Ahmed Kuru, the Managing Director and Chief Executive Officer of the Asset Management Company of Nigeria (AMCON) has ascribed the high incidence of airline failure in Nigeria to multiple taxation and high charges imposed by regulatory bodies on airline operators.
He said the lifespan of local carriers had been cut short by these fiscal policies in addition to uncertain and unstable foreign exchange as well as other problems peculiar to the country.
“The failure of many airlines in Nigeria and why those that are still operational are struggling is attributable to a litany of peculiar Nigerian problems including greed exhibited by airline owners; financial rascality, overbearing charges and taxation by regulatory agencies.
“Others are unpredictable and unstable forex; non-existent good corporate governance principles; lack of due diligence procedure and other associated risk as well as over-invoicing, among other challenges.”
Mr Kuru also identified some of the factors contributing to the unstable domestic air travel market as willingness of banks to venture into funding aviation business without full depth of how the industry operates.
He made these assertions at an aviation leadership CEO roundtable organised in commemoration of the 10th anniversary of Aviators Africa (magazine) in Lagos on Saturday.
While delivering the keynote address titled, “Aircraft Financing: The Issues & Challenges of Asset Management Corporation of Nigeria (AMCON),” the AMCON boss, represented by Mr Tajudeen Ahmed, a top official of the agency, called for a complete overhaul of the aviation industry’s operation process, describing it as the most difficult sector to manage in Nigeria.
“In my opinion, the aviation sector, which is a critical component of the transport, is perhaps one of Nigeria’s most challenging sectors; especially in the light of the massive need for infrastructure development in air, rail, road and sea transport to ensure seamless movement of people and cargo. Regardless of the mode of transport – the aviation sector has proved to be a catalyst for the economic development of nations. It is the wheel that drives economic activities. The air transport sector facilitates trade, tourism; boosts productivity in the economy; improves efficiency in the supply chain; it is an enabler for investments; can spur innovation, facilitate commerce and provide fast and reliable delivery of cargoes and services.”
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