Expert Calls for Policy Reform to Boost Local MRO Investment and Reduce $1 Billion Maintenance Costs

Expert Calls for Policy Reform to Boost Local MRO Investment and Reduce $1 Billion Maintenance Costs

Urgent Need for Regulatory Changes

Capt. Samuel Caulcrick, a seasoned aviation expert and former Rector of the Nigeria College of Aviation Technology (NCAT), Zaria, has urged the Nigeria Civil Aviation Authority (NCAA) to implement comprehensive policy reforms aimed at stimulating investment in local Maintenance, Repair, and Overhaul (MRO) facilities. Caulcrick highlighted the critical need to address the annual outflow of approximately $1 billion spent by Nigerian airlines on aircraft maintenance abroad. This reliance on foreign MRO services not only drains the country’s foreign exchange reserves but also impedes the growth and development of the domestic aviation sector.

In an interview with The Guardian, Caulcrick pointed out that despite operating within Nigeria, most domestic carriers continue to outsource essential aircraft maintenance and heavy checks to overseas providers. He advocated for the NCAA to enforce existing regulations that mandate airlines to engage local MRO partners as a prerequisite for renewing their Air Operator Certificates (AOC). According to Caulcrick, such enforcement would reduce the need for airlines to expend scarce foreign currency on overseas maintenance, particularly on the costly man-hour component, which has been exacerbated by the naira’s volatility.

Economic and Operational Benefits of a Local MRO Sector

Caulcrick emphasized that a thriving local MRO industry could position Nigeria as a regional maintenance hub, attracting foreign airlines, generating employment opportunities, and drawing vital investment into the sector. Recent industry data underscores the magnitude of the issue, with Nigerian airlines collectively spending around $1 billion annually on offshore maintenance. At a recent aviation forum in Lagos, Air Peace Chairman Dr. Allen Onyema revealed that his airline alone incurred N180 billion in overseas aircraft maintenance costs in 2024.

The expert further stressed that regulatory reforms must be complemented by targeted efforts to encourage investment in the MRO sector. He identified several key challenges, including high operational costs, outdated facilities, and inadequate equipment. Caulcrick noted that developing a competitive MRO industry requires substantial capital investment and strong government commitment to upgrade infrastructure and provide policy support. He also drew attention to the ongoing brain drain of skilled engineers and technicians, many of whom are trained locally but are lured abroad by better employment conditions.

Challenges and Regional Competitiveness

Building a robust local MRO ecosystem, Caulcrick argued, would yield significant economic advantages such as job creation, technology transfer, and improved aircraft turnaround times. A well-developed MRO sector would enhance the sustainability and global competitiveness of Nigeria’s aviation industry by enabling local providers to respond swiftly to customer needs and minimize aircraft downtime.

Nonetheless, the path to establishing a successful MRO industry is fraught with challenges. Industry analysts highlight potential supply chain disruptions, regulatory compliance issues, and workforce shortages as major obstacles. Globally, competitors are adapting through strategic partnerships and technological investments. For instance, Atitech’s joint venture in Saudi Arabia and Pratt & Whitney’s advancements in materials forecasting and supply chain management exemplify efforts to enhance efficiency. Additionally, geopolitical factors such as Brexit have influenced workforce dynamics in the UK’s MRO sector, further shifting market conditions.

Concluding his remarks, Caulcrick expressed confidence that with the appropriate policy framework and sustained investment, Nigeria could transform its aviation maintenance landscape, reduce capital flight, and secure a competitive advantage within the region.