“In crisis management, be quick with the facts, slow with the blame” –Leonard Saffir

Saffir’s quote above captures succinctly the management style of the Central Bank of Nigeria (CBN) leadership under Mr. Godwin Emefiele. While many commentators and watchers of the nation’s economy lament over challenges in various sectors that support economic growth, the CBN leadership devotes time to study the facts, dissect the same and make deft moves for rescue based on strategies that blend with our local peculiarities. Such is the experience with Nigeria’s troubled aviation sector. But recourse to the uproar on the current aviation sector challenges is important, if not necessary. The Lagos Chamber of Commerce (LCCI) Director-General, Dr. Chinyere Almona, was in the forefront of prominent persons to lament on the current troubles buffeting the aviation sector.

This came on the heels of the escalating prices of aviation fuel that have risen from an average N400 per litre in February 2022 to about N800 per litre in recent times. Expectedly, the LCCI Director rued the worsening problem, offered no suggestion for reprieve but made the commendable effort of calling for intervention. Indeed, the LCCI noted that a crisis such as that of the aviation sector is a matter of categorical imperative “because of the systemic importance of air travel for the conduct of trade and commerce across borders”. Following closely was the Nigeria Employers Consultative Association (NECA) which went a notch further to advocate for a Federal Government’s re-appraisal of monetary and fiscal policies. Understandably, the group also insisted that the aviation sector is qualified for targeted financing to facilitate economic activities in the country to, in their own words: “Boost economic growth and even avert imminent recession.”

Significantly, there is a security angle to the aviation crisis, considering the worsening safety issues of road travelling in most parts of the country, especially in recent years. Meanwhile, there is the growing consensus that the ailment in the aviation sector today has something to do with either policy inconsistency or strategic sabotage by external forces. NECA Director-General, Mr. Wale Oyerinde was also widely reported to have argued that: “While monetary policies aim to reflate the economy through the various interventions, the fiscal policies tend to create a bottleneck for the productive sector”.

Some commentators have, however, disagreed with this line of argument. Events reached a head when the airline operators had cause to openly call for the immediate removal of the 5% fuel surcharge collected by the Nigerian Civil Aviation Authority (NCAA) as part of measures to forestall a backlash and total shutdown of Nigeria’s airline operations.

The airlines’ body lamented that the rise in the price of aviation fuel has greatly increased their operational cost to over 130%. It was indeed for the same reason that they harped on the need to remove the fuel surcharge. There was tension everywhere for both the operators and air travellers, with many indulging in open blame games directed at the Federal Government. Prior to this chain of events, the National Assembly and the CBN had an interactive session with a view to getting the apex bank to lend a helping hand.

Ever since, the CBN management immediately swung into action, undeterred by the torrent of blames from stakeholders in the sector, attention-seeking civil society activists and opposition elements eager to pounce on the Federal Government at the slightest opportunity. Notwithstanding the deluge of lamentations, it is heart-warming to key stakeholders of the aviation sector that the CBN has stepped in with the disbursement of $265 million to enable the airlines to clear “outstanding ticket sales”, as recently as Friday, August 26th, 2022. The apex bank’s breakdown of the figure showed that the sum of $230 million was released as special FX intervention while another sum of $35 million was released through Retail SMIS auction.

It was a form of double-barrel disbursement. While authenticating the news of the funds release, the Director of Corporate Communications Department at the CBN, Mr. Osita Nwanisobi disclosed that the apex bank Governor, Godwin Emefiele and his team were deeply concerned about the aviation sector’s multiplicity of challenges and “what it portends for the sector and travellers as well as the country in the comity of nations.” I also read in the news that Mr. Nwanisobi, revealed that the CBN was not against any company repatriating its funds from the country, pointing out that the Bank was favourably disposed to an “orderly exit for those that might be interested in doing so.” The latest disbursement will see to it that both operators and travellers get reprieve. The CBN intervention will also end the fear caused by the threat of some airlines to withdraw their services owing to the unremitted funds for outstanding sale of tickets. On the whole, the CBN’s latest intervention in the aviation sector’s multiplicity of challenges, notably the outstanding sale of tickets, is a sweet relief in the middle of a worrisome development bedevilling such a strategic sector of national economic growth.