Business
Aviation Sector Rebounds As Airlines, Others Net N146.6bn In Nine Months
Between January and September last year, output in the aviation sector rose to N146.6 billion, from N114.2 billion recorded in the corresponding period of 2020.
This shows an increase of N32.2bn in the sector’s contribution to the country’s Gross Domestic Product (GDP) during the period under review.
According to the National Bureau of Statistics (NBS), aviation or air transport is one of the sub-sectors under the transport and storage sector.
Road transport, rail transport, water transport, transport services and post and courier services are the remaining five.
During the period under review, the contribution of the transport and storage sector to the GDP stood at N2.4tn which was driven by the economic performance of road transportation (N2.2tn), air transport (N146.6bn) and transport services (N62.4bn).
In the second quarter of 2021, the aviation sector’s output rose to N53.8bn from N51.3bn recorded in Q1 2020 and in Q2, the sector’s contribution to the GDP stood at N26.5bn, higher than the N21.3bn recorded in the corresponding period of the previous year.
The transport and storage sector grew by 41.61 per cent, year on year, in nominal terms in Q3.
This rate was relatively higher than the figure of -35.06 per cent recorded in the corresponding quarter of 2020 but lower than the 112.56 per cent in the previous quarter.
However, all the six sub-activities under transport and storage industry recorded positive growth rates in the third quarter 2021.
In Q3, transport activities contributed 1.57 per cent to nominal GDP, an increase from the 1.28 per cent recorded in the corresponding period of 2020, but lower than 2.09 per cent recorded in Q2.
In real terms, the sector grew by 20.61 per cent in Q3 2021, which represents an increase of 63.59 per cent relative to the same quarter of the previous year and a decrease of 56.20 per cent relative to the preceding quarter.
The contribution of the sector to real GDP in the Q3 2021 totaled 0.20 per cent, a rise from 0.18 per cent recorded in the previous year, and higher than the 0.13 per cent recorded in the Q2.
Meanwhile, the contribution of air transport to the GDP in Q3 surged to N66.3bn from N41.8bn recorded in Q3 2020.
Speaking on the development, an economist and a professor of Economics at the Olabisi Onabanjo University, Sheriffdeen Tella, attributed the recovery in the sector to the removal of travel restrictions that hindered air travel in the previous year.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.