Nigeria: Aviation industry losing N21 billion monthly to Covid-19

Nigeria’s aviation industry has been losing roughly N21 billion (US$57 million) per month since the country’s Covid-19 outbreak started, a minister has said. 

Minister of Aviation Hadi Sirika announced the findings on Wednesday at the daily meeting of the Presidential Task Force on Covid-19.

The minister explained that the impact of the pandemic was affecting every part of the aviation sector.

“We are the worst-hit than any other sector. Based on the trend of events before COVID-19, the total loss is about N21 billion approximately plus about N3 billion tangentially and this is divided in this form: N7 billion for aviation agencies which they lose in a month, N10 billion for airline and N4 billion for ground handling, catering and others and the tangential N3 billion," he said.

Airports in Nigeria have been closed from March 23rd, with the government initially announcing a one month shut down, which was extended by a further two weeks towards the end of April. 

On Wednesday afternoon, it was announced all non-emergency flights will be grounded for an additional four weeks. 

Mr Sirika said that the effects on the aviation industry put an estimated125,370 jobs at risk, as well as potentially wiping $885 million off Nigeria’s GDP.

The minister explained that up until the outbreak of Covid-19, aviation had been Nigeria’s fastest growing sector. Now, it is unclear whether several firms will make it out of the crisis at all. 

“This is the situation of civil aviation, it is a pathetic one, we are all crying and I can guarantee you several airlines are not going to come out of it, unfortunately”. 

Photo: Premium Times