Nigeria's Aviation Sector N160 Billion Challenge
Uber has suspended operations in most parts of India. I also expect the same to happen in Nigeria in the coming days. The National Association of Nigeria Travel Agencies (NANTA) projects Nigeria’s aviation sector to lose N160.58 billion ($440 million). In 2020, experts are projecting an excess of 2.2 million Nigerians jobs to be lost as a result of the coronavirus pandemic. Also, lending fintechs are expected to see an excess of 37% of their loans (typically uncollateralized) going under water as unemployment rises and defaults scale. What the Central Bank of Nigeria decides to do will determine the challenges AMCON, the bad debts company, will face in coming quarters.
Bad time for aviation business: Air transport business going through a decline in Nigeria, so the plea from NANTA is expected as the country’s Aviation Industry has been projected to lose N160.58 billion and 2.2 million jobs in 2020 as the Coronavirus continues to spread. The confirmed cases of Coronavirus in Nigeria is now 25, while two have been discharged.
But the challenge isn’t limited to Nigeria alone, as the Aviation Industry in Africa and globally is losing revenue to the pandemic. African airlines had lost $4.4 billion in revenue as of March 11, 2020. And the African industry has been projected to lose more.