Single African air transport market forecast to grow Nigerian aviation sector by 5% a year

NIGERIA'S aviation industry is expected to experience an annual 5.1% growth in gross domestic product (GDP) if the proposed Single African Air Transport Market (SAATM) programme is fully implemented.

SAATM is a flagship project of the African Union’s Agenda 2063 designed to create a single unified air transport market, liberalise civil aviation and drive the continent’s economic integration agenda. Promoting intra-regional connectivity between the capital cities of Africa by creating a single unified air transport market across Africa, the plan was adopted by the African Union Assembly in 2015.

African Civil Aviation Commission (Afcac) secretary-general Olufunke Adeyemi, said going by aviation traffic as a function of GDP, passenger volume to and from Nigeria is predicted to grow at 3.3% yearly. She, however, said  the full implementation of SAATM could increase thus volume to 5.1% annually.

Quoting a report on SAATM by Embraer in 2020 and using the traffic forecast and economic impact estimates from the International Civil Aviation Organization, it is estimated that by 2038, the aviation industry in Nigeria could generate up to 800,000 jobs, with 60,000 directly associated with airline operations. Ms Adeyemi added that the industry could contribute $1.3bn to national GDP, rising to an impressive $7.2bn when indirect effects of tourism are taken into account.

Ms Adeyemi said: “We are here today to engage with our Nigerian stakeholders to see how we can intensify efforts to implement practical strategies and concrete actions to address the challenges preventing the achievement of the projected growth, share ideas to boost the development of air links to and from Nigeria, promote tourism, trade and investment development, especially through improvements in the regulatory framework, infrastructure investment as well as operational incentives for airlines to create a competitive environment for aviation business to thrive. As we move towards accelerating the full implementation of SAATM, what is expected of us as major stakeholders are to join hands for its implementation.”

She encouraged all Nigerian-eligible airlines to take advantage of SAATM and expand their operations across Africa. “We should also invest in infrastructure to ensure safe, secure, efficient, sustainable and competitive operational environments that promote easy connectivity, business growth and job creation across the African continent,” Ms Adeyemi added.  

Hadi Sirika, Nigeria's aviation minister, said the federal government will continue to support policies and programmes that promote the full implementation of SAATM. While stating the importance of SAATM in supporting the growth of the air transport market in sub-Saharan Africa, he noted that while the market is growing in southern and eastern Africa, there are still major challenges to be addressed in other regions.

Mr Sirika said: “East and southern African carriers are dominating international and domestic markets which are becoming increasingly concentrated. In contrast, in central and western Africa, the sector is stagnating, with the vacuum created by the collapse of mostly state-owned airlines and a few privately owned airlines in the region."

Captain Musa Nuhu, the director-general of the Nigerian Civil Aviation Authority said air connectivity is an asset, which improves the global competitiveness of cities, states and regions. He added that increased air connectivity brings concrete value by making trips shorter with optimal user satisfaction at minimum prices.