plan is the development of perishable cargo infrastructural facilities in designated airports and the development of airport cities, otherwise known as aerotropolis, designed to transform airports into major employment, shopping, leisure and trading destinations.
The signing of a memorandum of understanding between Nigeria and China during Jonathan’s trip marked a major milestone in the Nigerian aviation industry because it has opened up the industry in particular and Nigeria as a whole, to the enormous economic opportunities that China provides today. For example, economists have determined that, in the next five years, Chinese overseas investments would reach US$500 billion while its imports would exceed US$100 trillion. It is also envisaged that within this same period, the number of Chinese outbound tourists would exceed 400 million. All these translate to huge business potential that Nigeria and even developed countries cannot afford to ignore.
Today, airports are no longer mere departure and arrival points for aviation. They have become big businesses globally, actively driving the development of air transport, which is a veritable vehicle for rapid industrial and economic growth. Apart from providing critical capacity for current demand and future air transport growth, airports are major engines for socio-economic impetus to the regions and countries they serve. They are also symbols of national pride and prestige, when properly managed.
With a population of over 160 million, Nigeria has an enormous market for aviation, even at the global level. Added to its substantial natural resources, rich tourism potential and strategic geographical location, the country could easily have become a major hub in the African air transport region but this dream had been difficult to actualise due to the underutilisation of our airports and the absence of an enabling environment in the aviation industry.
Since 2011, there have been significant increases in passenger, aircraft and cargo movements thanks to the transformation push in the sector championed by the minister of aviation, Princess Stella Oduah. Records show that an average of 122.700 tonnes of cargo have been transported by air per annum since then, while passenger traffic at all our airport grew to 14.9 million in 2012. Total revenue generated from air ticket sales in the country increased from N225 billion in 2011 to N232.5 billion in 2013 while the total number of people employed in the country’s aviation sector increased from 60, 000 in 2011 to 85,000 in 2012.
Since the commencement of the ARP, five terminals in Lagos (Domestic Terminal 1), Abuja, (General Aviation Terminal), Benin, Kano (International Terminal) and Enugu have been commissioned while the remaining terminals in the country are at various stages of completion, including the international terminal at MMA. On May 18, 2013, President Jonathan laid the foundation for the construction of an ultra-modern terminal at the Akanu Ibiam International Airport, Enugu, on the same day that he commissioned the remodelled terminal there, as a prelude to the commencement of international flights from the airport. 13 airports in different geopolitical zones of the country have already been designated as perishable cargo airports, to facilitate perishable cargo export from different agricultural zones in the country. This policy is expected to reduce unemployment and stem rural-urban migration, among other socio-economic benefits.
The federal government’s intervention in development of airport infrastructure is aimed at making Nigerian airports more attractive for meaningful local and foreign investments. South Africa blazed this trail for such government intervention in 1994, to good effect, and was followed shortly by Egypt, Morocco, Tunisia, Ethiopia and Mozambique. Nigeria is among the countries in Africa that joined the bandwagon much later and the recent China deals will strengthen Nigeria’s position to be the hub of the aviation activities in the sub-region.
Dati, General Manager, FAAN, coordinates corporate communications of aviation parastatals.