Tag: aviation sector

Passengers intending to connect different parts of the country during the yuletide are already altering their itinerary as the airfare structure projected by existing carriers will be disrupted by new carriers which join the scene this week.

The fledging carriers will be slugging out competition by existing airlines including : Air Peace, Ibom Air, Max Air, Arik Air, Aero contractors, Xejet Airlines/Enugu Air, ValueJet Airlines, United Nigeria Airlines, NG Eagle Airlines , Overland Airways, Green Africa Airways and others.

Among the new local airlines are : Pioneer Airlines, packaged by Bayelsa State Government and Binani Airlines owned by Senator Aishatu Binani and K- Impex Airlines promoted by a collection of businessmen from the North West.

Industry sources hinted while Pioneer Airlines and K- Impex Airlines have not announced their take off date yet, Binani Airlines, scheduled to commence flights this week is already fully booked and sold out on its website.

Many passengers who are yet to settle for the carriers of their choice for the end of year travel are weighing options for patronage ostensibly dictated by fair structure, route network and other considerations.

With more aircraft at the disposal of airlines, the number of available seat will get a boost , thereby occasioning significant reduction  in fares.

A cross section of passengers express excitement over the development saying more travel options will enable them tersk their budget and itinerary for the end of year travel.

The passengers say intense competition will trigger both on time departure and service quality among existing and the fledging carriers.

They said the route network unveiled by the new carriers – Binani Airlines, Pioneer Airlines and K- Impex Airlines will usher in an era of new service where operators will keep to the fidelity of schedules , offering fare structures that offers passengers options.

While K- Impex Airlines has secured the all important Air Operator’s Certificate (AOC), from the Nigerian Civil Aviation Authority (NCAA), it has commenced the delivery of four Embraer 190 aircraft in readiness for flight operations.

The choice of regional aircraft, experts say, will reduce operating costs for bourgeoning/ fledge airlines.

The entrance of the new carriers, industry watchers say will reduce the dominance of some airlines on certain routes considered as home zones.

Industry sources say Pioneer Airlines, which is yet to secure an AOC from the apex regulatory body, has entered into a technical / operational partnership with 7 – Star Global Aviation to manage its aircraft.

Flight operations by Pioneer Airlines will open the Bayelsa flank to the rest of the country through its state – run airport  in Ammasoma, near Yenagoa,  the capital City.

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Experts say the route network the Bayelsa State Government backed airline: Pioneer Airlines with plans to connect –  Port Harcourt to Bonny Island, Yenagoa to Brass, Warri to Escravos, Eket, Uyo, Calabar, Ibadan, Akure, Enugu, Anambra, Benin, Abuja, Lagos, Babcock University, Afe Babalola University and  Adeleke University will create frontier opportunities for unserved and underserved routes that criss cross Nigeria.

Investigations reveal that BINANI Airlines will latch onto the single route and multiple routing strategy to attract passengers on the Lagos, Benin, Yola, Abuja, Port Harcourt , Kano , Maiduguri as well as other routes.

The airline received its Air Operating Certificate  (AOC) in July 2024.

The Airline is owned by Senator Aishatu Binani, the richest woman in Adamawa State and the North East.

She also owns the biggest printing press in the North.

The Binani Air will be the first airline in Nigeria owned by a woman.

Binani Air has also a female CEO: Aminatu Dahiru Chiroma. Another first for the young airline.

It’s the first airline in our Country with a female owner and a female CEO.

At the weekend, one of the E170s on their fleet made a test flight ahead of the planned start of commercial operations this  week, showing that the airline is ready to fly.

Speaking in an interview, K- Impex Airlines, Managing Director, Dr. Abel Ozigi, stated that the four Embraer E190 jets, with a 98-passenger capacity – 90 economy and  eight  business class  were chosen for their economy range and operational efficiency on domestic and regional routes.

“We chose outright purchase to redeem the capital flight associated with the lease option,” Ozigi said.

The acquisition is facilitated by the near completion of the Air Operator’s Certificate (AOC) with the Nigerian Civil Aviation Authority (NCAA). Dr. Ozigi assured that the airline is committed to type-rating and recurrent training for pilots and crew to demonstrate competency.

K-Impex Airline , he said aims to fill the untapped air transport market segments across Nigeria, serving over 40 destinations, including smaller cities and airstrips not typically served by major carriers. The airline will carry out light maintenance using in-country hangars and MRO facilities with established standards and competence.

Chairman of the Board, His Royal Highness Nasiru Ado Bayero, praised the team led by Dr. Ozigi for achieving excellence, stating, “This long wait is worth the wait because we are taking off now with a bang.”

He added that the acquisition of safe and efficient aircraft will serve Nigerian and regional operations.

Speaking in an interview, an official of Pioneer Airlines, who pleaded anonymity said the carrier is strategically  positioned to serve the growing demand for affordable, reliable, and efficient short destinations with seamless connectivity throughout the southern part of Nigeria.

He said :” Our pivotal routes are novel to the Nigerian aviation landscape. We are creating a regional hub that is seamlessly connecting the southern part of Nigeria. We are operating short destinations that were never undertaken by other airlines, this is because in Pioneer Airlines, no destination is too short.

“We are seamlessly connecting the southern parts of Nigeria including all major oil producing communities in the Niger Delta to foster efficient operations by the International Oil Companies

President Bola Ahmed Tinubu has highlighted areas investors could explore in aviation to plough their resources for good returns urging players in the air travel ecosystem to imbibe collaboration especially with operators in the private sector.

To make Nigeria the  preferred destination for aviation investment, Tinubu said the Federal Government has already on track  the simplification of regulatory procedures, promotion of  transparency, and offering incentives in areas such as airport infrastructure, aircraft leasing, maintenance, and training.

Tinubu disclosed this  while declaring open the  2025 FAAN NATIONAL AVIATION CONFERENCE (FNAC), in Lagos.

He was represented by the Secretary of the Government of the Federation ( SGF), Mr George Akume.

Tinubu said : “We are also working on fiscal reforms that will ensure clarity and lend its hand to overall investment and policy coherence. Opportunities abound because Nigeria’s aviation industry remains one of the most viable and under-exploited markets in Africa for several reasons.

 “Over 220 million people and the largest domestic aviation market on the continent. Strategic geographic location, ideal for trans-African and intercontinental linkages.

“Growing middle class and travel demand which is expected to double within a decade. A $1.7 trillion regional market, driven by AfCFTA, that depends heavily on efficient air logistics. Massive unmet demand in cargo, MRO, leasing, charter services, and aviation-linked real estate.

These are not abstract possibilities, they are real market opportunities ready for investors.”

The President said the government has been working on fiscal reforms that will ensure clarity and lend its hand to overall investment and policy coherence.

Describing the 2025 FAAN National Aviation Conference (FNAC), an annual convergence that has become the major incubator for ideas, innovation, collaboration and investment opportunities in aviation ecosystem, Tinubu said the focus of the government is to transform the aviation into a critical engine for national  national growth and global competitiveness in a manner that drivers job creation, prosperity and  wealth.

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He said: “The aviation industry remains one of the most technologically advanced industries in the world and it is still growing in its vital role of connecting people and markets, driving tourism and trade as well as supporting countless jobs across sectors.

“Within the continent of Africa air transport bridges distance, promotes trade, tourism, enhances territorial security, supports food security, humanitarian services, maintenance of peace and fosters unity. Therefore, every runway built, every terminal modernized, and every policy reform implemented contributes directly to regional, sub-regional and national progress.

Nigeria is a vast country that is geographically located as a regional hub for connectivity. This has informed the policy direction, investment in infrastructure, systems, capabilities and human capital development.”

Highlighting the  flagship program  of the administration, the Renewed Hope Agenda, Tinubu said  significant strides have been achieved over the past two years in the area of infrastructure.

He said : “  We have embarked on the Commissioning of new international terminals in Lagos and Port Harcourt, boosting capacity and service quality. Major rehabilitation works in Abuja, Enugu, Kano, and other airports to meet global safety and efficiency requirements.

Strengthening of regulatory oversight, with enhanced collaboration between NCAA, ICAO, IATA, and NCAT to elevate industry standards. Expansion of cargo, hangar, and MRO facilities in Lagos and Kano to position Nigeria as West Africa’s logistics and aircraft-maintenance hub.

Development of frameworks for a national carrier, guided by transparency, sustainability, and global best practice.

“ These interventions are building blocks for a modern aviation ecosystem anchored on efficiency, private sector investment, safety, and international competitiveness. Government can not shoulder these responsibilities alone but shall continue to create an enabling  environment for businesses to thrive. The aviation sector in Nigeria is part of the global systems as it must comply with prescribed standards and practices. This dictates that Nigeria must continue to open the windows of opportunity for investment, partnership, and global engagement.”

Tinubu charged participants and industry players to consider emerging frontiers, where the next wave of growth will come from.

  These , Tinubu said include : “ Aviation Cargo and Agro-Export Corridors involving dedicated cargo terminals in Lagos, Kano, Port Harcourt, and Makurdi, integration with Special Agro-Industrial Processing Zones and cold-chain infrastructure for perishables

“ Expansion of Maintenance, Repair, and Overhaul (MRO) infrastructure aimed at reducing aircraft maintenance capital flight, attracting global MRO players to partner with local investors.

 Development of Smart & Green Airports involving renewable energy integration; digital passenger management, E-gates, biometrics, and AI-driven security systems

 Aviation Training & Human Capital which involves upgrading of the  NCAT which has been decentralised for access, forging of new  training partnerships and development of modular training hubs for pilots, ATCs, and aircraft engineer.

These emerging areas align directly with the government’s  economic diversification, growth and and job-creation goals.

“ This administration shall remain focused on safety, efficiency, and sustainability in the sector. We also renew our commitment to implementing Civil Aviation Policy reforms, embracing renewable energy solutions for airport operations, and developing smart, secure, and customer-friendly terminals.

 “Together , government, private sector, and international partners, we can build a safer, stronger, and more globally connected industry. While not compromising standards, safety and security, our policies shall continue to be investment friendly and the interest of critical stakeholders shall remain paramount. Let your discussion chart the way forward.”

 Speaking at the conference, Governor of Lagos State, Mr Babajide Sanwo- Olu canvassed collaboration between FAAN and the Centre of Excellence in driving the growth of multi – modal transportation system saying the airport planned for the Lekki corridor has received approval from the Federal Government.

Sanwo – Olu said the proposed airport, for which the State Government is seeking funding for will add to the economic development of the state and de-congest pressure on the Murtala Muhammed International Airport, Ikeja.

The Lagos Governor, said the proposed airport will handle five million passengers annually, with capacity for Airbus 380 aircraft .

He said : “ We will continue to pursue our drive to achieve a coordinated implementation of a single vision mobility system.We are seeking opportunities to develop aviation for overall economic development”

Sanwo- Olu said the State Government is seeking private sector players to develop air transport infrastructure.

He said : “ The Lagos State Government and Ogun State will work together to develop the supply chain of aviation logistics, eCommerce , logistic parks and others areas .We will put in place the governance structure to make it work secure the right partnership and push for the right pillars to achieve the economic strategy of an integrated hub.”

Sanwo – Olu praised Tinubu for his strides at repositioning the aviation sector through airport infrastructure upgrade and renovation “

Chairman of FAAN Board, and former National Chairman of APC, Dr, Umaru Abdullahi Ganduje commended FAAN for the conference , describing it as a platform to draw investment to the sector.

Ganduje praised Tinubu for his achievement in the aviation sector for the last two years.

On his part,Minister of Aviation and Aerospace Development, Mr Festus Keyamo said Nigeria is making significant efforts to reposition the aviation sector. He called for action and partnership to drive the agenda of the government to fix the sector.

Keyamo was represented by the Permanent Secretary of the Ministry, Dr. Ibrahim Kana.

Governors of Borno and Imo States, Prof. Babagana  Zulum and Hope Uzodimma highlighted investment opportunities in aviation in their jurisdictions.

Ogun State Governor, Prince Dapo Abiodun said the state is making giant strides in the aviation sector with the airport it just completed .

Represented by the Deputy Governor, Engineer Noimat Salako – Oyedele , Abiondun said the state is open to partnership to drive its infrastructural development.

While welcoming guests, Managing Director of FAAN, Mrs Olubunmi Kuku said the conference  provides opportunity to seek investment in infrastructure, operations and engagement in technology.

Mrs Kuku said : “ So, to the investor community, I pose this question: Will you help us build the future? We are offering concrete pathways. Investment in Infrastructure: The gap between our current capacity and projected demand is your opportunity in terminal modernisation, cargo facilities, and airport cities.Partnership in Operations: We seek global expertise in management, ground handling, and logistics—partner with us to enhance efficiency and share in the profitability of a growing market.

“ Global Engagement in Technology: From bio metrics to sustainable solutions, invest in the future of African travel with us. The fundamentals are undeniable: Africa’s largest population, a growing economy, and a strategic geographic position. The demand is here. Growth is inevitable. The only question is, who will have the foresight to be in the cockpit with us?

“To truly ascend, we need all hands on deck. This is why I make a direct appeal to our valued unions: embrace this new era of collaboration. Your understanding and partnership are the bedrock upon which we will build. The private investment we seek is not a replacement for our workforce; it is the catalyst for its growth. It will create better facilities, more advanced systems, and ultimately, more and better jobs for Nigerians. Let us work together with a shared vision to welcome the capital that will secure our collective.”

Experts in the aviation industry have offered prescriptions on how to fix lingering challenges militating against the growth of the value chain.

President of the Aircraft Owners and Pilots Association of Nigeria, Dr. Alex Nwuba, Managing Director of Aero Contractors Airlines , Captain Ado Sanusi and former rector of Nigerian College of Aviation Technology (NCAT), Captain Samuel Caulcrick said intentional policies and intervention will rescue the industry from collapse.

Speaking in an interview , Nwuba urged the Federal Government to establish a 500  aircraft national leasing company to reduce the high finance cost burden on domestic airlines and make the industry more competitive.

 Nwuba said that aviation in Nigeria remains profitable but is weighed down by excessive finance cost that prevents sustainable growth.

According to him, while the global aviation profit margin ranges between three and seven per cent, Nigerian airlines face a borrowing interest of 28 to 34 per cent. “That finance cost automatically kills competitiveness,” he said. “The government can intervene by creating a leasing company that owns 500 aircraft and makes them available to operators at four per cent interest. That is how you make them globally competitive.”

He explained that the government could negotiate low-interest credit abroad and acquire aircraft under a favourable funding structure. “You can borrow in Japan or the United States at 0.2 to three per cent, buy airplanes, and lease them locally at a reasonable rate. When one airline fails, the aircraft can be reassigned to another. That keeps capacity in the system,” Nwuba said.

He emphasised that aviation was not unprofitable but burdened by a finance cost that stifles growth. “We must change the narrative. The industry is profitable, but the cost structures imposed by bad policies make it appear otherwise. About 47 per cent of every airline’s revenue goes to fuel alone. How do they survive year after year?” he asked.

Nwuba urged the  government to create policies that provide cheaper access to capital and remove cost barriers preventing airlines from thriving. “We need to borrow at one or two per cent. We need aircraft that are affordable. That is the only way to reduce fares, boost capacity, and cut finance cost for operators,” he added.

Another major player,  Sanusi said local airlines also suffer from policy inconsistencies and high operational charges, which have worsened their cost structure and increased their finance cost, eroding profitability.

 Captain Sanusi, said the inconsistency of government policies was a major factor driving the high finance cost and rising airfares. “Some airlines need urgent capital inflow to stay operational, but the cost of doing business keeps rising because of policy instability,” he said.

He also called for a review of airport infrastructure nationwide, noting that most local airports lag behind in passenger experience. “We’ve seen improvements at the international airports, but local airports need serious attention. The time it takes passengers to process flights must reduce, and facilities should improve. Both government and private operators must close the gaps through dialogue,” Sanusi said.

Also speaking,  Caulcrik said limited capital restricts growth for airlines, as it hampers their scape of operations.

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He said :” The rest of Africa must understand that the major challenge facing African airlines, including Nigerian carriers, is that the lack of access to affordable capital will continue to impede their ability. Limited capital restricts growth, making it harder to compete with larger, often government-backed airlines.

He further added:” Nigerian carriers need to invest in modern fleet .  Older, less efficient aircraft drive up costs and decrease competitiveness. Limited capital hampers route expansion and market reach.

“Restricted access to capital raises operating expenses, reducing profits. The industry needs to consider consolidation with stronger carriers acquiring or partnering with weaker ones. Exploring other financing options, such as Islamic finance or infrastructure bonds or establishing an aviation development bank to facilitate affordable capital to local airlines within their economies using sovereign backing.

“Governments would offer targeted support, like guarantees or subsidies to route development, to help industry growth.

“ Promoting regional collaboration and partnerships to share resources and expertise.

“The lack of access to competitive lower capital costs in emerging markets, like Nigeria, sticks out like a sore thumb in the global air transport business.”

Players in the air transport eco- system have called on the Federal Government   to align with the current aviation agenda with previous roadmaps to bolster the growth of the value chain.

The experts also canvassed consistency in policy implementation as a key driver to accelerate growth in the sector, urging the government to push for intervention that will bring about stability in the foreign exchange market in order to create special access for industry players.

Speaking in separate interviews, the former Managing Director of the Federal Airports Authority of Nigeria (FAAN) and Co- Chairman of Nigeria Aviation Award, Dr. Richard Aisuebeogun and Principal Managing Partner, Avaero Capital Partners, Sindy Foster said without providing direct support through tax incentives, waivers, and consistent policies aimed at improving air transportation infrastructure, the Federal Government’s ambition to utilise  the aviation sector  as a catalyst for economic growth, may be elusive.

Aisuebeogun said though the sector was going through a growth transition, he, however, affirmed the urgent need to fix  institutional funding challenges , prescribing  the capitalisation of Nigeria’s aviation leasing company and the exploration of structured funding instruments like a sector-specific bank.

The aviation professional reiterated his full support for the proposed comprehensive annual review and  industry outlook, calling for industry-wide collaboration to produce an inclusive and insightful document that will serve as a vital tool for planning and development.

While revealing plans to institute  a comprehensive annual industry appraisal, mirroring the structure and impact of the Nigeria Economic Summit and reports from global bodies like IATA and ACI, Aisuebeogun said the initiative will  establish an institutional framework for the sector’s development, fostering data-driven planning and growth.

He said: “The year witnessed positive developments across several fronts, signaling a foundation for accelerated expansion.

“A significant achievement was the restoration of international confidence, largely due to the government’s decisive action in resolving the substantial debt owed to foreign airlines.

“The regulatory environment also saw positive shifts, with the NCAA initiating reviews of critical procedures to enhance technical and economic oversight.

The confirmation of a substantive Director-General for the NCAA is expected to bring stability and bolster the authority’s capacity to ensure airworthiness and safety. Furthermore, the NCAA’s intensified focus on consumer protection, addressing issues like high fares and flight disruptions, aims to rebuild passenger trust.

Fleet modernisation and route expansion were other notable positives in 2024. Domestic airlines like Air Peace, Ibom Air, and Overland Airways continued their fleet renewal programmes with new aircraft acquisitions.

A significant breakthrough was the Federal Government meeting the conditions of the Cape Town Convention, removing Nigeria from the blacklist of aircraft leasing risk countries. This opens doors for more affordable long-term financing for aircraft acquisition.

“Simultaneously, airlines actively expanded their domestic and regional networks, with new airports emerging and innovative partnerships between state governments and airlines taking shape to improve connectivity.

“The unmanned aviation sector also gained prominence, marked by increased participation in drone activities and the NCAA’s release of regulations for drone operations, signaling the emergence of a new frontier in Nigeria’s aviation landscape.

“However, the year was not without its hurdles. Infrastructure development continued to face challenges due to the economic recession and currency devaluation, resulting in the delayed implementation of projects.”

Looking ahead to 2025, Dr. Aisuebeogun outlined several key factors expected to shape the industry.

“The government’s commitment to facilitating aircraft acquisition and access to international credit will be crucial. The anticipated commencement of airport concessions is expected to attract private sector investment, leading to improved infrastructure and passenger experiences.”

But, Foster expressed worry over the dip in passenger figures in the last one year, affirming that such data paints a stark picture.

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She said: “Nigeria recorded 15.68 million passenger movements in 2024, falling short of the previous year’s 15.69 million. More concerning is the drop from 2022’s peak of 16.17 million.This downward trajectory stands in sharp contrast to our continental neighbours and global peers.”

Offering a comparative study, Foster said Egypt welcomed 24.05 million passengers in 2024, a 9.1 percent  increase from 2023, whereas  South Africa handled 25.68 million passengers, growing seven per cent  year-over-year.

She said Kenya’s traffic surged 15 per cent, while Brazil recorded   120 million passengers in 2024, and Indonesia’s  passenger numbers jumped by over 5.6 per cent.

“Nigeria maintains its position as Africa’s largest economy by GDP, yet this economic heft doesn’t translate to the aviation sector’s performance. While economic challenges exist across all the countries mentioned, they’ve managed to insulate and even grow their aviation sectors despite these headwinds.”

“The first misconception we must dispel is that GDP size, population size or growth rates determine  aviation sector health.

“It doesn’t. Aviation thrives on a complex ecosystem of factors: regulatory environment, infrastructure quality, airline competition, currency stability, tourism appeal, and business travel demand. Nigeria struggles across multiple dimensions of this ecosystem.

“Consider currency stability. While the Brazilian real, South African rand, and Egyptian pound have faced challenges, none have experienced the extreme volatility of the naira in recent years. Airlines operate on thin margins with significant foreign currency exposure for aircraft leasing, maintenance, and fuel. “Currency instability creates pricing challenges that ultimately suppress demand.

“Countries experiencing aviation growth have implemented deliberate policy frameworks that Nigeria has yet to adopt effectively. Brazil’s aviation sector benefited from regulatory reforms that increased competition and lowered fares. “Indonesia’s government prioritized aviation infrastructure as part of its economic development strategy, recognizing air connectivity as essential for an archipelago nation.

“Egypt has leveraged tourism as a key driver for aviation growth, with policies specifically designed to increase visitor numbers.The country invested heavily in airport infrastructure and marketing campaigns to position itself as a premier destination. Tourism contributes approximately 12 percent  to Egypt’s GDP, creating a natural demand pool for aviation services,”, she surmised.

She said Kenya Airways and Ethiopian Airlines have built successful hub-and-spoke models connecting Africa to global destinations, supported by government policies that recognize these airlines as strategic national assets. The Kenyan government has implemented visa reforms and destination marketing that drive tourism and business travel.

But, Nigeria’s aviation policy environment, the expert said by contrast, has been characterized by inconsistency and fragmentation, multiple agencies with overlapping mandates create regulatory complexity.

Foster listed other challenges erecting a roadblock to the growth of aviation to include,  policy reversals and sudden changes creating  uncertainty for investors and operators alike.

She said: “Airport infrastructure quality directly impacts passenger experience and operational efficiency. Brazil invested heavily in airport modernization ahead of the 2014 World Cup and 2016 Olympics, with many facilities now operated by private concessionaires under performance contracts.

“South Africa’s airports rank among Africa’s best, benefiting from significant upgrades for the 2010 World Cup.

“Indonesia launched an ambitious airport development program to support its archipelago geography, recognizing that air travel is essential for economic integration across its 17,000 islands.

“The country has focused on building and upgrading regional airports to improve domestic connectivity.

“Nigeria’s airport infrastructure, despite some improvements, continues to lag. The new terminal at Lagos’s Murtala Muhammed International Airport represents progress, but many regional airports remain substandard. Power outages, inadequate facilities, and operational inefficiencies persist across the network.

“Infrastructure development requires sustained investment and long-term planning. Countries showing aviation growth have treated airport development as a national priority with dedicated funding mechanisms. Nigeria’s approach has been more piecemeal, with projects often delayed by funding gaps and changing priorities.

“Compared to peers like Egypt and Kenya, Nigeria’s government and private sector have under invested in aviation infrastructure, digitization, and skills development.The country suffers from insufficient incentives for private sector airline growth and innovation.

“Nigeria has seen multiple airline failures over the past decade. The operating environment remains challenging, with high costs for fuel, maintenance, and financing. The collapse of Air Nigeria, Arik Air’s receivership, and other airline failures have reduced capacity and competition in the market, despite smaller new entrants to the market.

“Successful aviation markets typically feature a mix of full-service and low-cost carriers serving different market segments. Nigeria’s airline ecosystem lacks this diversity, with most carriers operating similar business models and similar routes, targeting the same customer segments – against a dysfunctional, unstrategic backdrop.

“Many domestic routes are underserved or lack adequate frequency. Nigeria lacks robust hub development to effectively compete regionally with countries like South Africa  – Cape Town and Jo’Burg –  or Kenya  – Nairobi. Insufficient intermodal transport connections render air travel less convenient and more costly.

“Flight delays, cancellations, and inconsistent service erode trust. Refund processes are often lengthy or denied, reducing passenger willingness to book in advance. Ticket prices are perceived as unaffordable relative to average income, particularly for domestic travel.

“Although safety has improved, Nigeria still battles with a perception issue globally. High insurance premiums for Nigerian-registered aircraft drive up operational costs.

“Most of Nigeria’s over 30 airports operate significantly below capacity. Without an established Maintenance, Repair, Overhaul  hub, the majority of aircraft servicing must be conducted overseas, substantially increasing both downtime and expenses.

“Nigeria’s tourism potential remains largely untapped. Despite rich cultural heritage, diverse landscapes, and vibrant cities, the country attracted fewer than 1.5 million international visitors pre-pandemic. Security concerns, visa complexities, and limited destination marketing have constrained growth in this sector.

“Nigeria, despite its economic size, has struggled to position itself as West Africa’s business hub. Infrastructure deficiencies, security challenges, and regulatory complexities have limited its appeal for regional headquarters and business events.

“Aviation is inherently dollarized. Aircraft, parts, maintenance services, and even training often require foreign currency payments. Countries with more stable currencies and foreign exchange policies create more predictable operating environments for airlines.

“Nigeria’s foreign exchange challenges have created significant headwinds for the aviation sector. Airlines have faced difficulties repatriating funds, leading some international carriers to reduce capacity or withdraw entirely in the past. “The naira’s volatility makes pricing challenging and creates financial uncertainty for operators.

“Countries showing aviation growth have generally maintained more consistent monetary policies and worked to ensure foreign exchange availability for strategic sectors like aviation. Egypt, despite currency challenges, implemented mechanisms to ensure airlines could repatriate funds. Brazil maintained relatively open foreign exchange markets even during economic difficulties.”

She identified  lack of a clear, long-term aviation master plan as part of the obstacles  hampering progress in the Nigerian aviation sector in addition to inconsistent government support.

Foster said: “National carrier ambitions have seen reversals, litigation, and unclear partnerships, which have disrupted market confidence. Regulatory bodies sometimes act more as revenue generators than facilitators, which affects ease of doing business in the sector.”

Notwithstanding the challenges, Foster said Nigeria’s aviation sector has immense potential with its over 200 million people, the largest economy in Africa, and significant diaspora communities worldwide.

She said the fundamentals for a thriving aviation market to  unlock this potential requires deliberate policy choices and strategic investments.

“First, regulatory reform must create a more conducive operating environment. Streamlining the multiple agencies overseeing aviation would reduce compliance costs and improve efficiency. Consistent, transparent policies would attract investment and enable longer-term planning by operators.

“Second, infrastructure development needs prioritization and funding. Public-private partnerships have proven successful in Brazil and elsewhere for airport development.

“Nigeria could adopt similar models to upgrade its airport network without straining public finances. But the template must be right, 80 year concessions with inexperienced concessionaires is not likely to produce the desired results.

“Third, airline ecosystem development requires attention. Policies that reduce operating costs, improve access to financing, and enable different business models would foster a more diverse and resilient airline sector. Supporting the development of a strong flag carrier while enabling low-cost competition would serve different market segments.

“Fourth, tourism development represents a significant opportunity. Cheaper and more simplified visa processes, destination marketing, and security improvements could unlock Nigeria’s tourism potential, creating natural demand for aviation services.

“Finally, monetary policy stability is essential. Creating mechanisms to ensure airlines can access foreign exchange and repatriate funds would improve the sector’s financial sustainability and attract international carriers, and enable indigenous airlines to operate more efficiently.

“The passenger statistics cited at the beginning tell a story beyond mere numbers. They reflect economic potential either realized or squandered. They indicate connectivity that either enables or constrains business opportunities. They represent jobs created or lost in one of the world’s most dynamic industries.

“Countries showing aviation growth have recognized air connectivity as a strategic economic asset rather than merely a transport mode. They’ve implemented policies that enable growth despite broader economic challenges. “They’ve invested in infrastructure that facilitates efficient operations. They’ve created conditions where airlines can operate profitably and sustainably.

Nigeria has the potential to join them. The country’s size, population, and economic fundamentals provide a strong foundation for aviation growth. Realizing this potential requires policy choices that prioritize long-term sector development over short-term considerations.

“The question isn’t whether Nigeria can develop a thriving aviation sector comparable to its peers. The question is whether it will make the choices necessary to do so. The data shows what’s possible when countries prioritize aviation development. The opportunity awaits.”

A group, Aviation Round Table (ART) has cautioned aviation agencies and the Ministry of Aviation and Aerospace Development against hasty pronouncements when aircraft incidents or accidents occur in the country.

Speaking at its Q1 2024 breakfast meeting in Lagos, its President, Air Commodore Demola Onitiju (rtd), said such reactions are dangerous and risky even as they constitute violation of due process.

According to him, incidences of runway incursion and excursion are not unusual in aviation industry, adding that many of the issues that contribute to such developments could only be resolved when the regulatory and investigating bodies coordinate their findings and work together.

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He said: “Knee-jerk reaction to aircraft incidents and accidents is dangerous and hurtful. Incidences of runway incursion and excursion are not unusual in aviation practice.

Runway excursion prevention is complex because the effect of the risk and resilience factors is highly cumulative. Some of the factors that contribute to runway excursions include but are not limited to -the runway condition, maintenance and reporting. To this list, add- aircraft performance and operations, collaborative approach path management and adherence to robust policies for safe descent and approach planning, stabilised approach, safe landing and go-around.

“The solution to these challenges can only be done together by the Nigeria Civil Aviation Authority (NCAA) and the Nigeria Safety Investigation Bureau (NSIB) in a coordinated way not through arbitrary pronouncements that are not only meddlesome, dangerous and risky but violates due process.”

The recent grounding all aircraft in the fleet of  DANA Air on account of runway excursion at the Lagos Airport by the NCAA on the orders of the Ministry of Aviation had generated a backlash in the industry.

ART however advocated the strengthening of NCAA’s autonomy consistent with the Act establishing it in line with global best practices.

“We made this call to ensure that it is adequately insulated from short-term political pressure. In the Nigerian circumstance, the NCAA is expected to be both benign and harsh in its spontaneous enforcement of standards and rules to retain our trust,” he said.

In order to create a conducive environment for aviation and tourism to thrive, the group urged President Bola Tinubu to initiate deliberate policies to review and suspend taxes, tariffs and charges, within a given time frame, in order to bring succour to aviation and allied businesses in the country.

It added that such policies should address airline survival and growth with a view to lowering the recent astronomical increase in air fare on the domestic scene.

The ART also renewed its call for a comprehensive review of Bilateral and Plurilateral Air Services Agreements to suit the sector’s present circumstances.

It recommended the development of a local hub to effectively protect local airlines against the predatory foreign airlines granted multiple entry into local destinations.

“The ART has variously embarked on policy advocacy on the need to balance the interests of local tourism players and the need to encourage the growth of budget airlines.

“For us in the ART, the interest of the Nigerian state and her people must be paramount at all times. Attractive as Open skies might appear to be, modifications as would stimulate fair competition and reciprocal rights must be observed. In our view, Open skies is not devoid of regulation. There must be a balance between its tenets and the national interest. The recent commendable audacity of the Air Peace Airline to embark on the Lagos- London Gatwick route and the dust it generated is a case in point. The Nigerian State must rise up in defence of its own without apology,” Onitiju said.

Former President, Nigerian Bar Association (NBA) Dr Olisa Agbakoba (SAN), has canvassed the passage of a legislative instrument- Fly Nigeria Act, as one of the measures the  Federal Government could utilise to protect indigenous carriers from the predatory practices of foreign carriers.

The move, he said, wouldserve as both legal regulatory instrument to protect indigenous carriers from the antics of foreign carriers engaging  in pricing war on international routes.

He said such an instrument,  will make it compulsory  for officials, and consultants of government projects  travelling with public funds on official engagement to patronise Nigerian carriers on international routes.

Speaking in a recent interview in Lagos, Agbakoba said the experience of a Nigerian carrier – Air Peace -1 on the Lagos/London has not been salutary given the alleged predatory practices of European/African carriers, which slashed airfares beyond 60 per cent on their routes since the indigenous carrier made foray into the route.

He said one of the ways governments protect their carriers is to invoke the necessary legislative / regulatory framework to save indigenous businesses from  practices that are beyond competition for stronger players, which want to edge them out .

Agbakoba said indigenous carriers such as Air Peace could be protected to contribute to the country’s economic development if the Federal Government hastened  instruments such as the Aviation Cabotage Act.

Such an instrument, Agbakoba said, will provide an enabling legal and policy environment for national airlines, which is a fundamental factor contributing to the growth and sustenance of Nigerian airlines.

He said : “ Proposals such as the Fly Nigeria Bill , Aviation Corporate Governance Code and the domestication of international conventions have been suggested to address these challenges.”

He said the Olisa Agbakoba Legal Chambers has been working on these issues for the past 15 years , advising several ministers , with the most current minister being the most responsive.”

The AOL Fly Nigeria Act, Agbakoba said should be modelled after the Fly America Act, which aims to apply public funds for air travel exclusively to national carriers, generating passenger traffic and supporting their international growth.

He listed other critical components  of proposed reforms in the aviation sector to include : amendment of the Nigerian Civil Aviation Authority Act to introduce a strong governance code as most national airlines are one- man businesses.

Agbakoba said : “ There should be domestication of international instruments. There should be enforcement of bilateral air services agreements  and  concessioning of airports.

“These reforms will free the government from direct management of airports, create jobs, drive revenue and allow for a limited government focused on policy while enabling private sector growth.

“Recent success of Air Peace , with its direct flights to London and Dangote Group, with its world class refinery , have brought down prices and reduced pressure on foreign exchange. These achievements highlight the potential of the private sector – driven growth in Nigeria.

“We are committed to working with the Federal Government and other stakeholders to facilitate the passage and implementation of comprehensive aviation sector reforms , unlocking the industry’s potential and positioning Nigeria as a major player in the global aviation market.”

According to him, “because we showed the Aviation Minister our long history, we showed him all the letters going back something dating back to 15 years which we gave to the various ministers of aviation. So, he was satisfied and said, you guys have been working hard.

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 “So, we said to him, if you stay on the course, you will achieve success.

“If the British government refuses to reciprocate the 14 spaces that British Airways (BA) is occupying, not talk about Virgin Atlantic. Then you tell them they won’t come to Nigeria.

“So, when that happened, they grudgingly allowed Air Peace to come to the UK and look at what happened. Look at the space that has opened. Look at how the airfares dropped by 60 per cent.

 “So, we are very happy that this has occurred in the aviation industry. But we have told the minister that it must be sustained. Because the British government is doing all it can to frustrate Air Peace, giving them the worst slots at Gatwick Airport.

 “So, there is still an advantage. But if you look at British Airways economy class price it is valued at N3 million, while Air Peace economy class costs N1.2 million. People will prefer to take Air Peace and then they will take a train from Gatwick to Paddington or Gatwick to Victoria Station. So that is competition. So, there is a necessity to keep the competition framework going. The federal government is doing a great job.

“So, it is this structural framework government needs to bring to bear. Government has no business being in business. The last problem with the last minister was he wanted to run the airlines himself. That is not his job?

“The job of the minister is to create the policy environment to enable actors to now play. If Keyamo wanted to do a national carrier now, we would still be where we are.

“But he realised that it wasn’t his role. His role was policy. So, he took the Chairman of Air Peace, Allen Onyema by the hand, and landed in London, and said to them, this is the man who we want to give the rights to fly, and he insisted, if you don’t give us that right, then under the principle of reciprocity, we won’t allow you to come, and then there it is.”

The Federal Government has concluded  plans to carry out an overhaul of the aviation eco – system to accommodate  only carriers that  demonstrate viable sustainability plan, increased fleet size, sound business models and other criteria to be rolled out by the regulatory authority, The Nation has learnt.

To achieve the objective, experts said the Federal Government is exploring options, including possible consolidation of local carriers,  with at least a minimum of six aircraft, guarantee on local maintenance of the equipment through partnership with original equipment manufacturers, flexible lease arrangements and other considerations.

Investigations by The Nation show that the new move to clean up the air transport space may not be unconnected with audit reports of some  local carriers in the last few years, which indicate high debt to capital ratio, inability to meet financial obligations to personnel, insurers, lessors, aviation fuel suppliers, suppliers of aviation catering , vendors ,  inability to finance aircraft maintenance according to  schedule,  paucity of funds for requisite crew training  and other mandatory  regulatory requirements.

Significantly, a source hinted that the Ministry of Aviation is miffed over discoveries over the poor financial state of local carriers, which could barely run flights operations from revenue generated from tickets sales.

A 2022 technical and financial audit of one of the local carriers made public at the weekend by the Nigerian Civil Aviation Authority (NCAA) exposed the underbelly of the beleaguered carriers.

Worried over the optics such audit report has triggered, the government has begun moves to recertify existing carriers to ascertain their technical, safety and financial health.

Investigations further reveal that government is also worried that many operators, who hurriedly got into airline business without carrying out proper financial due diligence, continue to struggle to get their old aircraft out of offshore maintenance facilities due to inadequate running capital.

To drive the proposed arrangement, the Federal Government, an expert familiar with the sector’s overhaul, hinted is looking at how deliberate policy , either by way of waivers, guarantees with aircraft lessors / original equipment manufacturers could put local carriers in strong footing either in leveraging operational  capital or equipment.

The expert, who pleaded not be named said the government is wary of providing direct capital injection to operators because of previous experience by past administrations.

Billions of naira ploughed into airlines as Intervention Funds many years ago were misapplied.

The Asset Management Corporation of Nigeria (AMCON), injected over N120 billion to revive struggling airlines.

The money was released by the Central Bank of Nigeria as part of a N500 billion intervention fund. Ten airlines benefited from the fund through loans with tenure of 10 to15 years. The loan was monitored by the Bank of Industry.

Out of the 10 airlines, three, Air Nigeria, Chanchangi Airline and IRS, have folded up. Other beneficiaries are Arik, Dana, Aero, Kabo, Overland, First Nation, Odengene.

The expert said the Ministry of Aviation is looking at tightening the noose in the conditions required for fresh applicants seeking to get either an Air Transport License (ATL), before such interested investors could scale the hurdle for an Air Operators’  Certificate (AOC), granted by the Nigerian Civil Aviation Authority ( NCAA).

Last week, Minister of Aviation and Aerospace Development, Festus Keyamo, said there is no going in carrying out financial , technical and safety audit of existing carriers in order to regain the confidence of the flying public.

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Keyamo said the Ministry of Aviation and Aerospace Development will continue to take decisions that will protect the interest of the country, not minding the views being canvassed by experts in the aviation industry.

He said it is the responsibility of the Federal Government to ensure that only carriers that are solvent and have demonstrated the financial and technical capability are allowed to operate on the air transport space.

He said the high attrition of local carriers in the last few decades suggests that many investors make foray into airline business without carrying out feasibility studies on the Business.

Keyamo said :” The Federal Government is going to carry out an overhaul of the air transport sector to ensure that interests and individuals that are holding the industry on its kneels are cleared out.

“There is no going back on this, and the government will be looking at the fleet size of existing carriers , the Nigerian Civil Aviation Authority is already trying to implement the minimum of six aircraft policy. That will be coming in place.

“There will get other forms of interventions to ensure we have viable and strong carriers.

“The industry may require some some of consolidation, such as the type considered for the banking sector by the Central Bank of Nigeria. That way, we are confident that local carriers have strong financial base to guarantee safe operations.”

Investigations reveal that local carriers are already jittery over the proposed overhaul , which may forced sone operators to consider merging.

To starve off any backlash of the impending overhaul, done operators , it was learnt are already reworking their business plans to meet up with the revised requirements to be rolled out by the government.

Speaking in an interview, Managing Director of Topbrass Aviation Limited, Dr Roland Iyayi said the government should look at how to assist local carriers rather than embarking on kneel jerk reaction over incidents involving DANA Air.

He said :” We should learn from our past failures and plenty abound, to recognize that solutions for things like this are usually found when we take a holistic approach to problem solving.

“Our aviation system is tottering on the brink of near collapse and our present approach of dealing with the consequences of a much bigger problem will not help it.”