The Chief Executive Officer of United Nigeria Airlines, Obiora Okonkwo, has issued a stark warning about the unstable state of Nigeria’s aviation industry, describing it as being on “life support.”
Speaking in an interview with ARISE NEWS on Friday, Okonkwo detailed the severe challenges facing the sector, including soaring Jet A1 fuel prices, rising interest rates, and persistent forex shortages, all of which have created a volatile operating environment.
He stated, “I started saying two years ago that the industry is on support machine, on oxygen. There are sectors that are more vulnerable to any volatile situation in the economy or in a country. Aviation is one of them. By the time I started crying out about the dangers of potential hike in Jet A1 fuel, the potential hike in interest rate and then also, the forex challenges, it had not started affecting many sectors, so I was like the lone voice in the wilderness.”
According to Okonkwo, the industry’s survival has hinged on the resilience and patriotism of operators, particularly the new breed of aviation operators, singling out Air Peace as an example of the determination keeping the industry afloat.
“The only surviving issue is that the operators today, the new breed operators, thanks to great people like Air Peace, the level of resilience and patriotism, that is what is keeping us here. If we have to weigh our engagements and operations based on our profit and loss, we would have long closed shop.”
He added that the sector has not received meaningful support from the government. “We’ve been losing a lot of money and the unfortunate thing is we don’t even see any help coming from any side because nobody is engaging us. So, it is a fact, it is true, it is only resilience, patriotism and commitment to our contribution to national development and building that is still keeping us flying. Nevertheless, there is elasticity of that resilience. There is a limitation to which it can go.”
Okonkwo also made it clear that his concerns extend beyond the financial strain on operators, highlighting that the industry now faces the threat of industrial action by aviation workers’ unions, scheduled for August 21st. The dispute centres on the Aviation Ministry’s practice of taking 50% of Internally Generated Revenue (IGR) from source, a policy that has been a point of contention within the industry.
While Minister of Aviation and Aerospace Development, Festus Keyamo, has called for peace and promised engagement, Okonkwo suggests that these verbal assurances may not be sufficient to avert the looming strike. “The minister obviously had pleaded. That’s a good step. He’s ready to talk with them, but they should meet that pleading with some specific actions,” he stated.
The airline CEO further highlighted the unsustainable nature of the current revenue model, pointing out that the Nigerian Civil Aviation Authority (NCAA) is one of the largest contributors to government revenue, a situation he claims is unprecedented globally. “Government shouldn’t be going to NCAA to collect money they collect from the operators,” he argued.
Okonkwo therefore proposed a solution that involves reducing certain charges and allowing more funds to remain within aviation agencies. He noted the need for these funds to be carefully monitored and directed towards meaningful infrastructure improvements rather than superficial spending.
“Government should match their pleading with action,” Okonkwo urged. He warned that without concrete steps to address the unions’ concerns, the industry might face disruptive action next week, an outcome he stressed nobody wants to see.
Melissa Enoch
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