ABUJA, Nigeria (VOICE OF NAIJA)-The Federal Government has been advised to strengthen financial oversight of domestic airlines through regular audits aimed at assessing their liquidity positions and ensuring the long-term sustainability of the aviation sector.
The government was also cautioned against introducing additional tax burdens on the aviation industry, particularly aviation training institutions, which the National Revenue Service (NRS) reportedly plans to include in tax collection under new reforms.
Speaking in Lagos at a seminar organised for graduating students of the Lagos Aviation Academy (LAA) themed ‘Connecting Talents to Opportunities,’ the Group Managing Director of Finchglow Holdings Ltd, Bankole Bernard, said stronger regulatory scrutiny of airlines financial health would help prevent the misuse of operational funds while encouraging fleet expansion and job creation.
According to him, the aviation sector is highly regulated globally, and Nigerian regulators should adopt a more proactive monitoring approach similar to the Central Bank of Nigeria’s oversight of commercial banks.
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He said such supervision would discourage airline operators from diverting company funds for personal use and ensure resources are directed toward operational growth.
“The government should increase its level of audits on airlines so that there is clarity about their liquidity position. There should be constant audits that reveal their financial strength.
“If an airline expands its fleet and routes, it automatically creates more employment opportunities. Regulators need to closely monitor operators and identify challenges affecting their growth projections,” he said.
He added that the International Air Transport Association (IATA) carries out similar audits on member airlines, noting that aviation businesses in other jurisdictions are routinely subjected to financial reviews to assess their solvency and operational capacity.
He maintained that stronger financial oversight would improve the survival rate of Nigerian airlines and enhance industry stability.
Bernard also warned that higher taxes and charges on aviation businesses could further strain an industry already facing high operating costs and foreign exchange pressures.
He cited concerns over taxation affecting aviation training institutions, insisting that specialised aviation schools should continue to benefit from educational tax exemptions.
According to him, aviation training institutions are essential for producing skilled manpower for the sector and should be supported with policies that promote growth.
He noted that operating costs are already high and urged government agencies to consider reducing the burden on aviation businesses rather than increasing it.
The Head of School, LAA, Bolaji Durajaiye, said the institution had trained more than 5,000 students since its establishment nine years ago.
He said many of its graduates now work in airlines, travel agencies and other aviation-related organisations globally.
He added that the academy had achieved its founding vision of impacting lives and creating employment opportunities.
He further advised graduates to prioritise continuous self-development and employability.
Some alumni at the seminar described their experience at the academy as transformative.
One graduate, Chinwendu Gemma, said the training exposed her to opportunities within the aviation sector and strengthened her ambition of becoming a flight attendant.