How not to waste resources on relocation

Published: Sunday, 6 Jul 2008

The Federal Government’s recent order, asking all parastatals to relocate their administrative headquarters to Abuja, appears to have pitched aviation operators and other stakeholders against the government, as David Amuwa reports.

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Director General, Nigeria Civil Aviation Authority, Dr. Harold Demuren

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Managing Director, FAAN, Mr. Richard Aiseubeogun

when the Federal Government’s order to all parastatals under the aviation ministry to relocate their headquarters to Abuja has come recently, little did the government know that the decision would steer virulent reactions from the aviation sector. In about four weeks, the decision courted more controversies than the government envisaged.

The furore generated by the directive has pitted the government against operators and stakeholders, underlining a clear division of opinions on the workability of the directive. Stakeholders in the aviation industry are currently debating the pros and cons of such a significant move, while aviation workers have been pondering on the implication of such a wholesale movement.

The fear in the aviation circle is that the recent move may end up the way of the previous policy somersaults by the government.

Most of the stakeholders have been questioning the rationale behind the directive. According to them, more than 80 per cent of aviation business and revenue comes out of the Lagos airport. Some data from the Operations Department, Federal Airports Authority of Nigeria have been quite revealing, stressing the apparent illogicality of moving the headquarters of parastatals that are wholly Lagos-based to Abuja. For instance, in the first quarter of 2008, operations at the Murtala Muhammed Airport, Lagos January record shows local and international passengers traffic peaking at 204,186 and 180, 811 respectively. It recorded 168,082 and 154,806 for both local and international, respectively, in February, while both stood at 178,290 and 190,062 in March. Comparatively, Nnamidi Azikwe Airport, Abuja had 178,254 (domestic), 28,571(international) in January, 177,943 and 22,063 in February and 182,304 and 33,289 in March, respectively.

Aircraft movement analysis stood at: MMA 5,181 (domestic), 2,077 (international) in January; 4,420 and 1,797 in February ;and 4,705 and 1,969 in March. NAA, on its part, had 2,962(domestic), 292(international) in January, 3,038 and 308 in February and 2,882 and 270 in March.

Also, analysis of cargo activities showed that MMA had (both local and international) 8,587,606 in January, 10,163,311 in February, and 10,481,078, while NAA had 467,019 in January, 477,873 in February and 364,858 in March, respectively.

The Managing Director, FAAN, Mr. Richard Aiseubeogun, probably underscored the need to concentrate operational focus at the place where the bulk of the sector‘s revenue comes from, in a speech delivered at the inauguration of MMA‘s automation project recently, saying, ”It is a known fact that virtually all our airports, including the commercially viable ones, are under-utilised and therefore, do not generate enough to sustain them appropriately. It is also a known fact that of the 22 airports managed by FAAN across the country, only four are commercially viable and generate the revenue with which the remaining 18 airports are maintained.”

A source in FAAN further revealed to our correspondent that over 70 per cent of the revenue from the four acclaimed viable airports come from MMA.

The source said, ”From the foregoing, it seems imprudent to relocate the headquarters of aviation parastatals from Lagos to Abuja.”

Besides, the recent efforts by technocrats in the aviation industry to raise the profile and operational rating of the MMA have been cited as a key reason why the relocation directive would stand logic on the head. The technocrats, who have made no secret of their plan to make the MMA a hub for air transportation in Africa, have described the recent move by the government an inexpedient one. The plan, if allowed to be pursued to a logical end, has been identified as ”a realistic goal, which will put the country in the forefront of aviation practice in Africa” by an aviation expert.

However, the recent relocation order, if allowed to be effected, according to experts, will scuttle whatever plans have had been put in place to realise this worthy goal.

Aviation experts have also criticised the hurried manner in which the directive came, saying it left no room for proper planning. For instance, essential facilities like office space and accommodation for workers are not yet in place. The implication is that the government will have to spend billions of taxpayers‘ money to provide such facilities in Abuja, the experts said. They also analysed its economic import, saying it would amount to a sheer waste of resources – as the huge capital outlay that would go into putting the necessary infrastructure in place could be put to better use. Their argument is based on the fact that as there is nothing wrong with facilities on ground in Lagos. Aviation stakeholders like the President of Aviation Round Table, Capt. Dele Ore, had variously complained about the serious dearth of manpower in the industry. Ore said that government had stopped training pilots since 1966, with the few Nigerian pilots on the ground getting close to their retirement age of 65.

Also, the Director General, Nigeria Civil Aviation Authority, Dr. Harold Demuren, stressed the need to plough more money into manpower development, instead of a fruitless venture of relocation. According to him, with nothing less than between six and eight million naira required to train a pilot, the country would do well to put more money into this area, rather waste it on relocation.

An engineer and an Abuja-based aviation stakeholder, Mr. Farouk Abdullahi, said, ”Aviation is globally recognised as a catalyst for economic development, which may explain why various governments around the world pay close attention to the provision of necessary infrastructure and policy formulation that engender and sustain air transport development.

”It is therefore with this background that one finds it difficult to define the recent reports, indicating that the Federal Government is planning to move the headquarters of aviation agencies to Abuja. Besides the enormous financial cost that will be required to effect this relocation, which in any case can be channelled to the cash strapped industry for provision of infrastructure and capacity building, the decision is fraught with danger.”

On his part, the Secretary-General, Aviation Round Table, Mr. Sam Akerele, said, ”Considering frequent summons heads of aviation parastatals receive to come to Abuja, one is tempted to conclude that the relocation may be of advantage to the industry as heads of parastatals under the aviation ministry would have enough time to concentrate on their jobs. Nevertheless, there are serious concerns. Lagos is the nerve centre of the aviation industry; it will be difficult to monitor activities going on in Lagos from Abuja. The projections of aviation technocrats to make MMA the hub of air transport in Africa may be hampered by this relocation because all the airlines have their headquarters in Lagos. Since over 80 per cent of aviation business transactions take place in Lagos, a strong team must be maintained in Lagos.” He also expressed concerns over the cost implications and the welfare of workers.

He said, ”It is very important to make adequate budgetary provisions for the movement, according to the level being envisaged. Government will have to acquire a huge expanse of land, rear up befitting structures – not mushroom buildings. Workers must not be subjected to demeaning conditions witnessed when the federal workers relocated to Abuja in the early 90s. Relocation of affected civil servants should be spread over a 12-month period or more.”

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