Aero Contractors has laid off 60% of its employees as part of measures to cut costs, four months after it suspended operations due to operational difficulties.
The Muhammadu Buhari government recently launched an economic recovery plan that will see it pursue 2% GDP growth this year. There has been a steady inflow of petrodollars since late 2016 due to a ceasefire in the Niger Delta, and this has enabled the government intensify efforts to support the economy (e.g. expanding its N-Power jobs program).
The aviation sector would benefit from an economic recovery, but operational/regulatory problems (e.g. multiple taxation and fuel shortages) might also persist, alongside the risk of industrial unrest affecting airlines like Aero who are struggling to pay staff.
Written by Songhai Analyst, Adedayo Ademuwagun (Lagos)
Songhai Advisory's raison d'etre is to provide local knowledge in support of investment in Sub-Saharan Africa.
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