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Published On: Thu, Jul 31st, 2014

N1trn spent in aviation in two years: Stakeholders call for investigation

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Airport in NigeriaFrom Suleiman Idris, Lagos

The new aviation Minister Mr. Osita Chidoka has been given an onerous task even as he settles down to map out strategies to drive Nigeria aviation as some stakeholders yesterday called for investigation into how an estimated N1 trillion generated in the sector for a period of two years was misappropriated.

At a briefing in Lagos, a pressure group Aviation Round Table (ART) that has former Commander of the Presidential fleet, Captain Dele Ore, a former Airspace Manager, Sam Akerele and former Commandant, Murtala Muhammed Airport, Lagos, Group Capt. John Ojikutu (rtd) alleges that over N1 trillion accrued to the sector in two years without corresponding projects and infrastructure to match such huge amount generated.

The trio called on Chidoka to prioritise some of the projects and ensure none is abandoned affirming domestic airlines in the country will found it difficult to operate in a situation where they charge N8, 000 for an hour trip except if the cut corners. They want the Nigeria Civil Aviation Authority (NCAA) to undertake financial audit of domestic carrier to ascertain their true financial position. Specially, they outline funds accrued to the sector in the years under review to include $500 million source from Chinese government, $84 million Bilateral Air Services Agreement (BASA) revenue while an examination of the Internally Generally Revenue (IGR) of revenue generating agencies from 2011 at an annual growth rate of six per cent shows that the agencies could be generating over N150 billion revenue annually from the country’s 22 operational airports.

Ojikutu said, “Let’s take it from the N1000 passengers’ charge, whenever they pass through the airport. When FAAN comes out and tell you we have carried 150 million passengers, but I don’t use that statistics. Let’s use about 11 million passengers for local and about 5 million for international passengers. They collect money for the outgoing on international, which is $50. For the outgoing, you can work out about two to three million passengers; you can multiply that by $50.

“For the domestic passengers, they collect N1000. If you carry 100 passengers from Lagos today and another 100 passengers from Abuja the same day, that is 200 passengers and multiple that by N1000. So, if you carry one million passengers and they all pay N1000 that is N10 billion per annum. Then, you look at the number of air traffic they carry, which is an average of 300 daily.

Pick an average of 200 that are landing. Boeing 777 pays about $3000 landing and parking. And the least aircraft pays $400. So, pick an average of $1000 for the number of traffic and multiply that by the numbers of aircraft that land daily, you get a figure in dollars. Then, you go into cargo, cargo is about N200 million and they are charging about N10 per kilogramme. So, you multiply that and you get a figure. Then, the surcharge on fuel sales, which is about N10 per litre and in a year, they sell about one trillion litres because they sell three million litres daily”


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