Festus Keyamo, the Minister of Aviation and Aerospace Development, has expressed optimism that the initiation of Lagos-London flight services by Air Peace will alleviate the strain on the Naira in relation to the Dollar.
He made this statement at the inaugural flight ceremony of Air Peace at Terminal 2 of the Murtala Muhammed International Airport (MMIA) in Lagos on Friday night.
Keyamo assured that the government, led by Bola Tinubu, is committed to supporting local operators like Air Peace in securing aircraft lease arrangements. He further stated that the presence of Air Peace on the London route will eliminate issues with trapped funds, thereby ensuring the airline’s continuous operation.
The minister emphasized that as a local company, the government does not need to repatriate the sale of Air Peace’s tickets to the Central Bank of Nigeria (CBN). This, he believes, would make Nigeria sufficiently liquid in terms of foreign exchange to repatriate those funds.
Keyamo explained that the influx of airlines into Nigeria often leads to a significant repatriation of funds, which puts pressure on the Naira as they have to seek for dollars. However, this new development with Air Peace, a Nigerian company that deals and buys in Naira, eases the pressure on the Naira.
He also highlighted his major objective of bringing the Maintenance, Repair, and Overhaul (MRO) into Nigeria, which he believes is key to unlocking the industry. He mentioned that several foreign entities, including the Chinese, Arabs, and Americans, are interested in investing in Nigeria due to the new approach of governance towards investors.
Addressing the issue of why airlines that previously operated the London route did not survive, Keyamo attributed it to the lack of access to aircraft on favorable terms, rather than the politics of the Bilateral Air Services Agreement (BASA). He expressed hope and prayers for the success and sustainability of Air Peace’s new venture, acknowledging the significant expense and potential marginal profit or loss involved.
Finally, Keyamo acknowledged that Nigeria had previously been blacklisted when it comes to dry lease arrangements due to past experiences of the lessors.
