At the 29th League of Airport and Aviation Correspondents (LAAC) Conference, renowned economist, Bismarck Rewane, delivered a candid and forward-looking assessment of Nigeria’s aviation industry, urging stakeholders to embrace consolidation, efficiency, and innovation to unlock growth and profitability.
Rewane emphasised that industries in distress must consolidate to survive and thrive. Drawing parallels with Nigeria’s banking, insurance, and petroleum sectors, he explained that merging struggling entities can reduce average costs, expand profit margins, and improve competitiveness.
“Industries that are in difficulty should consolidate. The most viable would survive. The non-viable will merge, and it brings down the average cost,” Rewane stated.
He pointed to the creative, insurance, and telecom sectors as examples of industries that have embraced efficiency and are now experiencing rapid growth; some as high as 20 per cent annually.
Addressing the aviation sector’s struggle to access credit from Nigerian banks, Rewane was blunt saying that banks lend to efficiency, not sentiment.
“Banks don’t throw away money. They lend money to get invested,” he said.
He noted that global carriers like Singapore Airlines, American Airlines, and Lufthansa have succeeded because of their operational efficiency and innovation. Rewane expressed confidence that Nigerian airlines can follow suit if they adopt similar principles.
Rewane also touched on Nigeria’s $5 trillion infrastructure gap, clarifying that the figure represents inefficient deployment rather than outright loss.
“It was not efficiently deployed,” he explained, suggesting that better governance and strategic investment could reverse the trend.
In a pointed message to state governments aiming to run viable airports, Rewane urged them to focus on areas of competitive advantage and avoid wasteful ventures.
“Stop doing dumb things. Start doing smart things. And then start doing modern things,” he said, quoting fellow economist Fariz Akario.
Despite the challenges, Rewane remains optimistic about Nigeria’s aviation future. With the right reforms, he believes the industry can become profitable, efficient, and globally competitive.
His message was clear: efficiency is the currency of progress, and Nigeria’s aviation sector must embrace it to soar.