Prof. Obiora Okonkwo, from United Nigeria Airline, calls for a three-percent loan interest rate for local airlines to support the sector’s growth. He lauds the government’s progress in creating favorable conditions and urges for a streamlined loan process to mirror global best practices. Reducing financial burdens on operators can significantly enhance the Nigerian aviation industry’s contribution to the economy.
Prof. Obiora Okonkwo, the Founder of United Nigeria Airline, has praised the Federal Government for fostering a supportive environment for domestic airline operations. In a statement on the airline’s 4th anniversary, he highlighted the distinction of Nigeria’s free market approach, compared to much of Africa where over 70% of airlines are state-owned.
Okonkwo commended President Bola Tinubu for emphasizing the aviation sector and deemed the goal of a $1 trillion economy within that sector achievable, thanks to current conditions. He stated, “The foreign exchange policy introduced since the inception of the President Tinubu-led administration has revolutionised airline operations.”
Highlighting the difficulties faced by airlines in accessing foreign currency, he noted that these issues have been largely addressed. Okonkwo also expressed his gratitude to Aviation Minister, Festus Keyamo, for measures that safeguard local airline interests.
Recalling the airline’s launch amidst the COVID-19 pandemic on February 12, 2021, he urged authorities to implement a streamlined loan system for the aviation industry, emphasizing global best practices. He proposed a reduction of loan interest rates to three percent, contrasting with the 30 percent currently charged by financial institutions.
Okonkwo stressed that the failure to adequately support local operators results in fierce competition for loans, which are difficult to secure at manageable rates. “If you have to go to the bank today, it should not be anything less than 30 percent. The profit is very minimal,” he stated.
In summary, Prof. Okonkwo urges the Nigerian government to create more favorable loan conditions for local airlines, aligning with successful global practices. By suggesting a three-percent loan interest rate, he believes that local operators can significantly contribute to achieving the proposed $1 trillion aviation economy target, enhancing the sector’s growth and sustainability.
Original Source: gazettengr.com
