Dr. Thomas Ogungbangbe, Managing Director of CITA Aviation Fuelling Company Ltd, has outlined strategies to improve the survivability of Nigeria’s aviation sector. Speaking at the 28th conference of the League of Airports and Aviation Correspondents in Lagos, he emphasized the need for the government to focus on maintaining and improving existing airports rather than investing in new ones that may not provide immediate returns.
Addressing the theme “Aviation Survivability Amidst Challenging Macro-Economic Environment,” Ogungbangbe highlighted that Nigeria, with a population of approximately 250 million, has over 30 airports, yet only three are financially viable. He stated, “This stark reality underscores a severe underutilization of our aviation infrastructure and highlights the need for a strategic shift in how we approach aviation sustainability. Passenger traffic in our sector is closely tied to economic activities. A robust economy generates increased business and leisure travel, leading to higher passenger volumes. Therefore, our focus must be on stimulating economic growth and activities that will, in turn, boost demand for air travel. This requires a concerted effort from all stakeholders, including the government, private sector, and international partners.”
Ogungbangbe pointed out that investing in new airport projects while neglecting essential infrastructure like roads is counterproductive. Improved road networks facilitate easier access to airports, making air travel more attractive. He urged for prioritizing the maintenance and improvement of existing airports and infrastructure over new projects with delayed returns.
Drawing lessons from regions like Singapore and Hong Kong, Ogungbangbe noted the benefits of focusing on economic activities and strategic investments. For example, Singapore, with a population of 6.03 million, recorded 16.5 million passenger movements through Changi Airport in just the first three months of 2024.
He advocated for policies and investments that stimulate economic growth, such as enhancing road infrastructure, supporting small and medium-sized enterprises (SMEs), and boosting sectors like tourism and trade that drive air travel demand. Efficient allocation of resources, public-private partnerships for airport management, and integrated transportation plans connecting airports with rail and road networks were also recommended.
Ogungbangbe emphasized the need to actively market Nigeria as a travel destination, including offering incentives for airlines to increase routes to and from Nigeria and campaigns to attract international tourists and business travelers.
He also addressed the critical issue of high aviation fuel prices and poor access to foreign exchange, which severely impact the sector. “One of the critical challenges in our sector is the high cost of aviation fuel. This affects ticket prices, operational costs, and passenger traffic. The volatility in fuel prices, coupled with poor access to foreign exchange and a weakening currency, exacerbates the financial strain on airlines. Maintenance costs and the need for technological upgrades further add to the burden, making it difficult for airlines to operate profitably,” Ogungbangbe concluded, calling for government intervention to alleviate these challenges.
