The Akwa Ibom State Government has announced that it has recorded over N2.328 billion as return on investment from its aviation sector within a period of two years.
The disclosure was made by the state government while giving an account of its investments and revenue generation drive in the aviation industry, which has been one of the key economic pillars of the state.
According to the government, the impressive return was generated from various operations within the aviation value chain, including flight services, charter operations and other ancillary aviation businesses.
The state government noted that its deliberate investment in the aviation sector over the years is now beginning to yield significant financial returns, thereby justifying the huge capital that was committed to the sector by previous and current administrations.
It would be recalled that Akwa Ibom State pioneered the establishment of a state-owned airline, Ibom Air, which has grown to become one of the most reliable and efficient airlines in the country.
The government explained that Ibom Air, which started operations a few years ago with few aircraft, has now expanded its fleet and route network, thereby increasing its profitability and contribution to the state’s internally generated revenue.
In addition to Ibom Air, the state government has also invested heavily in aviation infrastructure, including the Victor Attah International Airport and the Maintenance, Repair and Overhaul (MRO) facility.
The MRO facility, which is said to be one of the most advanced in West Africa, has attracted patronage from both local and international airlines seeking quality aircraft maintenance services.
Government sources disclosed that the N2.328 billion return was realised after careful financial evaluation of revenues accruing from airline operations, airport charges and other aviation-related services within the two-year period under review.
The state government attributed the success to prudent management, transparency and the professional handling of the airline’s operations without undue political interference.
It stressed that unlike many state-owned enterprises that are usually mismanaged, Ibom Air has been run as a purely business enterprise with a corporate governance structure that allows for efficiency and accountability.
The Commissioner for Information and other government spokespersons noted that the airline’s consistent profitability has made it a model for other state governments that are considering investing in the aviation sector.
They also pointed out that the aviation sector has created thousands of direct and indirect jobs for Akwa Ibom indigenes and other Nigerians, thereby reducing unemployment and boosting the local economy.
Apart from job creation, the sector has also contributed to improving the ease of doing business in the state, as investors and business travelers now have easy access to the state through regular flights.
The government further revealed that Ibom Air’s commitment to safety, on-time performance and excellent customer service has earned it several awards and recognition from aviation regulatory bodies and industry stakeholders.
The Victor Attah International Airport, which serves as the operational base for Ibom Air, has also witnessed increased passenger traffic and cargo activities, leading to higher revenue for the state.
It was gathered that the state government is planning to further expand the aviation sector with the addition of more aircraft, opening of more domestic routes and eventual commencement of regional and international flights.
The expansion plan, according to sources, is expected to increase the revenue base of the state and position Akwa Ibom as a major aviation hub in the Gulf of Guinea.
Stakeholders in the aviation industry have commended the Akwa Ibom State Government for its foresight and consistency in investing in aviation, describing it as a sustainable investment that will benefit future generations.
They noted that while many states are struggling to pay salaries and meet basic obligations, Akwa Ibom has been able to turn its aviation investment into a revenue-generating asset.
Financial analysts have also described the N2.328 billion return as a positive indicator that state-owned businesses can be profitable if managed professionally and with clear business objectives.
They advised other state governments to study the Ibom Air model and replicate the same level of discipline and corporate governance in their own investments.
Meanwhile, the Akwa Ibom State Government has reiterated its commitment to continue to support the growth of the aviation sector through policy consistency and further investments in infrastructure.
The government assured that all revenues generated from the sector would be ploughed back to further develop the sector and to fund other developmental projects in the state.
It called on Akwa Ibom people both at home and in the diaspora to continue to support and patronize Ibom Air, as it remains a pride of the state and a symbol of what is possible when vision meets purposeful leadership.
