By Stanley Onyeka, Lagos
The Founder, United Nigeria Airline (UNA), Obiora Okonkwo, has called on the relevant authorities to consider a single-digit interest loan not exceeding three per cent for airline operators in the country.
Prof. Okonkwo decried the current practice in which operators face up to 30% or more charges by financial institutions in Nigeria against global best practice.
Mr. Okonkwo spoke in a statement on Saturday in commemoration of the airline’s 4th anniversary.
He said: “If you have to go to the bank today, it should not be anything less than 30%. The profit is very minimal.”
He argued that a single-digit interest rate will have a rippling effect on the economy and fast-track growth and development.
The statement reads further: “We have no doubt that if they (financiers) continue in this direction, the aviation industry would achieve the $1 trillion economy that Mr. President is targeting.
“If you equate it to a country with about $17 trillion GDP, it might as well be about the 15th richest country in the world. This is huge.
“The Nigerian portion of the cake is still very small. It’s small because the local operators have not been fully supported.”
He urged the government to consider a low interest regime for the aviation industry, especially as airline operators are competing with others who have access to very cheap loans.
There were challenges like access to foreign exchange and the trapped fund saga with foreign operators that gave Nigeria a negative image in the comity of nations. Some of these challenges faced by the sector were resolved by the President.
Meanwhile, Mr. Okonkwo used the opportunity to commend the Federal Government for creating an enabling environment for domestic airline operators to thrive.
He noted that in most African countries, over 70% of airline ownership and operation was by the government unlike Nigeria which has a free marketplace.
Commending President Bola Tinubu for prioritising the aviation sector, he said the $1 trillion economy target for Nigeria’s aviation sector is realistic given the enabling environment.
He said: “The foreign exchange policy introduced since the inception of the President Tinubu-led administration has revolutionised airline operations in the aviation sector.
“There were challenges like access to foreign exchange and the trapped fund saga with foreign operators that gave Nigeria a negative image in the comity of nations. Some of these challenges faced by the sector were resolved by the President.”
He added that operators no longer go through the nightmare of accessing foreign exchange from the banks to offset bills and fulfill their obligations to their partners abroad.
He also lauded the Minister of Aviation, Festus Keyamo, for instituting measures aimed at protecting the interest of domestic airline operators.
This is particularly comforting for United Nigeria Airlines, which Mr Okonkwo recalled made its maiden flight on February 12, 2021, describing the period as the most difficult time in aviation history due to the challenges posed by the COVID-19 pandemic globally.
