By Dickson Omobola

Anita Mendiratta is Special Adviser to the Secretary General of the World Tourism Organisation, UNWTO, Zurab Pololikashvili. In this exclusive interview, Mendiratta discusses the possibilities and impossibilities surrounding the recently signed Memorandum of Understanding, MoU, between Federal Government and aircraft manufacturer, Boeing.

Background:

I have not seen the specific paperwork itself, but the principles are clear, and this is a formal partnership. Yes, it is an MoU, but it will be supported by very clear work plans and measurable metrics put in place by Boeing. This is not the first time that Boeing has done this. It has done this with, for instance, Japan, China, the United Arab Emirates, UAE, India, South Korea and Saudi Arabia. So, they have a model on how they develop ecosystems for aviation to uplift countries and regions. Boeing will be applying that same model with very specific deliverables in terms of performance to ensure that the ecosystem is optimised through airlines, airports, air traffic control, the whole ecosystem. Once again, I have not seen the actual documentation. That is obviously something held in confidence between Nigerian government and Boeing, and they need to, as mentioned, put in place a very solid work plan that gives Boeing confidence that this MoU is important because it is an agreement in principle. Based on that, it is really about partners having agreement of shared vision, shared values and shared determination to make the partnership work. You can put a contract in place, but if you don’t have those principles in place and those values in place, it will never come to life fully in terms of its potential.

Relevance

I think the MoU is so important for not only aviation in Nigeria but aviation in Africa, both from the point of view of travel and from the point of view of trade. It is a statement of absolute seriousness of intent of Nigeria in terms of its ability to utilise aviation as a vital pillar to build the economy and society of the country and of the region. Nigeria being a hub unlocks the opportunity for Africa itself. Boeing is a name that people trust. As much as Boeing is facing many challenges, it has many strengths and it knows Africa. 70 per cent of the aircraft that fly in Africa is Boeing. Boeing has been on the continent for decades, so it understands how Africa works. For it to put its name alongside Nigeria is an endorsement of the opportunity that exists in Nigeria to be able to build Nigeria and the continent through aviation. It is very much an expression of Boeing’s commitment to helping in that process. There is the statement of intent and the best of intentions behind the MoU.

Beyond signing this document, how can it be supported to enable aviation to thrive in Nigeria?

I think a vital mechanism that needs to be put in place to support the MoU is a clear implementation strategy and work plan with metrics against defined milestones. But this is not all. An important part of this is the leadership – putting in place very solid, qualified leadershp, qualified not only from the point of view of aviation in terms of technical understanding, commercial understanding, but also qualified leadership that understands the power of a partnership like this, being able to unblock what Nigeria represents genuinely as a powerhouse on the continent. The ability to recognise the diplomatic opportunity within this MoU is enormous and what it represents as a promise to Nigeria and to Africa to connect with the world. That leadership capability from a diplomatic perspective is important. The ability to work internationally with such leading organisations like Boeing is vital. The same way in which Boeing needs to absolutely, which they do have, have leadership in place, working with Africa for Africa to make this work, understanding not just aviation, but how best to unlock the potential in Africa. The plans are great, the MoUs are great, but ultimately this is about the people who are going to bring it to life. And to bring it to lives, there is need for a leadership that is applied behind this, leadership that is very honest of the challenges, very honest of the eyes that are watching it to ensure that it does deliver, very honest to expectations and also very honest to the fact that this cannot turn Nigerian aviation around in the short term. This is a journey that needs to be consistently followed through on, but the first step is absolute clarity in what it seeks to achieve, how it seeks to achieve it and through whom. This is where, again, the faces and the handshakes behind the MoU that are going to deliver on the work plan will be vital to its credibility, sustainability and power to inspire people to support it.

The statement from Nigeria’s Ministry of Aviation and Aerospace Development identified some key things that the MoU touches on which include but are not limited to the facilitation of aircraft acquisition as well as airport and maintenance, repair and operation, MRO, development. Is it doable?

Naturally I cannot answer that affirmatively or negatively. These are terms that are between Boeing and Nigeria. Quite honestly, it is very difficult now for many countries to lease airlines because of the demand for aircraft for both travel and trade and the surge that we are seeing as the world is recovering from COVID and all of the aircraft being grounded. We have also seen that Boeing has had challenges in their deliveries to their own customers because of the reductions of momentum of production that are taking place in the Boeing factories that many airlines around the world and many countries are trying to find and lease aircraft. Thankfully, the global aviation network does have leasing operations, but the actual ability of Boeing, for instance, to be able to support a country in their leasing ambitions, I would not be the right person to answer that question.

Other available options

There is such a wonderful period of recovery taking place in global travel and in cargo. Thankfully, after all of the trauma we all went through with COVID and the impact that it had on economies and societies, the ability of the aviation community to meet that demand is under great pressure right now. So, there are many options. There are the options of refurbishing old aircraft, for instance, which Emirates has had to do as it is having to rework their delivery expectations from Boeing. There are leasing options airlines are able to look into. So, there are solutions that can be found. It is a delicate time right now in that aviation, as you know well, is a highly complex industry because there are literally thousands of moving parts, both in the aircraft but as well as across the ecosystem, to make sure that we can get aircraft to fly safely at the frequencies, the routes, the pricing that we need them.

What are the anticipated economic benefits for Nigeria?

In the immediate term, the revenue generation that will come through being able to unlock aviation, the employment that will come through and the opportunity itself. I mean, if we look at it at the moment, there is so much opportunity that already exists. We have many government funded airports in Nigeria and many domestic airlines. There are also 22 foreign carriers that are already working with Nigeria and through Nigeria. The Nigerian civil aviation is already well-constructed and has the potential there. To unlock that is going to unlock the opportunity to generate revenue, bring in more investment and create more jobs. That is absolutely vital. What is also very interesting and important is the indirect impact that this will have. Because by implication, by bringing in more travellers, you are unlocking the tourism economy. By bringing in more trade, you are unlocking supply chains and productivity and manufacturing capability. Again, it is a stimulus and aviation is like striking a match and suddenly starting a flame that unlocks the ability of others to join in what is going to be an incredibly powerful source of energy for the country. There is the direct benefit, absolutely, but the indirect is enormous. Equally, that will stimulate the entire continent. We say that the International Civil Aviation Organisation, ICAO, which is the United Nations entity that is involved in civil aviation, is saying that by 2038, we could see a doubling of passenger numbers to 300 million passengers annually in Africa. That is massive. We are looking again at Nigerian growth held at over 50 million passengers by 2040, and we are currently at only 2 million travellers going outbound. So, if you magnify the potential of that tourism economy, it is enormous. So, it is all there for the taking. It is just about making sure that we commit to, again, a shared vision, have a plan in place, put the right partners in place and stick to it. It is so important that these initiatives be protected to allow them to be able to get the support and the focus that they require without disruption.

Bi-lateral agreements

This comes very much into the ability for bi-lateral agreements to be put in place. For instance, many airlines work together through codeshare agreements. There are opportunities for codeshare agreements to be looked at, to be able to support route development between Nigeria and other destinations – primary and secondary destinations.

People find solutions, not MOUs

Any airline in the world, if it has a genuine desire to work to unlock the aviation industry and the opportunity for economies and societies and communities through aviation, they will find a way to make it work. It is not only about the aircraft. It is not only about the airports and air traffic control, it is the leaders across aviation that work together to connect the world through places, products and people. It is not about the aircraft on its own. For the domestic carriers if they want this to work, they will find a way to make it work because people find solutions, not MoUs. That’s why this MoU between Boeing and Nigerian government is a very important starting point. Through strong, visionary, focused leadership, as seen through this MoU, economies and communities across a country, a continent and the world, have the potential to thrive, now and for the long-term.