The deregulation of the aviation industry by the Federal Government in 1980 paved way for the establishment of many airlines. The development ended the dominating power of Nigeria Airways at the time, after which private airlines such as Okada, Gas, Aero-contractors, as well as others, started their operations for airline carriers.
In the 1980s many operators and businessmen launched dozens of new airlines, most of which failed. A good example is Harka and Hacco Airlines. As a result, existing carriers intensified competition by expanding into markets that they had not served previously. Numerous mergers occurred later as carriers attempted to gain a greater share of the market and expand quickly.
As of today, there are about 10 major commercial airlines operating in the country, including Air Peace, Azman Air, Arik Air, Aero Contractors, Dana Air, Max Air, United Nigeria Airlines, Green Africa Airways, Overland Airways, Value Jet, etc. There are, however, others operating charter, cargo hajj, etc.
The emergence of these new domestic airlines in the country, from all indications is already weighing on the workload of the Nigeria Civil Aviation Authority (NCAA) in terms of its regulatory functions.
This was confirmed by the Director-General of Civil Aviation in Nigeria, Capt Musa Nuhu.
According to Capt Nuhu, the emergence of new airlines in the country and the route expansion programmes of existing operators have increased the cost of surveillance progranmmes and oversight responsibilities of the agency.
Speaking as a Special Guest of Honour at the opening ceremony of the League of Airports & Aviation Correspondents (LAAC) Training Programme held at International Aviation College (IAC), Ilorin, Nuhu, who was represented at the event by his Director of Human Resources, Mr Wakili Adamu, said, “There is no doubt that there is an increased confidence in the sector as new airlines are coming on-board and existing operators are expanding their routes. Expectedly, our costs of surveillance programme and other oversight responsibilities as the regulator of the industry have increased correspondently.”
“We, at the Nigeria Civil Aviation Authority, consider training (including initial, on-the-job and recurrent training) as key component of aviation development in Nigeria. Infact, training and retraining, can be likened to a capital project as it is critical to our operations as the apex regulatory Authority for Civil Aviation. The Authority’s personnel are exposed to appropriate trainings all over the world to enhance and maintain their skills”.
The increased the cost of surveillance programmes of the NCAA is also coming at a time aviation agencies are struggling to raise enough money to meet up with a revenue target of 40 percent recently set by the Federal Government.
Recently towards the end last year in October, the Federal government instituted compulsory contributions of revenue-generating agencies to the Federation Account which were increased from 25 per cent to 40 per cent.
The Federal Government began implementing the new regime in mid-October. With this, 40 per cent of internally generated revenues (IGRs) by all government agencies are now meant for the Federal Government to execute projects.
There are six agencies in the Ministry of Aviation, out of which four are affected by the new policy of the federal government. The affected agencies are the Federal Airports Authority of Nigeria (FAAN), Nigerian Airspace Management Agency (NAMA), Nigeria Civil Aviation Authority (NCAA), and the Nigerian College of Aviation Technology (NCAT), Zaria.
The new target is seriously affecting aviation agencies. Another source close to NCAA, who didn’t want to be named, confirmed the development to THEWILL.
Meanwhile, NCAA is the regulatory body for aviation in Nigeria which became autonomous with the passing into law of the Civil Aviation Act 2006 by the National Assembly and assent of the President of the Federal Republic of Nigeria.
The Act not only empowers the Authority to regulate Aviation Safety without political interference, but also to carry out oversight functions of Airports, Airspace, Meteorological Services, etc as well as economic regulations of the industry
Some of the responsibilities of the agency include: regulation of safety of aircraft operations, air navigation and aerodrome operations. It also oversees monitoring of aircraft operating environment for safety and security; regulating of methods of entry and conduct of air transport business.
In addition, the organisation also advises the ministry on policy formulation on aviation related matters; balance the economic interest of operators, users of aviation services as well as the general public and the nation as a whole.
Ultimately, it was set up to provide aviation safety and economic regulation in the most efficient, effective, quality and technology driven manner to the satisfaction and benefit of all stakeholders, consistent with the highest international standards and the sustainable development of the industry and national economy.
About the Author
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
