RE: The New Nigeria Civil Aviation Policy (NCAP 2013)

The Honourable Minister of Aviation recently unveiled the new NCAP, which has attracted more condemnation than commendation. A civil aviation policy document is usually midwife by the Honourable Minister through the interplay of various stakeholders. This policy did not go through that refining process, hence the hurried meeting with operators and stakeholders five days after the unveiling. In the minister’s message, which was personally signed, she said “the Federal Government is conscious of the fact that sustainable implementation of this policy will require the collective participation of all stakeholders.” The stakeholders should have been carried along from the beginning rather having selective participation. The policy is out and having gone through it, I will align with those commending the policy, while I also believe we need to tweak some positions taken. Fortunately, it is a policy and not regulations and can be reviewed if it’s not in the best interest of the country. The Nigerian Aviation Economic Regulatory Unit is a refreshing innovation that will curb and punish predatory activities, while gingering competition and most importantly protect domestic carriers and consumers from companies and airlines with significant market power and dominant position. The NCAA should focus on technical and safety oversight, their core competence, incidentally the policy tallies with the World Bank report that was presented to stakeholders last week. If the unit is not politicised or made an appendage of the Ministry, it will be the most important legacy of this administration, and will also act as a purveyor of an encompassing antitrust body that will protect Nigerians in other sectors of the economy. The requirement for a minimum of three aircraft for domestic operators and five for regional and international operators is also commendable, though a little shy of our expectations, but a good beginning for the regulatory consolidation process. The minimum paid up capital does not work here, it is a mere paper document that can be sourced by conniving with the same banks and other institutions they used to siphon bailout fund. The policy statement on foreign registered aircrafts and some operational aspects will ginger the transformation and improve the local content input of the aviation industry. It will also encourage pooling of resources, which is a better ownership option. It is also commendable that after an Initial Gra Gra (IGG), the Ministry has accepted the inevitability of the PPP concept. The World Bank team reechoed it last week, it is the only panacea for maintaining and sustaining our airports, what has always been the problem is transparency and openness. The transformation train should be prepared to berth at FAAN as an organization, while also thrashing out the numerous PPP associated litigations. The route dispersal guidelines and schedule operators permit entrenched in the Public Service Obligation (PSO) programme is also commendable. I will advise that the host state and adjoining local governments close to such airports be made to partake in the programme. Also, with the PSO programme in place, it is not necessary to give incentive to domestic operators of 80 seats and below, the idea is a selfish subsidy. Routes allocated and not utilized by Nigerian carriers should be withdrawn immediately and given to other Nigerian carriers that have shown interest. If reciprocity is the dignifying word we should not shackle carriers that are ready and willing. The policy got this right; I must also commend the idea of encouraging non-schedule operators to ply routes abandoned by schedule operators, the civil aviation regulations in place might make it difficult in the short run, due to the certification needed to operate commercially. The National Aviation Safety Committee will coordinate the activities of the Nigerian Airlines with respect to the NCAP and the Aviation Consumer Council, comprising stakeholders and users are innovations that will aid monitoring and key performance index. After numerous litigations that have increased the country’s public debt, it is with great relief that the policy has asked Service providers in the aviation industry including Airports and the Air Navigation Operators to put in place adequate third party insurance cover. The policy reiterated the waiver on import duties and spares for commercial and private operators. The waiver is a subsidy and should be for commercial operators, not for private operators. Rather, a luxury tax should be added for this category of operators. Yamoussoukro Declaration will be the basis of negotiation with member states, since the policy says so. Then the request of the Ghanaian and Gambian carriers that have applied to operate into the country should be granted without delay in the interest of our leadership position in the sub-region and Nigerian consumers the policy seeks to protect. Passengers flying Banjul and Accra routes are being fleeced by Arik in fares and service. Single and Seamless Sky is a futuristic project that is also commendable, it will improve safety, reduce pollution and fuel burn. NAMA management should begin to look at alternate source of funding, while critically perusing the recent World Bank report. The message in the World Bank report with respect to NAMA calls for reflection rather than grandiose. Some aspects of the policy need to be reviewed, an independent search and rescue agency with offices in the six geo-political zones will only over burden the system with attendant cost implication. Why do we want to protect a new group of private investors at the expense of existing investors using the banner of a National Carrier? The government is starting another flag carrier not national, so the carrier should be free to compete rather than seek government protection. The same protection Virgin Nigeria signed with government only to repudiate to the consternation of the investors. Also, the Fly Nigeria Act that would have aided our commercial airlines was again bypassed, a phased implementation starting with charter flights and some regional routes would have been appropriate. The MD guaranty trust bank last week said “ we will rather invest in the private jet sector rather than the commercial jet sector that are there today and tomorrow no more.” Let’s ponder !!! I also strongly feel that the issue of insurance and passengers to be ferried by the private jet operators should be in the regulations rather than the policy. It would have saved us the unnecessary distractions that it has generated since it’s unveiling. In concluding, NCAP 2013 says, “the policy is designed to provide a platform for the way forward and future prospects of the aviation industry, set new paradigms in air travel standards which will provide consumers with appropriate protections without affecting the ability of airlines to set service levels in a competitive market”. Also, “all civil aviation service providers shall promote effective implementation of the NCAP in their areas of activities and ensure that the spirit of the NCAP is adhered to.” The NCAP 2013 spirit can only be achieved if the ministry can boldly and honestly allow these tripod- implementation, monitoring and review without political interference or imposition.