Mary Olowo-Sokeye: Aviation Can’t Fly Without Finance

The 29th Annual Conference of the League of Airport and Aviation Correspondents (LAAC) took centre stage today at the Providence Hotel, Ikeja GRA, Lagos, with a strong message on the urgent need to reform aviation financing in Nigeria.

Delivering a powerful keynote address, financial analyst Mary Olowo-Sokeye called for bold, innovative funding strategies to reverse the operational inefficiencies threatening the sustainability of the sector.

Themed “Financing Aviation in Nigeria: Risks, Opportunities and Prospects,” the conference drew a high-powered audience of policymakers, airline executives, regulators, financiers, and infrastructure experts. As the industry battles rising operational costs, forex challenges, and infrastructure decay, this year’s event was widely regarded as the most critical edition yet of the LAAC’s flagship gathering.

“Aviation is the lifeblood of trade and tourism—but without financing, it simply cannot fly,” Olowo-Sokeye declared. Standing in for Dr. Gabriel, a revered aviation expert who recently marked 52 years of service, she urged stakeholders to confront the sector’s funding shortfalls with urgency and creativity.

Olowo-Sokeye—who brings over two decades of financial experience, including work with GE Capital’s aviation division—outlined the stark contrast between Nigeria’s aviation performance and global standards. “Nigeria’s operational success rate stands at just 48%, far below the international benchmark of 81%,” she said. “This gap isn’t due to a lack of talent or passengers—it’s a financing problem.”

She cited key reasons for the poor performance: aging aircraft, inadequate maintenance, infrastructure deficits, and economic pressures such as fuel scarcity and exchange rate volatility.

Her presentation offered a clear breakdown of both traditional and non-traditional aviation financing models available to Nigerian operators.

Traditional Financing Models:

• Aircraft Loans – Secured loans using aircraft as collateral, offering tax advantages and full ownership benefits.
• Leasing Options – Wet, dry, and hybrid leases that lower upfront costs and offer flexibility, though they may increase reliance on foreign lessors.

Non-Traditional Financing Models:

• Equity Financing – Raising capital by opening up airline ownership to external investors.
• Debt Financing – Issuing bonds or taking institutional loans for expansion.
• Sale-Leaseback Arrangements – Selling aircraft and leasing them back to unlock cash while retaining control.
• Export Credit-Backed Financing – Using government-backed guarantees to access lower-interest loans and expand fleets.

“Nigeria has not fully leveraged export credit-backed financing, and it’s a missed opportunity,” Olowo-Sokeye noted. She called on the government and private sector to build the frameworks necessary to unlock this potential.

She also pointed to existing local support mechanisms such as the Power and Aviation Intervention Fund (PAIF) and the Central Bank of Nigeria’s N3 billion credit facility, urging operators to access available resources to shore up their operations.

Olowo-Sokeye offered a checklist for airline executives:

• Review financial health and liquidity.
• Secure collateral early.
• Understand repayment risks.
• Monitor fuel prices, inflation, and foreign exchange trends.

She didn’t shy away from the challenges ahead, warning that at least 14 Nigerian airlines have folded since 1990 due to poor financial structure and safety issues.

“Cost reduction should never compromise safety. Nothing destroys an airline faster than an accident,” she cautioned.

Citing Dr. Gabriel’s book, Cutting Costs Without Cutting Corners, Olowo-Sokeye urged attendees to adopt sustainable cost-saving strategies without jeopardising safety or compliance. “Everything I’ve said today is well captured in Dr. Gabriel’s book,” she added.

As the LAAC conference continued with in-depth panel discussions and networking sessions, Mary Olowo-Sokeye’s address stood out as a wake-up call for financial discipline and strategic investment across the industry.

“If we fix our financing, we can fix our aviation sector. The skies can be safer, our airlines more competitive, and our economy stronger,” she concluded.

@2025 The Ameh News: All Rights Reserved