Federal Government has projected about N14 trillion investment plan to develop the country’s aviation industry in the short, medium and long term as part of measures to develop the sector to compete with other countries in passenger growth and also contribute to the Gross Domestic Product (GDP).
The investment portfolio of USD 62 billion, (about N15 trillion), the Minister of Aviation, Mr. Osita Chidoka said is attainable because Nigeria was strategically located from where airlines can easily connect with other African countries, Europe and the Middle East as its population size and demography is a huge asset.
He also said that the aviation industry has contributed about $0.7 billion (N137.9 billion) to the Nigerian Gross Domestic Product (GDP). Speaking at the Aviation Executive Business Forum in Lagos, Mr. Chidoka said a projected investment of USD 12 billion in the short and mid-term by 2018 will result in passengers’ growth to between 12 and 25 million while the long term investment of USD 50 billion by 2043 will ferry 110 million passengers.
Chief Chidoka explained that government will create the enabling environment that will offer decent returns on investment to every stakeholder in the industry and contribute to the country’s GDP that currently stand at 0.4 percent. He also said part of the action plans include stimulating both local and foreign direct investment, facilitate government intervention and guarantees as well as reduce industry risk and expand credit and aviation finance tailored to industry requirement.
The minister said “as we gradually transit into a new era of aviation business, this government is ready to make sure that those turning the wheels of the industry do so with ease” According to him, the current GDP in Nigeria was $80.3 billion (N15, 819 trillion) affirming that the industry had been under utilised thus preventing it from becoming a major regional opportunity as a hub of West Africa.