‘Tax holidays, forex availability’ — FG speaks on plans for aviation sector

Festus Keyamo, minister of aviation and aerospace development, says the federal government is ready to make Nigeria the aviation hub of Africa.

Keyamo spoke on Wednesday at the seventh edition of the Aviation Africa Summit and Exhibition 2023 in Abuja.

The minister said the current administration is ready to achieve the feat by tackling challenges in the aviation industry to attract foreign investors.

“The government is already looking at the Aircraft Leasing Company, aircraft maintenance organisation, forex availability and tax holidays to improve the aviation business in Nigeria,” he said.

“This includes upgrading of the Cat III landing system, at major airports, construction of the second runway in Abuja, airport improvement programme through concession and government willingness to partner with companies to turn major airports into aerotropolis.

“The government welcomes major players in aircraft leasing and head lessors to invest in Nigeria airlines to provide state of the art aircraft.”

Keyamo said the government would ensure the enforcement of contract agreements and the rights of investors.

He said a maintenance, repair and overhaul (MRO) facility is another critical component that could make the Nigerian aviation industry a hub on the continent.

“With the shortage of qualified engineers, the current administration is willing to provide all the necessary support for the establishment of a world class MRO and training organisation,” he said.

“The current administration is aware that one of the setbacks entrepreneurs have suffered in Nigeria in recent years is the fluctuation of foreign exchange and its availability.

“This administration is committed to ensuring that forex is readily available to entrepreneurs and I have directed that the Central Bank of Nigeria (CBN) holds quarterly reconciliation meetings with a view to resolve this issue.”

The minister said steps would be taken to build a “transparent, stable and predictable investment climate, as well as including aviation in the continent’s national development plans”.

“I wish to reiterate that my administration will continue to sustain the support being given to the industry,” he said.

“I firmly believe that as key players and decision makers, this summit will provide the required atmosphere for you to discuss, and identify recovery strategies that would attract private investors to support the funding of infrastructure projects.

“Nigeria is honoured to have these distinguished captains of aviation industry and industry stakeholders, from all over the world who are participating in this event.”

Keyamo said air transport remains an essential component of the global transportation system, adding that it is a crucial driver of economic, social and cultural development.