Most Aviation Sector Challenges Result From Absence Of Good Corporate Governance Practices
The President of Aviation Safety Round Table Initiative (ASRTI), Air Commodore Demola Onitiju (Rtd) says “most challenges of Nigeria’s aviation sector are results of absence Of good corporate governance practices.”
Speaking in an interview held on the sidelines of the 9th Airport Business Summit and Expo held in Lagos on August 20 to 22, 2024 under the Theme: “Airport Viability is Key to Successful Aviation Business Ambition,” Onitiju said “unfortunately, transparency is alien to most of our airlines and they don’t have good corporate governance practices. That is to some extent, why we have reservations about the call for suspension of some charges from the agencies. There are many things that the airlines should have in place, that they don’t. They include good corporate governance, a maintenance reserve account to ensure maintenance never suffers, insurance accounts, training accounts and regular audit to confirm their financial health status. Where these do not exist, you cannot expect good performance.”
On the agencies, he said the various revenues that accrue to the aviation agencies are meant to strengthen infrastructure and improve services but that the rot in the society has affected various segments of the aviation sector. The agencies, he said, are supposed to be above board.
He frowned at the fact that aviation agency boards had not been constituted for over ten years. “The purpose of boards, were to guide the policy direction to help the agencies function. The boards when constituted, will ensure accountability and transparency. Misappropriation of funds generated by the agencies will reduce. Boards will ensure that heads of agencies stay within the line of their operations,” he explained.
On the proposed airports concession, Onitiju said “concession is good if it is for the common good and if we will be transparent about it. It ensures that only those with requisite competence are allowed to run the business. Government or political interference will be reduced to the barest minimum because it will be difficult to ask for undue favours.”
Speaking at the panel session of the summit, Onitiju made a case for insurance and maintenance of runways at the airports in Nigeria as part of safety enhancement measures.
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