Experts list FX squeeze, 40% TSA deduction, poor financing as blights crippling aviation sector – The Sun Nigeria

From Uche Usim, Abuja

Aviation experts and other relevant stakeholders rose from the second edition of the FAAN-National Aviation Conference (FNAC2) with a list of suffocating challenges that must be immediately tackled if the industry is to breathe and compete globally.

Their views were captured in a communique issued at the end of the event that attracted local and offshore players.

According to them, the four critical issues to be addressed for the industry to be performance-driven are: 40% Treasury Single Account (TSA) deductions by the Federal Government, lack of access to foreign exchange at official rate, poor access to financing, and clogged procedures in Ease of Doing Business.

Also listed is the scathing multiple taxation and fees by different government agencies, which the conference insisted should be brought under a ‘single window’ to provide faster clearance.

To address the aforementioned challenges, the conference noted that a Stakeholder Committee be set-up with a mandate to engage both the Presidency and the National Assembly to address all the critical issues in the industry.

“There is the need to stir-up stakeholders’ confidence by embracing the culture of transparency, accountability, openness, etc. and incorporation of Standards and Recommended Practices (SARPs) for system improvement.

“The Central Bank, Commercial Banks and other financial institutions should design special financing portfolios to meet the peculiar needs of the aviation facilities, equipment, and financing.

“The financial institutions should be invited to the next edition of FNAC for proper understanding of the financing requirements of the aviation industry.

“The Airports are facing critical facility challenges and there is the need for massive expansion which can be achieved if the revenue of the Authority is not subject to deductions in line with ICAO standards and provisions of FAAN Act, 2022”, the communique read in part.

The conference also called on the Nigeria Civil Aviation Authority (NCAA) to collaborate with other industry stakeholders and government agencies to achieve a 50% carbon emission reduction by 2060.

Experts equally tasked airlines in Nigeria to invest and key into the satellite-based navigation systems already provided by the Nigerian Airspace Management Agency (NAMA) to reduce flight time and carbon emissions.

In the aviation cargo sub-sector, the experts and stakeholders fingered multiplicity of government agencies with oversight functions focusing on narrow sub-sectorial revenue generation as a major cause of high prices of commodities.

This, they said, makes Nigerian commodities uncompetitive in pricing when compared to goods from other countries.

They called for legislation to harmonize the mandate of the agencies.

The conference also noted that data sharing among the agencies should be promoted and data should be obtained from one data repository for integrity and credibility.

“Stakeholders’ adherence to Standard and Recommended Practices (SARPs), Standards of Operations (SOP) and Policies are important to the achievement of a sustainable Aviation industry”, the communique added.