Business
Ramping up AviaCargo market in Nigeria and beyond
By Francisca Emeka- Amaugo
Over the years, the Federal Government of Nigeria has been making series of efforts to put up structures geared towards transforming the country into an export driven economy and also a hub for agro-export in Africa.
In recent times, state owned cargo airports are springing up, with the overriding intent to stimulate the economy and to also ensure that Nigeria goods are sold to the outside world.
As at today, agro-cargo airports are being constructed by State Governments in Nigeria, even when some experts believe that this is a misplacement of priorities since important basic amenities are lacking in the region.
At present,over 10 State governors in Nigeria are focusing their energies on the construction of agro-cargo airports in the country, which they claim will create more employment opportunities and increase their Internally Generated Revenues (IGRs).
Though some stakeholders believe agro-cargo airports could transform the aviation sector into a major revenue earner, many of these airports are not strategically located, making it difficult to attract investors and business persons to them
Despite these efforts by the states and Federal Government, export of agric products through the airports, that is aviation cargo (AviaCargo) have remained in its lowest ebb.
Business analysts have, at many times expressed concern over the trend of foreign airlines departing Nigeria with empty cargo holds, despite the presence of ample exportable goods within the country.
Sadly, there have been instances where foreign airlines which had flown into Nigeria divert to other African countries, so as, not to depart empty. Expectedly, they leave such countries with loads of export products which they use to make up their load factor. For example, Kenya is known for its readiness to export flowers and other perishables products.
Other places these airlines transit into, in a bid to full its capacity are Angola, Algeria, Morocco, Egypt etc.
The list is endless and when we look at the south, exports of food and drink are very important, including coffee, grains and livestock. Likewise, textiles and clothing is also an important industry in most of the African countries. In Morocco, Tunisia and Lesotho, clothing, shoes and textiles are the biggest exports. Equally, cotton is vital to the economies of Mali, Togo and Benin.
Stakeholders are therefore, of the view that government needs to come out boldly and assist Nigerian agro-exporters in facilitating the processes of export by providing the needed financial instrument in a bid to increase the volume of agro-produce exports within Nigeria and to other international markets.
Despite these calls by stakeholders, successive governments seem to have failed to facilitate more export by air despite the availability of goods in the country
A reflection of the development shows that the sector’s share of total trade volume appears abysmal, as most aircraft leaves the country almost empty.
Be that as it may, the time to ramp up aviation cargo export is not late as there are many ways out.
First, the agencies that monitors the aviation cargo sector should be on top of its beat and ensure that there is no rejection of agro-export from Nigeria, a situation that would increase the country’s exports and earnings. This is where education, awareness and enlightenment come in.
There should also be a committee created by the government, which responsibility should be to streamline the process of agro-export in the country and create a seamless operation from the farm to the airplane before it’s ferried abroad.
Government on its part and private sector organisations should provide facilities for cargo processing, packaging, certification, laboratory services, data gathering for traceability of products and produces etc.
Corruption should be discouraged at all our ports and the issue of multiple taxation should be addressed, such that security personnel at the checking points be pruned to few checking points. This will help in facilitation of cargoes and also weed out bribery and corruption.
The government should also ensure that standardization, modernization and procedures are being carried out to make operations simple and to also reduce bureaucratic procedures that makes imports clearing and export forwarding friendlier to ensure the acceptability of international values.
When these things are put in place, Nigeria which is currently at number five in Africa, when we ought to be number one, will bounce back as the journey to number one aviation cargo hub Africa.