The Regional Vice President, Africa & Middle East, International Air Transport Association, Kamil Alawadhi has disclosed that Lagos and Abuja airports rank the most expensive gateways in the region despite the poor state of their infrastructure.
According to the Nation, Alawadhi revealed this in an interview adding that data from IATA indicated that there are at least 27 charges imposed by the Nigerian government on airlines running both local , regional and international flight operations.
It was said that Nigeria currently has the highest figures of airlines blocked funds on the continent hitting $850 million. Nigeria is trailed by Egypt with $348m, Algeria $199m, AFI zone $183m and Ethiopia $128mn.
It was also gathered that Nigerian financial institutions charge over 25 per cent interest on loans, operate a regime of airport taxes with airlines paying high insurance premiums, six times higher than anywhere in the world. Experts say running airlines in other parts of the world presents cheaper operating costs.
While confirming the development, Alawadhi said, “Every airline has its challenges and it depends on where it operates. Nigeria has two most expensive airports; their fuel is higher than elsewhere in the world, and insurance is six times more expensive than anywhere else in the world.
“The interest on loans is 25 percent. It is ridiculous. It is the highest interest I have ever seen. When you set up these airlines, you are already disadvantaged. Any airline in Nigeria operating outside of Nigeria has a cheaper operating cost and better prices than Nigerian airlines. You can see why it is difficult for African airlines to make profit.
“IATA is identifying why these costs are high and we are trying to tackle them one by one by seeing how they can reduce the costs. We are expecting that the operating costs of the African airlines will be lowered and they can become profitable.”
Nigeria along with Liberia and six other countries have been listed among the top African countries with high airport taxes and charges.
Other countries include Guinea Bissau, Senegal, Bangui, Sierra Leone, Republic of Congo and Nigeria.
Expressing concerns over the development, Aviation Safety Round Table Initiative, urged the Federal Government to implement measures that will keep the sector running.
Its President, Demola Onitiju said the focus of the government should not be that of seeing aviation as a revenue generating sector.
He said it should rather be seen as a catalyst, an enabler of socio-economic growth and development.
