How Nigeria plans to revive its aviation sector post-COVID-19
It is now five days since Nigeria reopened its air borders to commercial international flights after over five months of COVID-19 shutdown. President of the Nigeria Aviation Roundtable, Gbenga Olowo joins CNBC Africa’s Kenneth Igbomor to discuss the resumption protocols and expected impact on the aviation sector.
Wed, 09 Sep 2020 11:48:03 GMT
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AI Generated Summary
- Impact of Infrastructure Deficit on Flight Capacities and Tariffs
- Anticipated Challenges in the Aviation Value Chain
- Issues with Fiscal and Monetary Interventions Amid Sector Constraints
Nigeria recently reopened its air borders to commercial international flights after a long period of closure due to the COVID-19 pandemic. The resumption has brought to light various challenges facing the aviation sector in the country. President of the Nigeria Aviation Roundtable, Gbenga Olowo, shed light on the impact of the reopening and the issues that need to be addressed to revive the sector. One of the major challenges highlighted by Olowo is the infrastructure deficit in Nigeria's airports. The social distancing protocols have led to restrictions on the number of flights and passengers that can be accommodated, causing a mismatch between demand and capacity. This has resulted in higher tariffs and difficulty for airlines to cope. The value chain of the aviation sector is also expected to suffer due to these capacity constraints. The impact of the pandemic has created a recession-like situation, affecting various aspects of the aviation industry. The lack of optimal capacity due to infrastructure limitations is likely to hinder the sector's recovery in the coming months. The restrictions on frequencies and passenger numbers are anticipated to have a ripple effect on the entire travel network, affecting services, maintenance, and aeronautics. Despite interventions from fiscal and monetary authorities, the sector continues to face challenges in engaging with the government to address the issues effectively. The pandemic has disrupted consumer buying power, investment opportunities, and government spending, leading to a negative impact on the overall national income and policies. In conclusion, navigating the challenges in Nigeria's aviation sector post-COVID-19 requires a comprehensive approach to address infrastructure constraints, stimulate demand, and enhance industry collaborations to facilitate a sustainable recovery.