Diamond Aircraft examines the prospect of opening manufacturing plants in Nigeria

CHINESE aircraft manufacturer Diamond Aircraft has announced plans to expand its operations  into Africa with a special focus on Nigeria under an ambitious plan that will involve the opening of plants across the continent.

Diamond Aircraft , which has over 6,000 aircraft flying worldwide, has not had a clear strategy for Africa until now. Before the pandemic hit, Diamond Aircraft had already planned to visit Africa to explore investment opportunities but the shutdown truncated all these plans, putting everything on hold.

Prior to the lockdown, the company had three main purposes for the visit, namely to assess the African market, to meet with potential customers and business partners and to find a local partner to produce their aircraft. Bin Chen, the chairman of Diamond Aircraft, visited Hadi Sirika, Nigeria's aviation minister over the weekend, where he said there was a need to revisit these plans.

Mr Chen said: “We are excited to explore the potential of the African market and to meet with local partners who can help us establish a strong presence in Nigeria. We believe that Nigeria has great potential for growth and we are eager to be a part of that growth.

“We are looking for a partner who can help us bring our aircraft to the Nigerian market and ensure that they meet the highest standards of excellence. We believe that there is a great opportunity here and we are eager to explore it.”

Mr Sirika said that in an effort to boost the aviation industry in Nigeria, a new maintenance repair and overhaul (MRO) facility had just been established through partnerships, adding that it is one of many in the country and is set to provide maintenance services for a wide range of aircraft. He added that also, the National College of Aviation Technology in Zaria has established an MRO under the national hangar project, noting that with over 14,000 aircraft engineers and mechanics in the country, Nigeria is well-equipped to handle the maintenance needs of the aviation industry.

Mr Sirika added: “You are in the centre of Africa and since you are producing for Africa, you cannot go to the coast to produce, so, Nigeria is your best location. We also have a very flexible civil aviation requirement, so, the government of Nigeria is welcoming you with open arms to come and set up.

“There is also a lot of charter business in Nigeria and a chartered aircraft is between $9000 to $12,000 per hour, so, there is a huge market in Nigeria. So, if you are in Africa and you are not in Nigeria, then you are not in Africa.”

Listing some of the advantages the firm would benefit from when they invest in Nigeria, finance minister Zainab Ahmed, said in a bid to encourage new businesses to set up in Nigeria, the government had announced significant tax policies and incentives, adding that there is a double taxation agreement in place that protects businesses from being taxed twice on the same income. She said that additionally, there is now a pioneers status available for three years, which is renewable and offers a range of benefits, including import duty waivers for equipment and aircraft spares.