Cabotage Act To Generate N500bn

Former president of Nigeria Bar Association (NBA), Olisa Agbakoba (SAN) says the Nigerian aviation sector can generate over N500 billion in the next five years under Cabotage Act.

Agbakoba who stated this in an interactive session with newsmen, said he was working on a bill that will use Arik Air, Air Nigeria and First Nation Airways as pilot carriers for the project.

The bill titled, “Fly Nigeria Act” is akin to the United States Fly America Act which requires federal employees, consultants, contractors and others performing United States government financed air travel to use US flag carriers.

“If the Cabotage Act is in place, which will be a fall out of the National Aviation policy, the aviation industry will experience a new lease of life in terms of policy, infrastructure and market potentials,” he said.

According to him, Nigerian carriers cannot grow if there is no enabling legislation, such as Fly Nigeria Act, that will curb the capital flight that is being experienced in the sector.

It described the Fly Nigeria Act as a win win situation for Nigerian carriers, stressing that the cabotage regime (Fly Nigeria Act) would generate revenue and create jobs in the aviation sector.

“The removal of fuel subsidy has raised serious social implications that cannot be ignored. Government can look into vital sectors that will save the country about N5 billion and also create jobs for millions of Nigerians. The shipping and aviation sectors have been strongly recommended as areas where it can plug loopholes, develop and reform to achieve the desired results.

“Aviation cabotage is the framework that will trap and keep resource flights without hampering Nigeria’s international aviation obligations. Aviation cabotage essentially seeks the protection and promotion of indigenous operators and actors in vital sectors of the economy to enhance national economic development”, he said.

Agbakoba therefore solicited the cooperation of government officials, airline operators and other stakeholders towards the quick passage of the bill.