CEM REPORT, AVIATION | The aviation sector might just be set to soar to new heights under its present leadership led by Festus Keyamo. From relocating the Federal Airports Authority of Nigeria (FAAN) headquarters (HQ) to Lagos for efficiency to unveiling a ₦40 billion investment fund and a master plan for an African aviation hub, Nigeria might just be on track to transform the industry.
The winds of change are blowing through Nigeria’s aviation sector, one of the most significant announcements is the planned relocation of the Federal Airports Authority of Nigeria (FAAN) headquarters from Abuja to Lagos. This strategic move, driven by operational efficiency and cost savings, has sparked debate but garnered support and criticism from many industry insiders.
Speaking yesterday on Channels Politics Today, Keyamo highlights the illogicality of the current setup, where over 100 FAAN staff operate in Lagos while a handful, mainly top directors, reside in Abuja. This geographical disconnect reportedly costs the agency nearly ₦450 million annually on tickets alone. “N450 million on tickets alone? I shouted,” the minister exclaimed, emphasizing the absurdity of the situation.
The relocation is not just about saving money; it’s about boosting efficiency. With decision-makers closer to the heart of operations, FAAN’s responsiveness and agility are expected to improve significantly. As Keyamo aptly states, “the headquarters of an organisation doesn’t necessarily mean the largest building or place with the highest number of staff. It’s, rather, where the decision makers sit, and they are all in Lagos.”
Beyond the HQ shuffle, Keyamo has unveiled an ambitious roadmap for the sector. A ₦40 billion aviation fund, established by the President Bola Tinubu administration, will be used to upgrade navigational equipment and infrastructure, bringing Nigeria closer to its goal of becoming the aviation hub of Africa. A technical committee will be formed to draw up a comprehensive master plan, attracting foreign and local investors with a clear vision for the future.
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Keyamo is also tackling legal hurdles and outdated concessionary agreements that hinder progress. He emphasizes, “No court matter or concessionary agreement can hold me down. I will not allow any… to hold the progress of the nation down.” This commitment to transparency and accountability is a welcome change for an industry often plagued by bureaucratic red tape.
Innovation is also on the agenda. Partnerships with insurance companies are being explored to address the perennial issue of flight delays and cancellations. Airlines may soon be required to offer rebates as compensation, while a list of chronic offenders will be compiled for further action.
Keyamo Speaks on National Carrier
The national carrier, a long-held dream for Nigeria, will not be a mere rebranding of existing airlines. Keyamo assures while avoiding comments on the past national carrier debacle due to ongoing investigations.
Keyamo reiterated the government’s commitment to establishing a new one. He stressed that no existing local airline will be adopted, and the focus is on securing a better deal this time around.
“We will establish a proper national carrier,” seeking a better deal this time around, free from the shadows of past failures.
Nigeria’s aviation sector is poised for takeoff. The FAAN HQ relocation, N40bn investment fund, master plan, legal reforms, and innovative solutions paint a picture of a future where Nigerian skies are efficient, accessible, and globally competitive. The only question is, how achievable is this vision within the tenure of this administration? It is no news that Nigeria suffers from acute implementation syndrome, our plans have always been good but our implementation strategy has forever eluded us.
While we’re hopeful for a manifestation of the Keyamo vision, we can also cross our fingers that we won’t need new loans to achieve this.
