Skip to content
Abel News NG

Abel News NG

Latest news

Primary Menu
  • LATEST NEWS
  • Aviation
  • Airlines
  • Business
  • News
  • Hospitality
  • Politics
  • ABOUT US
  • Home
  • 2015
  • December
  • 8
  • Expert Identifies High Interest Rate, Over Regulated Financial System Aviation Obstacles
  • Aviation

Expert Identifies High Interest Rate, Over Regulated Financial System Aviation Obstacles

admin December 8, 2015 3 min read

An Aviation Expert and Managing Director of Katari System Nigeria Limited, Ali Mohammed Magashi, has identified very high interest rate charged by airlines by commercial banks in the country as one of the several funding obstacles militating against the growth of the industry.
He also mentioned poor credit rating as one of the major obstacles.
Katari made the identification while presenting a paper titled,”Financing Nigerian Aviation: The Option For Growth” at the Nigeria Travel Mart(NTM)1st Anniversary Colloquium with the theme, “Leapfrogging Nigerian Aviation To Match Her Potential” on Tuesday, December 8,2015.
Speaking further Katari listed other funding obstacles to the growth of Nigerian aviation to include; over regulated financial system, which according to him impedes on simple and genuine foreign currency transaction, over regulation and expensive procedures by the Nigerian Civil Aviation Authority (NCAA),which he said impede on start-up airlines.
Poor and hostile business characterized by our position in the “easy “to doing business in Nigeria ,he lamented has not help matters, adding that for the Nigerian aviation industry to grow the Federal Government must provide conducive climate for investors to invest.
He also alleged that the exploitation by NCAA using multiple inspections of aircraft, training facilities and maintenance facilities equally impede aviation growth.
On financing model for Nigerian aviation , the managing Director of Katari System Limited ,stated that there should be targeted and effective subsidy from the Federal Government ,intervention guarantee funds with very low interest rate with longer tenure ,reduction of multiple taxation that impedes airlines revenue ,create easier access to foreign exchange from the Apex bank ;Central Bank of Nigeria(CBN)
Other solutions proffered as funding models for the country are: reduced Customs and Excise tariffs for local airlines, reduction of landing ,parking ,navigational charges for local airlines , lighting up airports and keeping maintaining them, as only very few airports operates 24 hours ,while other operates only visual flights.
On why the Federal Government initiatives did not achieve the desired results, he pointed out the Bank of Industry (BOI) initiative fund that was put forward did benefit airlines but the banks because there was poor monitoring of the process.
Speaking further, he cited a situation where aviation agencies which includes NCAA, the Federal Airports Authority of Nigeria (FAAN),the Nigerian Airspace Management Agency(NCAA) Nigeria Meteorological Agency(NIMET)and the Accident Investigation Bureau(AIB) are working as silos .
Katari appealed to stakeholders and participants at the gathering to work together if the Nigerian aviation must achieve any meaningful growth, adding that the aviation industry has become one of the pillars of micro economy of the Nigerian economy.
Earlier , the Publisher of and the Chief Executive Officer, Nigeria travelsmart.com and organiser of the colloquium, Mr Simon Tumba, lamented that the inability of Nigeria with harness the huge population the country has .
He posited that other countries such as the united, India maximise their huge population to the benefit of their respective aviation industries, wondering why Nigeria has not been able to do so.
Tumba called on stakeholders and participants at the colloquium to look into how Nigeria can tap into the huge population to contribute to the growth of aviation.
According to him, “Why is it that despite her population Nigeria has failed to harness it huge population. What is preventing Nigeria from miximise her population? He asked
To buttress his point, he cited the Population Reference Bureau statistics that projected that by 2050 Nigeria’s population would rise to 396 million and which would automatically make the third largest in the world in terms of population.
Tumba stated that with this population Nigeria could boast a very big market, which airlines over the world would want to operate
“Today, Nigeria is the world’s 7th largest in population. Guess what in 2050, Nigeria will be the third largest populated nation on earth. It’s a challenge and opportunity. Amongst the projected top 10 in the data is Ethiopia with a figure of 165 million in 2050. Surely we all know that Ethiopia is already pouncing and set for the dominance of Africa by then. What about Nigeria?” he asked

admin

See author's posts

Continue Reading

Previous: AIB, Stakeholders, Others To Amend 2006 Operational Rules
Next: Nigeria Lacks Strong Airline, Good Airport—Penninck, BASL Boss

Related Stories

Kila Calls For Public Inquiry Into Nigeria Air
2 min read
  • Aviation

Kila Calls For Public Inquiry Into Nigeria Air

May 30, 2023
 Flight Dispatcher Plays Critical Role In Flight Safety–Aviatrix CEO
2 min read
  • Aviation

 Flight Dispatcher Plays Critical Role In Flight Safety–Aviatrix CEO

May 29, 2023
CISLAC Calls  For Reversal Of Abuja, Kano Airports’ Concession In Nigerians Interest
2 min read
  • Aviation

CISLAC Calls  For Reversal Of Abuja, Kano Airports’ Concession In Nigerians Interest

May 25, 2023

Recent Posts

  • United Nigeria Airlines  Aircraft With 50 Passengers Skid Off Lagos Airport Runway
  • Ahon’s Appointment By Delta Governor A Testimony To Excellence–JIFORM President
  • NAPTIP Sacks  Deputy Director, 4 Officers For Serious Misconduct
  • Runsewe Mourns Dokpesi, Extols His Virtues
  • Obaseki Celebrates Osimhen, Alegeh, Omogiafo, Others For Winning National Awards

Recent Comments

  1. israelnightclub.com on Nigeria Immigration Service  A Major Investment Driver Of The Country  By James Sunday
  2. Abel Orukpe on FAAN To Constitute Task Force To Curb Activities Of Miscreants At MMIA
  3. Shinaba Abiodun on FAAN To Constitute Task Force To Curb Activities Of Miscreants At MMIA
  4. Nanji Tyem on FG Grants Tax Reliefs To TStv Africa
  5. Margaret on Disaster Looms In Aguda As Developer Begins Sand Filling Of Major Canal

Archives

  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • January 2015
  • July 2012
  • July 2011
  • February 2011
  • July 2010
  • February 2009

Categories

  • Agriculture
  • Airlines
  • Android
  • Appointment
  • Aviation
  • Award
  • BlackBerry
  • Business
  • Community News
  • Contact us
  • Crime
  • Culture
  • Design
  • Editorial
  • Education
  • Entertainment
  • Event
  • Feature
  • Health
  • Health
  • Healthe
  • Hospitality
  • International News
  • Interviews
  • iPhone
  • Judiciary
  • LATEST NEWS
  • Letter
  • Migration
  • News
  • News In Picture
  • Opinion
  • Politics
  • Presentation
  • Religion
  • Security
  • Slider
  • Speech
  • Sports
  • Technology
  • Tourism
  • Transport
  • Travelogue
  • Uncategorized
  • Videos
  • World

You may have missed

United Nigeria Airlines  Aircraft With 50 Passengers Skid Off Lagos Airport Runway
1 min read
  • Airlines

United Nigeria Airlines  Aircraft With 50 Passengers Skid Off Lagos Airport Runway

May 31, 2023
Ahon’s Appointment By Delta Governor A Testimony To Excellence–JIFORM President
1 min read
  • Uncategorized

Ahon’s Appointment By Delta Governor A Testimony To Excellence–JIFORM President

May 31, 2023
NAPTIP Sacks  Deputy Director, 4 Officers For Serious Misconduct
2 min read
  • Crime

NAPTIP Sacks  Deputy Director, 4 Officers For Serious Misconduct

May 31, 2023
Runsewe Mourns Dokpesi, Extols His Virtues
1 min read
  • LATEST NEWS

Runsewe Mourns Dokpesi, Extols His Virtues

May 30, 2023
Copyright © All rights reserved. | MoreNews by AF themes.