Nigeria Is now Africa’s fastest Growing Aviation Business -Demuren

Few weeks after its economic rebasing shoot it up to become Africa’s largest economy, Chief Executive Officer of EAN Aviation, Segun Demuren, has declared Nigeria as the fastest growing  aviation business in Africa with more new and pre-owned aircraft delivery than South Africa as at 2013.

Speaking at the recently concluded second Nigerian Business Aviation Conference organised and hosted by EAN Aviation in Lagos, Demuren noted that the country’s private jet fleet is larger than the commercial aircraft fleet, adding that “Growth has been driven predominantly by the oil and gas industry however other sectors including finance, manufacturing, telecoms and agriculture are all contributing to a market which is set to grow by 20 per cent this year.”

The conference which welcomed over 120 delegates, about 20 per cent more than last year was designed to provide a platform for analysing and reviewing Nigerian business aviation and to stimulate discussion about what is needed to support continual, sustainable development.

Demuren however said that despite the recorded growth, the maintenance and service support still remains a major challenge. Other challenges identified include the fact that there are no accurate figures for the amount of jets operating in Nigeria and any aircraft put on a 5N (Nigerian) registry will lose asset value by as much as 25 per cent yet earn higher insurance premiums, up to 35 per cent or even higher in some cases because of the operating environment.

However, Captain Nogle Meggison, Chairman of the Airline Operators Committee argued that the government has been supporting expansion as a result of the removed import duties on new jets; the signed Cape Town convention reassuring lessors about asset security; investment in new infrastructure including a private jet terminal that opened last year in the political centre Abuja as well as the no-time restriction on the amount of time a foreign registered private jet can stay on Nigerian soil.

Nevertheless, Melanie Humphries Head of Aviation Corporate and International Banking Investec said while authorities seem to be making progress, aviation financing doesn't seem to be following suit as "Most aircraft in Nigeria are cash bought."

She posits that flexibility, partnerships with local banks and simple financial engineering could provide solutions to the lack of aviation finance currently available.

“Aviation is tough and locals need to take it more seriously, participate in its development, and need to maintain a long term vision recognising that it takes investment in time and money to make sure that we grow this vibrant and vital subsector of the economy," Demuren concluded.