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Experts list Nigeria’s aviation industry’s challenges

By Babs Odukoya
21 December 2009   |   9:44 pm
By Wole Shadare and Chika Goodluck Ogazi EXPERTS in the aviation have identified lack of transparency, absence of legal and regulatory frameworks as challenges facing the success of concession in aviation industry. They however stated that public private partnership as encouraged by the president was the only way to develop infrastructure in the sector. Aviation Consultant, Chris Azu-Aligbe at a seminar in Lagos recently listed non involvement of relevant professionals, lack of legislative input or approval, stakeholder disregard and poor returns to government as some of the challenges.

He noted that before the concession exercise that it was proper to know what should inform choice of the exercise such as market force and investors interest.

“There are no clear forms, structures, underpinning laws, clear objectives or expectations, no destination or life expectancy. Certainty is uncertain. And these are why many voices have risen up against concessioning with many unanswered questions,” he said.

He, however, identified Build, Operate and Transfer (BOT) Build, Own and Transfer (BOT) Build, Own, Lease and Transfer (BOLT), Lease, Develop Operate (LDO) as types of concessions.

According to him, Build Own Operate (BOO) and joint venture were also aspects of concession. Also speaking, Mr. Olugbenga Odugbesan, head, Corporate Affairs and Communications, Bi-Courtney Aviation Services Ltd stressed the need for adequate funds for infrastructure.

He noted that a lack of funds would not improve the quality service in the sector.

It is, therefore, very important to reorient the public on the concept of PPP and secure their buy-in.

“This will change the public perception of concessionaires or investors in a PPP arrangement,” Odugbesan said.

He explained that concessionaires had been known to take quick business decisions devoid of politics and bureaucracies.

“The decisions are such that the state could not take for various considerations,” he said.

He explained that global demand for basic infrastructure services had grown over the years, quickly outstripping the supply capacity of existing assets.

According to him, Nigeria’s experience was that huge infrastructure deficit had greatly constrained economic growth and development, thus inhibiting our ability to improve the quality of life as envisaged in the seven- point agenda.”

Those, he said, were the words of President Umar Yar’Adua exactly thirteen months ago when he inaugurated the Chief Ernest Shonekan-led Infrastructure Concession Regulatory Commission (ICRC).

According to him: “The president’s position derived from the global embrace of PPP by leading democracies and governments for infrastructure rebirth for sustainable economic growth and development. Nigeria, as a nation aspiring to be in the league of the world leading 20 economies by 2020, cannot afford to let this opportunity of risk and responsibility transfer to the private sector slip by.”

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