A leading aircraft manufacturer, Diamond Aircraft, has announced its plans explore the market potentials in Africa and establish strong presence in Nigeria.
According to The Punch, this was said last weekend by the Chairman, Diamond aircraft, Bin Chen, during his team’s visit to Nigeria’s Minister of Aviation, Hadi Sirika.
In his words, “We are excited to explore the potential of the African market and to meet with local partners who can help us establish a strong presence in Nigeria.
“We believe that Nigeria has great potential for growth and we are eager to be a part of that growth.”
Chen further stated that Diamond Aircraft is seeking a partner to assist in introducing their aircraft to the Nigerian market while maintaining high standards of quality. They see potential in the market and are keen to pursue it.
“We are looking for a partner who can help us bring our aircraft to the Nigerian market and ensure that they meet the highest standards of excellence. We believe that there is a great opportunity here and we are eager to explore it,” he said.
Responding to Diamond aircraft, the Minister of Aviation announced that a new maintenance repair and overhaul facility has been established to boost Nigeria’s aviation industry. The MRO will provide maintenance services for various types of aircraft, and there are other MROs in the country, including one established by the National College of Aviation Technology.
The minister also highlighted that Nigeria has over 14,000 engineers and mechanics capable of handling the aviation industry’s maintenance needs.
Sirika said, “You are in the centre of Africa and since you are producing for Africa, you cannot go to the coast to produce, so, Nigeria is your best location.
“We also have a very flexible civil aviation requirement. So, the government of Nigeria is welcoming you with open arms to come and set up.
“There is also a lot of charter business in Nigeria and a chartered aircraft is between $9000 to $12,000 per hour. So, there is a huge market in Nigeria. So, if you are in Africa and you are not in Nigeria, then you are not in Africa.”
The Minister of Finance, Zainab Ahmed, mentioned that the Nigerian government has implemented tax policies and incentives to attract new businesses to invest in the country. She also stated that a double taxation agreement is in place to prevent businesses from being taxed twice on the same income.
“There is now a pioneers status available for three years, which is renewable, and offers a range of benefits, including import duty waivers for equipment and aircraft spares,” she said.
Zainab added, “On the fiscal side, we encourage new businesses that are coming to set up. We have significant tax policies you can benefit from, also we do have a double taxation agreement that protects you from being further taxed. In Nigeria, the aircraft industry also enjoys a VAT exemption. No custom duty when you import.”
It was also reported that the Attorney General of the Federation, Abubakar Malami, said that Nigeria is committed to protecting the investments of both local and foreign investors.
He explained that the country’s constitution now includes provisions that guarantee the safety and security of investments made in Nigeria, which is expected to boost the country’s economy and attract more foreign investment. Investors are assured that their investments would be protected, and they can do business in Nigeria with confidence.
The Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo, encouraged businesses to expand to Africa, highlighting the huge opportunity presented by the African Continental Free Trade Area.
He also emphasized that Nigeria’s large population of 200-250 million makes it the largest individual market on the continent, granting access to the wider African market.
Additionally, any product manufactured in Nigeria would be eligible for duty-free sales in other African countries, making it advantageous for businesses to set up operations in Nigeria.
