One of the leading private airlines in Nigeria, Vivajets‘ has re-emphasized the urgent need for expansion in Nigeria’s aviation sector to enhance accessibility and affordability for air travelers.
Chief executive of the airline,Chukwuerika Achum spotlight this as part of his insights during a conversation with CNBC Africa, shedding light on potential policy reforms to elevate Nigeria’s aviation sector in 2024.
Its interesting to note that despite the International Air Transport Association estimating a significant economic value of $63 billion for the aviation industry in Africa, Nigeria’s contribution remains at $1.7 billion. This constitutes 0.4% of the GDP and offering 241,000 jobs, compared to South Africa’s aviation sector, which contributes 3.5% to GDP with a value of $12 billion.
In other words, Nigeria’s aviation industry is yet to fully tap into its potential given its substantial population and economic dynamism.
Addressing the challenges faced in 2023, including increased demand, airline closures, and macroeconomic issues, Achum underscores the necessity for local airlines to swiftly expand their capacity. Insufficient capacity contributes to elevated ticket prices, hindering consumer satisfaction.
Achum says:
“2023 was an astronomical year for aviation in terms of numbers. We are seeing numbers far above pre-pandemic levels. But we now have a huge inflationary pressure. Nevertheless, forecast shows we will go higher in 2024.”
While recognizing structural reforms that enhance safety, such as new entry requirements for the domestic airline market and adjustments in capitalization and service fees, Achum remains vigilant about the sector’s future. Despite 2023 being a year of recovery from the impacts of COVID-19, challenges like inflationary pressures persist. However, the industry anticipates continued growth in 2024.
Recall that Vivajets is a business aviation firm offering diverse services, including aircraft charter, management, fractional ownership, sales, and acquisition and has shown its intention to steer Nigeria’s aviation sector towards a prosperous and consumer-friendly future.
Culled in by Lois Agada
