A former Rector of the Nigerian College of Aviation Technology, Zaria, Samuel Caulcrick, has identified economic instability, high operating costs, and weak investor confidence as key reasons foreign investors continue to shy away from Nigeria’s aviation sector.
Speaking on the investment climate, Caulcrick said while Nigeria has made efforts to attract investors, the country has failed to provide the necessary assurances on returns. adding that confidence remains the bedrock of sustainable capital inflow.
He pointed to widespread financial leakages as a major deterrent, noting that illicit financial flows, oil theft, and illegal mining collectively drain between $17.72bn and $46bn annually from the economy.
The aviation expert further warned that such leakages weaken the government’s capacity to invest in infrastructure critical to the sector.
While saying foreign exchange instability continues to discourage long-term commitments, he also said, Investors are aware that all these leakages reduce government revenue available for infrastructure development to improve returns on their investments.