Plans by the NCAA to conduct a comprehensive audit on local carriers have sparked anxiety in Nigeria’s aviation sector. This move, prompted by recent incidents such as Max Air’s suspension and frequent near misses, aims to address ongoing challenges eroding traveller confidence and ensure long-term growth and safety within the industry. KELVIN OSA OKUNBOR reports
The drive to enhance air safety systems, procedures and processes is gaining significant momentum as countries around the world, including Nigeria, take proactive steps to strengthen their civil aviation regulations. Experts often view these efforts as an ongoing journey rather than a final destination, requiring all stakeholders in the aviation value chain to adhere to internationally recognized standards set by global regulators, including the International Civil Aviation Organisation (ICAO), the International Air Transport Association (IATA), Flight Safety International (FSI), the Airports Council International (ACI), and other relevant bodies. Therefore airlines, airport authorities, regulators, and service providers invest substantial resources to meet the highest safety standards, ultimately boosting the confidence of air travel users.
However, the recurring incidents of near-miss accidents in Nigeria’s aviation sector raise concerns about the effectiveness of collaboration among key industry players. In recent years, reports of aircraft overshooting runways, skidding off, and incidents such as runway incursions and excursions have become all too common, dominating industry discussions. As a result, the state of Nigeria’s air transport sector is increasingly becoming a topic of concern and debate, both locally and internationally.
Intriguingly, some airlines have found themselves at the forefront of the industry’s concerning narrative. In a recurring pattern, certain carriers are forced to temporarily suspend operations due to a series of serious incidents, while the regulatory body is often compelled to take drastic action to prevent what could be an impending accident. Just last week, the Nigeria Civil Aviation Authority (NCAA), the country’s apex regulatory body, revealed plans to intensify its ongoing comprehensive audit of all scheduled domestic carriers.
Speaking on this development, Mr. Michael Achimugu, the Director of Public Affairs and Consumer Protection at the NCAA, stated: “The safety audit will involve a re-inspection of Max Air’s organization, procedures, personnel, and aircraft, in accordance with the Nigeria Civil Aviation Regulations.” He further explained that the economic audit would evaluate the airline’s financial stability to ensure it can maintain safe flight operations. Achimugu added that the NCAA had begun conducting organizational risk profiles for each of the scheduled operators.
During this suspension period, a thorough safety and economic audit will be carried out on the airline. He emphasised that the economic audit would assess the airline’s financial health to ensure its ability to sustain safe flight operations. He also noted that the NCAA had initiated organisational risk profiles for each scheduled carrier, including Max Air, which is nearing completion. The audit has become increasingly necessary due to the frequent incidents involving some domestic carriers. Achimugu further stated that the resumption of Max Air’s domestic operations would depend on the satisfactory completion of this audit.
“Statutorily, the Nigerian Safety Investigation Bureau (NSIB) has initiated investigation into the occurrence. The NCAA will provide the required support to the NSIB in this regard. However, as a result of this incident, Max Air is suspending its domestic flight operations for a period of three months with effect from midnight, 31st January 2025, to allow for an internal appraisal of its operations by its management.
“During this three -month period, the NCAA will conduct a thorough safety and economic audit on Max Air. The safety audit will entail a re-inspection of Max Air’s organization, procedures, personnel, and aircraft as specified by Part 1.3.3.3(b) of the Nigeria Civil Aviation Regulations, while the economic audit will critically examine the financial health of the airline to guarantee its capability to sustain safe flight operations. The resumption of Max Air’s domestic flight operations will be predicated on the satisfactory completion of this audit. The NCAA is aware of the inconvenience this action may cause intending passengers of Max Air. However, the safety and well-being of passengers is paramount. Thus, the NCAA appeals for patience and understanding while it ensures the protection of passenger rights,” Achimugu said.
Experts suggest that the latest development comes on the heels of a series of serious incidents involving local carriers. Notably, this is not the first time Max Air has come under the regulatory spotlight. On July 13, 2023, the Nigeria Civil Aviation Authority (NCAA) suspended parts A3 and D43 in the Operations Specifications for the Boeing B737 aircraft type in Max Air’s fleet. This decision was prompted by a series of incidents involving the Boeing B737 aircraft type. One of the incidents occurred on May 7, 2023, when a Boeing 737-400 (registration 5N-MBO) experienced the loss of the number 1 Main Landing Gear (MLG) wheel during a flight from Yola Airport, Adamawa State, to Nnamdi Azikiwe International Airport, Abuja.
Additionally, on July 7, 2023, a fuel contamination issue was reported in the main fuel tanks of a Boeing 737-300 (registration 5N-MHM), leading to an Auxiliary Power Unit (APU) shutdown on the ground at Yola Airport. Another serious incident occurred on July 11, 2023, when a Boeing 737-400 (registration 5N-MBD) aborted its take-off at Mallam Aminu Kano International Airport (MAKIA) due to high Exhaust Gas Temperature (EGT) readings. On the same day, a Boeing 737-300 (registration 5N-MHM) had to return to Nnamdi Azikiwe International Airport (NAIA) due to a duct overheat indication in the cockpit.
In response to these incidents, the NCAA assembled a team of inspectors to audit Max Air’s operations. The airline was informed that the audit results must be satisfactory before it would be permitted to resume operations with the affected aircraft type. This is just one example of the NCAA’s regulatory actions. In 2022, the NCAA conducted financial and economic audits of eight domestic carriers to assess their financial health. The regulatory body stressed that the audits were crucial to ensuring the stability of airlines in an industry where passenger confidence is increasingly under scrutiny. The NCAA clarified that the audits would be carried out in phases, with preliminary reports suggesting that while the carriers were not facing major safety challenges, they were struggling with cost-related issues. These included difficulties accessing foreign exchange at the official rate and the rising cost of aviation fuel, which have made it difficult for airlines to cover their operational expenses.
The NCAA said: “Eight other carriers are undergoing financial and economic audit, and this is done in batches. Right now, it is just a financial and economic crisis, and we will do all we can to ensure it doesn’t get to a safety crisis. The NCAA has grounded a considerable number of aircraft. Though airlines may be undergoing these challenges, the regulator would not compromise on safety.”
Besides Max Air, the NCAA had conducted audits on the operations of Aero Contractors, DANA Air and others with damning outcomes. On July 20, 2022, the NCAA suspended Dana Air’s Air Transport License and Air Operator Certificate indefinitely after a thorough financial, safety and technical audit. “The decision is the outcome of a financial and economic health audit carried out on the Airline by the Authority, and the findings of an investigation conducted on the Airline’s flight operations recently, which revealed that Dana Air is no longer in a position to meet its financial obligations and to conduct safe flight operations. The NCAA acknowledges the negative effect this pre-emptive decision will have on the airline’s passengers and the travelling public and seeks their understanding, as the safety of flight operations takes priority over all other considerations.”
During a summit last year organized to support local carriers, the acting Director-General of NCAA, Captain Chris Najomo, dropped a bombshell. He disclosed that if the NCAA were to strictly adhere to the findings of the financial audits conducted on Nigerian carriers, it could expose significant vulnerabilities in their long-term sustainability. To help these carriers remain operational, Najomo emphasised that the NCAA continues to support indigenous airlines, ensuring that safety is never compromised. This commitment, he noted, was the driving force behind the recent regional summit themed: “Repositioning the Nigerian Aviation Industry for Financial Capability and Economic Viability: An Inclusive Regulatory Dialogue.”
Najomo explained that the summit aimed to strengthen airlines and other service providers, enhancing their operational efficiency and international competitiveness. He said, “Supporting the sustainable growth of the local airline industry while promoting compliance with national and international obligations, and assessing existing local laws and international regulations, is crucial. This will improve funding, financial management, and safety, among other factors.”
In a related development, Chairman of the Senate Committee on Aviation, Abdulfatai Buhari, announced that the National Assembly is working on a bill that would require Nigerian airlines to operate with a fleet of at least four to five aircraft before starting operations. Buhari stated that this proposed bill is one of the measures to address the capacity issues and other challenges Nigerian carriers face.
Experts suggest that the ongoing audit of local carriers will provide the NCAA with an opportunity to reassess its policy, particularly the regulation that mandates a minimum fleet size of six aircraft for scheduled airlines. Meanwhile, the President of the National Association of Nigeria Travel Agents (NANTA), Mr. Yinka Folami, voiced deep concern over the increasing number of near-fatal incidents within Nigeria’s local aviation space. He urged all stakeholders to prioritise safety and address operational issues. While welcoming the ongoing audit by the NCAA, Folami remarked that an organizational risk audit for all airlines operating in Nigeria had been long overdue. He urged both airline operators and government regulatory agencies to set aside their differences and collaborate to enhance emergency response systems and ensure passenger safety. “We are concerned about the growing number of near-fatal incidents in the Nigerian aviation space and the impact this is having on the traveling public,” Folami stated. He also highlighted that many of the association’s customers have shared similar concerns, expressing anxiety over the safety of air travel in Nigeria.
“We urge all stakeholders to unite and tackle the challenges facing the industry to restore confidence in air travel across Nigeria,” said the NANTA president. NANTA also praised the ongoing investigations into the industry’s challenges but stressed the need for proactive measures to ensure the safety and smooth travel experiences for passengers. “We cannot ignore the safety concerns of our customers. We call on all stakeholders to collaborate in minimising risks and maximizing passenger protection.” He added that the Nigerian traveling public is already facing many difficulties, making it essential for the industry to prioritize their safety and well-being.
In a related statement, a former NCAA chief, who requested to remain anonymous, underscored the importance of auditing local carriers to maintain the integrity of the safety chain. “The NCAA must regularly engage with industry players, especially airlines, to ensure that safety issues do not arise, particularly in situations of financial distress,” he said. He emphasised that failing to address financial difficulties in a timely manner could lead to safety compromises, with airlines potentially cutting corners in their operations. “Aviation is inherently safety-sensitive. If financial troubles are not properly managed, it’s only a matter of time before airlines can no longer meet all regulatory requirements, and safety may be compromised,” he warned.
The former NCAA official pointed out that the COVID-19 pandemic had not only placed airlines in a difficult position but also revealed several systemic issues. “Many airlines worldwide didn’t survive the pandemic, and some are still grappling with its effects. Just when we thought recovery was on the horizon, issues like foreign exchange shortages and the rising cost of Jet A1 fuel further exacerbated the situation. Despite these challenges, airlines are doing their best under difficult circumstances.” He concluded, “These challenges have increased our workload, but we are committed to maintaining vigilant oversight to ensure safety standards are met.”
The verdict came as little surprise to many industry watchers, who noted that global carriers have been navigating turbulent financial and economic challenges since the outbreak of the COVID-19 pandemic. A study conducted by industry experts highlights that Nigerian carriers’ efforts to acquire new aircraft have been hindered by the stringent conditions imposed by aircraft manufacturers and leasing companies. Additionally, the prohibitive cost of offshore aircraft maintenance continues to be a major challenge for local carriers.
However, efforts are underway by several ambitious operators to establish aircraft repair facilities within Nigeria. Ibom Air, Air Peace, United Nigeria, Xejet Airlines, and others are in the process of negotiating with foreign partners to realize this significant goal. In an interview, the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, explained that the construction of the XeJet Flight Support and Engineering facility at the Nnamdi Azikiwe International Airport in Abuja—valued at approximately $10 million—aligns with the vision of the current administration to foster growth and development in local aviation. The government has consistently emphasized the need for a Maintenance, Repair, and Overhaul (MRO) facility, similar to those found in other parts of the world.
The facility, to be built by the Chinese Civil Engineering Construction Company (CCECC) over an 18-month period, will feature a Private Business Terminal, a Maintenance Hangar, hotels, conference centres, and more. Keyamo expressed his enthusiasm about having an indigenous airline, in partnership with Nigerian banks, not only constructing an MRO facility but also establishing other critical flight support infrastructure. Keyamo further disclosed that the federal government has attracted a similar project and allocated resources to develop an Aircraft Manufacturing Company in Nigeria. “While the government may not be able to provide direct financial support to airlines, it is committed to creating the right policy and enabling environment for growth and development. We will continue to provide all the necessary support to XeJet,” Keyamo said.
Keyamo also assured that the Federal Airports Authority of Nigeria (FAAN) and the Nigerian Civil Aviation Authority (NCAA) would oversee the project to ensure that the facility adheres to all regulatory requirements, making it world-class and capable of attracting international customers. XeJet CEO Emmanuel Iza noted that the facility would offer flight support services to business passengers while improving aircraft maintenance services. He expressed the airline’s ambition to put Nigeria on the map as a hub for aircraft manufacturing. Even if they are not initially able to manufacture entire aircraft, Iza said, their goal is to produce aircraft components, adding that Nigeria has the talent and infrastructure necessary to support such an endeavour. “All that is needed is the right enabling environment,” he emphasised. Iza also revealed that the construction of the facility would occur in two phases: first, groundwork, including the creation of a runway and taxiways connecting the facility to the airport; and second, the construction of the necessary buildings and structures.
About the Private Business Terminal, the Chairman emphasised that the tarmac would be built to world-class standards, providing private jet owners with top-tier services comparable to those in other developed countries. However, some industry experts argue that the Nigerian Civil Aviation Authority (NCAA) should look beyond cosmetic measures to address the sector’s underlying issues. Captain Roland Iyayi, Chief Executive Officer of Top Brass Aviation, stated that a regulatory overhaul of local carriers is needed, which should include creating multiple licensing structures for airlines. According to Iyayi, the scale of an airline’s operations should determine the type of license it receives. He argued that categorizing all scheduled operators under the same regulatory framework is inappropriate, as it fails to account for the varying needs of different carriers.
“I believe the NCAA should license airlines based on the type of aircraft they operate,” Iyayi said, stressing that charter operators, scheduled carriers, and airlines using small and medium-range aircraft should not fall under the same operational classification. He proposed that the licensing structure be tailored to the scale of operations, with distinct categories for different types of carriers. These could include air taxis for airlines using small propeller aircraft, regional operators for those with medium-range aircraft, and national airlines capable of nationwide operations.
Iyayi argued that applying a one-size-fits-all model does not make economic sense. “To drive change, enforcement of regulations is crucial. We need to review policies that hinder growth, particularly the current licensing structure. It is essential to create a regulatory framework that accommodates different niches in the industry. The one-size-fits-all mentality is flawed, and there is wisdom in licensing airlines according to their specific categories,” he emphasised.
Meanwhile, investigations reveal that the NCAA is intensifying its engagement with local carriers over the implementation of the proposed minimum fleet requirement. The plan to mandate a six-aircraft fleet for scheduled carriers has sparked controversy and divided opinions within the industry. Some experts have expressed concerns that this policy could be detrimental to the sector’s growth. Despite setting 2025 as the target date for enforcement, NCAA’s Acting Director-General, Captain Najomo, has indicated that the regulator is open to adjusting the policy. Najomo stated that there is room for flexibility, ensuring that the implementation of the six-aircraft requirement aligns with the specific operational needs of individual carriers. He said: “We are tweaking that, even though it takes effect from 2025, but we are looking at the regulation very well, whereby it will suit what operation you want to do. If you’re going to go to a full-blown airline, we will look at the regulation and maybe the six aircraft that will come in, but there are some operators who just want to do it, maybe Lagos-Ibadan, Lagos-Ilorin and all that. So, we’ll look at the regulation and say, okay, maybe you should stick back to the three aircraft and see how it is. We want to encourage more people to come into the industry.”
He said the Federal Government is working on interventions for the sector. The NCAA, he further disclosed, has finalized plans to digitize its operations to enhance its oversight functions. Under this new initiative, the civil aviation regulator will implement digital platforms for processing approvals, licenses, recertification renewals, and addressing passenger complaints. On the benefits of the training and the new portal, Najomo explained: “The portal will allow for real-time monitoring of airline performance, in addition to tracking passenger handling procedures during check-in, boarding, disembarkation, and other aspects of the travel experience. The data collected will provide regulators, service providers, and the public with an accurate gauge of airline performance. Consumers will be able to view performance details on the official NCAA website, enabling them to assess the best and worst-performing airlines from a customer service perspective.”
He added: “The portal has yet to be launched, but we are ensuring that the necessary training is in place. We’ve already trained our staff, and it’s crucial to engage all stakeholders to understand how the portal will function. Once operational, this system will benefit everyone involved.” According to Najomo, the new platform will not only expedite the resolution of passenger complaints but will also serve as a barometer for evaluating the performance of both local and foreign airlines operating in Nigeria. He emphasised that the capacity-building program aims to equip airline personnel and the regulatory body with the skills needed to address common passenger complaints, such as flight delays and cancellations. To further this goal, Najomo revealed that the NCAA has undertaken the digitalisation of much of its operations using cutting-edge information technology applications.
Najomo also highlighted the ongoing efforts by Mr. Keyamo to create a favourable environment for local carriers to acquire aircraft. “The Minister has been actively engaging with aircraft manufacturers such as Boeing and Embraer to secure dry leasing options for our airlines,” he said. “This initiative is progressing well, and we expect tangible results soon, which will enable our airlines to expand their fleets.”
However, the proposed fleet policy has faced criticism from some sector experts. Engr. Cyril Obuah, former Director at Azman Air, argued that raising the minimum fleet requirement to six aircraft for start-up airlines would discourage investment and could prove counterproductive. Obuah pointed out that many of Nigeria’s past and present airlines, including ADC, Kabo, Afrijet, Belview, Slok, and Azman Air, started with fewer than three aircraft when the country’s economy was not as challenging as it is today. He argued that the collapse of many defunct carriers was due to a poor economy, exchange rate volatility, and corrupt leadership, rather than mismanagement, as often claimed. Obuah stressed that the NCAA should focus on encouraging the government to support the growth of more airlines, particularly after the failed attempt to launch Nigeria Air, the planned national carrier. He warned that the new regulation could lead to increased unemployment, particularly for aviation professionals, as many would struggle to find work under the new fleet policy.
He further contended that flight delays and cancellations are not necessarily caused by the number of aircraft in a fleet. “The NCAA is already dealing with many aviation professionals who are unemployed,” Obuah said. “This new law will only worsen the situation. The NCAA alone cannot absorb all these jobless professionals. Instead of implementing policies that harm the economy, we need laws that will stimulate growth.” He concluded, “Delays and cancellations are not solely due to the number of aircraft an airline operates. There are many other factors. This law, in my opinion, will be regretted.” Capt. Mohammed Badamasi, a former pilot with the defunct national carrier Nigeria Airways, also urged the NCAA to reconsider the new regulation, despite the challenges faced in the past.
Badamosi emphasised that the NCAA should focus on monitoring airlines to ensure they operate within the limits of their fleet size and avoid overextending by flying more routes than they can handle. He also criticized the NCAA for not consulting stakeholders before formulating the regulation, pointing out that it could face challenges in the National Assembly. “Why is it that the NCAA is no longer engaging with stakeholders to brainstorm on issues like this before enacting a regulation that affects the entire industry?” Badamosi asked. “Rules should not be made to make life difficult for those who are meant to follow them. If the NCAA is unwilling to correct this mistake, can’t it be challenged in the National Assembly?”
Meanwhile, Frank Oruye, an aviation stakeholder, shifted some of the blames for the industry’s challenges to Nigerian airline operators. He suggested that the minimum fleet requirement for start-up airlines should be four aircraft to increase their chances of survival. Oruye also critiqued Nigerian investors for their tendency to operate independently, rather than pooling resources to build a more robust industry, like how European airlines collaborate. He explained: “New national airlines have been created all over Africa, each operating only a few aircraft—often less than what a single European airline would own. Europeans, however, pool resources for maintenance, aircraft specifications, and spare parts procurement, benefiting from economies of scale. African airlines, on the other hand, tend to add just one, two, or three aircraft, contributing to GDP and profits in Europe rather than to the African continent.”
In contrast, Group Capt. John Ojikutu (rtd) supported the new regulation. He suggested that airlines unable to meet the six-aircraft minimum could opt for charter operations. Ojikutu further recommended that airlines partner or interline with each other, thereby reducing delays and cancellations, and suggested that some airlines collapse due to mismanagement and corruption. “No, it was not a bad economy that led to the collapse of early airlines—it was poor management,” Ojikutu asserted. “It wasn’t the exchange rate either, but institutional corruption. Take a look at airlines such as Kabo, Okada, DAS, Gas and others. They flew over 2,000 sorties for the Economic Community of West African States Monitoring Group (ECOMOG), earning $50,000 to $120,000 per sortie, depending on the aircraft used. Airlines such as ADC with just four aircraft, carried an average of 25,000 passengers monthly. The real issue was poor management and corruption, not the economy.”
Despite the challenges, there is optimism in the horizon. The recent signing of the Cape Town Convention Protocol on Mobile Asset Protection offers a new avenue for Nigerian carriers to secure aircraft leases. This breakthrough was highlighted during a high-level meeting at the Aviation Economic Conference in Dublin, where Afreximbank expressed its readiness to support aircraft financing for Nigerian airlines. Afreximbank’s commitment to supporting Nigerian carriers came after a positive discussion led by Mr Keyamo. Helen Brume, Afreximbank’s Director and Global Head of Project and Asset-Based Finance, underscored the bank’s 30-year track record in promoting African trade and its experience with airlines such as Arik Air, Kenya Airways, and TAG. Brume highlighted the importance of aviation infrastructure in improving the competitiveness of African carriers.
Afreximbank also announced the launch of a leasing subsidiary, with plans to deliver 25 aircraft for dry leasing to African airlines.
This initiative aims to enhance the operational capacity of Nigerian airlines, particularly for domestic and Bilateral Air Service Agreement (BASA) routes. Praising Nigeria’s progress, Lereece Rose, Senior Director of Finance at Boeing, noted that Keyamo had significantly raised the country’s score in the Cape Town Convention, from 49.5% to 75.5%. This achievement reflects Nigeria’s commitment to fostering a favourable environment for aircraft financing and leasing.
Keyamo reaffirmed the government’s dedication to facilitating partnerships that will enable Nigerian operators to access financing solutions, thus stimulating growth in the aviation sector, and improving service delivery on both domestic and international routes. To ensure these discussions result in actionable outcomes, a committee has been established to guide the collaboration. The partnership with Afreximbank marks a promising step forward for Nigeria’s aviation sector, signalling the potential for transformation and growth.
