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Aviation professionals outline paths to sector recovery

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Professionals from different disciplines in the aviation industry have suggested various ways to ease the pains and ensure progress in the sector over the next 12 months.

They spoke during different interviews with our correspondents. A retired airline captain, Muhammed Badamosi, raised concerns over the state of Nigeria’s aviation sector, warning that years of neglect, weak regulation, and poor infrastructure could push the industry to the brink of collapse if urgent reforms are not undertaken.

Badamosi likened the sector’s development to “a journey where you take one step forward and two steps backwards,” arguing that little has changed over the past decade.

“In terms of infrastructure, financing, and regulatory oversight, the aviation sector today is no better than it was 10 years ago. Which of these areas has truly improved? We need to ask ourselves honest questions if we want progress.”

According to the retired pilot, Nigeria’s major airports are still operating with obsolete navigation systems that the rest of the world has long abandoned.

Badamosi explained, “Since the 1980s, most of our major airports have relied on Category 2 Instrument Landing Systems and VOR for navigation. Globally, aviation has moved on to Category 3-1, 3-2, and even 3-3 systems. What are we still doing here, more than 20 years after joining the world on Category 2 ILS?”

He noted that while Nigeria is spared the extreme winter conditions of the northern hemisphere, the limitations of Category 2 ILS still pose risks. He said, “In severe weather, Category 2 ILS is practically useless. We are only lucky that what we deal with here is mostly harmattan haze and short-lived fog.”

Badamosi also pointed to deteriorating airport infrastructure, including runways and taxiways that require urgent rehabilitation or outright reconstruction.

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“Have we achieved total radar coverage under TRACON? I don’t think so. These are the things that make airports safe. Without them, safety is compromised.”

Another major concern raised was the prevalence of ageing aircraft in the country’s fleet, many of which are second-hand. He cited recent incidents involving nose-wheel collapses during landing or taxiing as troubling signs.

“Some of these incidents should never have happened,” Badamosi said. “In some cases, the Nigerian Civil Aviation Authority is complicit because of corruption in the system.”

Badamosi criticised the current structure of aircraft inspection within the NCAA, noting that inspectors often stay far longer than regulations allow. “Inspectors are meant to be engaged on three-year contracts, renewable for just one year. Today, some have been in the system for over eight years.”

He explained that the original policy was designed to reduce the risk of inspectors becoming compromised by operators. “If you ask the Director-General, he may say it’s cost-effective,” Badamosi said. “But it’s time we weigh the cost of training against the cost of flight safety.”

He also described federal funding for aviation as inadequate, noting that about N714bn has reportedly been budgeted for aviation services. “That amount is highly inadequate for a sector as capital-intensive as aviation,” he said.

As a solution, Badamosi suggested concessioning some airports to reduce the financial burden on the government and improve efficiency. “The government can help itself by concessioning airports if Nigeria wants to be highly rated in global aviation,” he said.

Looking ahead, he stressed the need for sustainable financing and strategic partnerships. “Aviation is capital-intensive. Both airlines and service providers need sustainable financing to meet the challenges ahead. Members of the Airline Operators of Nigeria should seek partnerships with foreign airlines willing to operate here.

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“One of the reasons foreign airlines are reluctant to lease aircraft for operations in Nigeria is the state of our infrastructure. If these issues are not addressed urgently, the sector risks collapse and possible blacklisting.”

Also speaking, the President of the National Association of Nigerian Travel Agencies, Dr Yinka Folami, insisted that the controversial claim about 18 taxes on airline operators was unfamiliar to industry professionals with decades of experience in airfare construction and ticketing.

He called for a government probe of the claim for the benefit of all. He explained that in over 50 years of NANTA’s existence, the assertion of 18 government taxes on a single ticket was new to the association, which has over 4,000 registered members.

He, however, said the claim of 18 taxes on each ticket may not be impossible but insisted it required proper enquiry and deconstruction. “Unfortunately, everyone has become an expert on aviation taxes. But leadership demands focus. Let us stop speculation and interrogate the construction of these alleged 18 taxes.”

“In June, a Lagos–Abuja one-way ticket sold for about N100,000 or less. By December, it jumped to between N200,000 and N250,000. Government taxes did not change within that period. So, the increase cannot be attributed to taxes.”

He insisted that such fare increases were a result of airline business decisions influenced by seasonal demand, not government policy.

Also commenting, travel analyst Lucky George attributed the persistent fare challenge to capacity constraints by Nigerian airlines, rather than taxation. George said the Nigerian aviation market serves over 200 million people, yet capacity is limited, stressing that high fares are largely a result of supply failing to meet demand.

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He argued that high prices have made air travel inaccessible to a large segment of the population, despite strong demand. George also canvassed the re-establishment of a new national carrier, declaring that the current indigenous airlines lack capacity.

Industry expert Olumide Ohunayo emphasised the need for stronger collaboration among airport authorities and for unruly passenger cases to be taken beyond media attention to actual prosecution.

He also argued that rising airfares should not be dismissed as a seasonal issue. According to him, government support in helping airlines acquire more aircraft and establish local maintenance, repair, and overhaul facilities would ease capacity constraints and ultimately reduce ticket prices.

“First, I really want to see real synergy among airports and take unruly cases beyond the airport and media to the prosecution stage. We have seen in other climes where offenders are punished by the law because of rules that automatically take effect when airport laws are violated.

“The system follows through to ensure that airport offenders are punished, but here, what we see is that after media reports, everybody goes to sleep. That is why we continue to have a recurrence of bad behaviour at our airports. Nobody should be above the law.

“Rather, the government should continue to help airlines get more aircraft and also establish MROs within our domain. These measures will help drive airfares downward. What we have noticed is that there is a capacity constraint, and this aspect needs serious attention at this time.”

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Nigerian states’ revenues rise 93%, but education spending drops — World Bank

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The World Bank says Nigeria’s 36 states recorded a 93 per cent increase in revenues between 2023 and 2025 but education received a declining share of the sector’s expenditure.

The bank disclosed this in its latest Nigeria Development Update, which examined how increased public revenues have influenced spending priorities across the federation.

The report was made available to the News Agency of Nigeria by the World Bank in Washington D.C.

According to the report, states’ aggregate revenues rose by approximately 93 per cent in real terms, while expenditure increased by 92 per cent during the period.

The report attributed the improvement partly to exchange-rate reforms, petrol subsidy removal, stronger revenue administration and increased allocations from the federation account.

It said states also benefited from refunds, settlement of longstanding federal obligations, intervention funds, and stronger Value Added Tax collections.

However, education’s share of total state expenditure declined from 14.9 per cent in 2021 to 12.1 per cent in 2025, according to the report.

Health expenditure remained broadly stable at approximately seven per cent, while social protection’s share increased from 1.4 per cent to 4.4 per cent.

The bank said capital expenditure increased significantly, accounting for 61 per cent of state spending, compared with 46 per cent previously.

Transport infrastructure recorded the largest increase, alongside substantial spending on housing, agriculture and other economic investments.

The report quoted Mathew Verghis, the World Bank Country Director for Nigeria, as saying that increased revenues provided the opportunity to improve infrastructure, education, healthcare, and water services.

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He said greater spending efficiency, accountability and improved service delivery were essential to ensuring that additional public resources benefited Nigerians.

The bank acknowledged improvements in states’ fiscal reporting, transparency and internally generated revenue.

It, however, stressed that stronger investment in human capital was necessary to translate economic reforms into sustainable employment and improved living standards.

The report also projected average economic growth of 4.4 per cent between 2026 and 2028, subject to sustained reforms and improved service delivery.

It urged federal and state authorities to ensure that increased public revenues translated into tangible improvements in Nigerians’ welfare.

NAN

Source: punchng.com

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Nigeria promotes investment without building production capacity – UNILAG don

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A professor of Comparative Political Economy at the University of Lagos, Adelaja Odukoya, has asserted that Nigeria’s economic policies promote investment without sufficiently strengthening domestic production.

Odukoya argued that the contradiction had weakened the country’s productive foundations, with policies encouraging investment and entrepreneurship while failing to create the technological capacity, productive employment and processing industries needed to drive sustainable development.

Odukoya spoke at the maiden edition of the Adeleke University Toyin Falola Annual Lecture, held on Thursday at the Performing Arts Theatre, Adeleke University, Ede.

The lecture had as its theme, “History, Power and Accumulation: Reimagining Africa in the Globally Disorderly Order.”

Odukoya identified several contradictions in the way the Nigerian state manages economic activity.

He said, “The state promotes investment without creating conditions for technological transfer. It encourages entrepreneurship without generating sufficient productive employment.

“It expands primary-product exports while leaving processing capacity undeveloped. It constructs infrastructure without establishing strong linkages with domestic production.”

According to him, the contradictions explain why increased economic activity and accumulation do not necessarily translate into development.

“Accumulation is not synonymous with development,” Odukoya stated.

He argued that genuine development should be measured by the expansion of productive, technological, institutional and human capabilities.

“A country could attract investment, export minerals and agricultural commodities and record economic activity while still failing to build the domestic industries and technological capabilities required for long-term development,” he said.

His argument was echoed by Prof Toyin Falola, who said Africa’s vast natural resources would continue to reinforce dependency unless governments developed the industrial, technological and institutional capacity to transform them into productive power.

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Falola said Africa’s resource problem was not simply one of historical exploitation, but also the continent’s failure to convert its resource endowments into power.

“The issue, however, is not just to repeat the history of exploitation. It is more important to know how Africa turns its great resources into power,” Falola said.

He argued that Africa could not afford to remain a spectator as global economic and geopolitical arrangements continued to change, stressing that resource ownership without the capacity to add value would not guarantee influence.

Falola said the continent required a combination of knowledge, government policy and industrial capacity to change its economic position.

“There must be universities that generate new knowledge; there must be governments that translate this knowledge into policies; there must be industries that add value to the continent’s natural resources,” he said.

He added that Africa needed more than improved infrastructure and stronger economies if it wanted to exercise greater influence in the global system.

“The future of the continent will require more than just better infrastructure, improved economies, and more effective political institutions,” Falola said.

Source: punchng.com

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Import waivers, insecurity end two-year agric trade surplus

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Import waivers meant to ease hunger and insecurity on farms have led to a deficit, ending a two-year run of surpluses, as Nigeria’s agricultural trade balance swung from a N740.27bn surplus in the first half of 2025 to a N56.13bn deficit in H1 2026, according to agriculture and trade experts.

Recent foreign trade data from the National Bureau of Statistics showed that agricultural exports fell by 33.28 per cent, or N985.14bn, to N1.98tn in H1 2026 from N2.96tn in H1 2025.

Agricultural imports fell by only 8.50 per cent, or N188.74bn, to N2.03tn from N2.22tn over the same period. The gap between the two movements produced a N796.40bn swing in the trade balance.

Nigeria recorded a N365.74bn deficit in H1 2023, when imports of N926.25bn far exceeded exports of N560.51bn. The balance then turned to a N194.92bn surplus in H1 2024 before it widened to N740.27bn in H1 2025.

In separate phone interviews with The PUNCH, Agribusiness experts, including the Chairman of the Lagos Chamber of Commerce and Industry’s Agricultural and Allied Group, Tunde Banjoko, explained that recent government policy led to the shift.

Banjoko said, “Some waivers were given for products like palm oil and rice, and the import tariffs were drastically reduced. It became more favourable for people to import than to patronise local producers.”

He said the waivers on food commodities hurt domestic producers, even though lower tariffs on tractors and manufacturing equipment helped them.

According to Banjoko, “The effect is that our imports will rise above our exports. Second, we will discourage local production. Thirdly, we will be reducing employment, because some factories will shut down if they are not able to compete.”

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Banjoko also said weak funding for processors compounds the problem. He said foreign direct investment flows mainly into the capital market rather than into production and processing, so local processors cannot scale.

He urged the Federal Government to speed up the Special Agro-Industrial Processing Zones programme. “We should speed up such projects where we can produce enough for our country and start exporting, not look for shortcuts by reducing prices,” Banjoko added.

Meanwhile, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, identified two major factors behind the deficit. He said the first was the Federal Government’s decision to allow some food imports to tackle runaway inflation.

Yusuf said, “The first is the decision of the government to allow for some food imports as a result of the challenges of food inflation, which at a point was getting almost completely out of hand.”

He added that insecurity worsened the supply gap and cut export capacity, stating, “Insecurity led many farmers to leave their farms. Many of them have ended up in IDP camps, and quite a number have completely abandoned farming.”

He added that farmers cannot export without output. Yusuf said, “You can only export when you have the output.”

Yusuf also said high input costs and falling produce prices have discouraged farming. He said, “Most of these inputs are imported, so the exchange rate situation has seriously affected the cost of inputs, and the prices of produce have gone down.”

He urged the Federal Government to cut the cost of fertiliser, agrochemicals, machinery and improved seedlings. He also called for a minimum guaranteed price for agricultural produce.

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Yusuf said, “The government can establish a threshold below which, if prices fall, it will give farmers some compensation. That is the way it is done in many other economies.”

Source: punchng.com

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