The Nigerian aviation industry attracted $4 billion foreign direct investment (FDI) in 2016.
In 2010, $6 billion came to the sector; $7.1b in 2012; $5.6b in 2013; $4.6 billion 2014 and $3.6 billion and $4.4 billion in 2015.
Aviation consultant and chief executive officer of RTC Advisory Services Limited, Mr. Opeyemi Agbaje who reeled out the figures at a colloquium held in Lagos today said FDI in the global aviation industry was $1.764 trillion in 2016 while $59.373 billion came to Africa within the period.
Delivering a paper entitled ‘Vision 2050: How to fast track Nigeria’s Aviation’ Agbaje however said what Nigeria attracted during the period indicated that the country did not encourage private participation adding that the sector would require $50 billion in the next 30 years.
For Nigeria to attract much, he said the country needs a stable macroeconomic environment and should be forward looking in its activities.
“It requires a stable macroeconomic environment; forward-looking and proactive policy; a clear and compelling vision for the industry shared by all stakeholders including government and the private sector; and regulation that seeks to foster industry transformation,” he stressed.
He said the federal government could not solely provide all the infrastructural gaps in the country’s aviation industry, insisting that the answer to Nigeria’s aviation industry was DFI.
The consultant said Nigerian transport industry would require at least $800 billion in the next 37 years to address the infrastructural gaps in the system while the Nigerian aviation industry would require $50bn within the period.
He emphasised that the Nigerian economy in 1999 was $57 billion while it grew to $110 billion by 2013, but noted that by 2016 the growth declined.
According to him, all forms of transportation contributed 2.88 per cent to the Nigerian economy in 1999, but nosedived to just 1.4 per cent of the nation’s economy, stressing that within the period, the Nigerian economy had grown ten folds while the transportation industry had continue to decline.
Agbaje noted further that there have been shifts in the structure of the Nigerian economy over the years sector, but insisted that for the country to be rated among the best, it should improve on the infrastructural deficits in the system.
Agbaje further explained that Nigeria had become a more diversified economy especially in the domestic production, but the Federal Government was yet to diversify from dependence on crude oil.
“The entire transport system is not keeping space with the Nigerian economy. From 1999 to 2016 the total gross domestic product (GDP) was $1.6bn and was $6.1bn by 2016.
“Our government still relies on crude oil, but the private investors have diversified from the oil economy. The entire contribution of transport sector to the GDP in Nigeria is 1.4 per cent, but this has been on the decline in recent time.
“Out of this figure, the contribution of aviation to the entire transport sector is merely 5.7 per cent while road transport gulped 86.78 per cent, water transport is 1.4 per cent and rail is 0.03 per cent. The evidence of government’s incapacity is so glaring, yet, the government thinks it can solve every problem in the country,” he said.