Experts lament factors affecting growth of Nigeria’s aviation sector, propose how to harness global benefits

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Air transport (Aviation) plays a crucial role in global economic development. This is not just because the industry provides the fastest means of transportation but more so due to the connectivity it provides between people, cities, and countries.

According to the International Air Transport Association, traffic numbers are not the only way to look at activity in the airline industry, stressing that connectivity adds a fundamental dimension to the industry’s analysis, as it ensures the seamless flow of goods, people, and ideas necessary to support the global business cycle.

Data from IATA also reveals that the sector currently operates over 100,000 commercial flights taking off and landing worldwide daily, averaging more than 400 departures each hour.

The industry has also experienced swift growth in the development and innovation catapulting it a leader in safety and dependability in the transportation sector. Thanks to years of committed research, technological upgrades, and strict regulations. Consequently, this transportation method enables travel and facilitates worldwide connections, trade, and cultural exchange in unthinkable ways.

Current estimates from the International Civil Aviation Organisation show that the demand for air transport is forecasted to increase at an average rate of 4.3 percent per annum over the next twenty years. Should this growth path be achieved, the air transport sector is expected to produce approximately 15.5 million direct jobs and contribute $1.5 trillion to the global GDP.

The Nigerian aviation industry is not left out as it has also witnessed some levels of growth in passenger traffic and flight while projections indicate higher potentials of growth.

According to the National Bureau of Statistics, the number of domestic and international passengers in Nigeria increased by 43.41 percent and 57.61 percent, respectively in 2021, compared to 2020.

“While the NCAA has made strides in implementing international safety standards, there remains an urgent need for more consistent oversight, enhanced transparency, and effective policymaking. The complexity of the regulatory environment poses challenges for both domestic and foreign airlines, subsequently stifling potential investments in the aviation sector.”

Meanwhile, the Garman statistical research portal, Statista has projected that the flight market in Nigeria will grow at a rate of 10.19 percent annually, reaching a revenue of $1.75 billion in 2025 and $2.58 billion by 2029.

According to Statista, the number of users in the flight market is also expected to reach 25.73 million by 2029, while user penetration for 2025 is projected to be 7.4 percent and is expected to grow by 10.0 percent by 2029.

Whilst these forecasts and prospects of humongous developments in the Nigeria aviation space sound interesting, experts are of the opinion that much more efforts must be put in place to meet global standards to actualize the benefit the industry has to offer.

This is more so, as the industry regulator, the Nigerian Civil Aviation Authority emphasizes the critical and important role of the sector in the nation’s transportation system and the economy in general.

According to the NCAA, Nigeria, a country with a population of over 200 million, currently has 20 airports and unspecified regulated airstrips and heliports; 23 active domestic airlines; 554 licensed pilots; 913 licensed engineers and 1,700 cabin personnel. The country currently has Bilateral Air Services Agreements with over 78 countries.

However, harnessing the opportunities such relationships offer remains a critical challenge.

For example, the country recently attained the American Federal Aviation Administration (FAA) International Aviation Safety Assessment (IASA) Category One Certification. While this certification offers Nigerian registered carriers the opportunity to access the United State of America (USA) market, other critical factors have continued to keep it stagnant and untapped.

Challenges facing Nigeria’s aviation industry
In a recent report titled, “Navigating the Future of Global Aviation: Is Nigeria Ready for the Next Leap?” published by Phillips Consulting, it was noted that the Nigeria aviation space still has a long way to go in meeting global standards.

The report stated that while the country’s aviation sector has immense potential, it still faces significant challenges that must be addressed to ensure sustainable growth.

“As the industry evolves, driven by new technologies and government policies, there is a growing need for innovative solutions to navigate these challenges and unlock the full potential of Nigeria’s aviation sector,” the report stated.

The report highlighted seven key challenges of the sector namely, inadequate infrastructure, scarcity of aviation fuel; regulatory and governance framework; finance; proliferation of government agencies; flight delay and cancellation and Cybersecurity and Data Privacy.

The report noted that many facilities at Nigeria airports are outdated, poorly maintained, and suffer from limited capacity at major airports, leading to frequent flight delays and cancellations. These factors adversely affect customer satisfaction and diminish the sector’s overall efficiency.

The experts at Phillips Consultants noted that the scarcity of aviation fuel and elevated operational costs present considerable obstacles for airlines. They stressed that the volatile pricing of aviation fuel, alongside high taxes and the devaluation of the naira, complicates the ability of airlines to maintain competitive pricing structures.

“Numerous airlines have faced difficulties in achieving profitability, resulting in some reducing their flight routes or suspending operations altogether due to escalating costs,” the report stated.

The report insisted that the sector’s regulatory and governance framework remain the subject of concern.

“While the NCAA has made strides in implementing international safety standards, there remains an urgent need for more consistent oversight, enhanced transparency, and effective policymaking. The complexity of the regulatory environment poses challenges for both domestic and foreign airlines, subsequently stifling potential investments in the aviation sector,” Phillips Consultants noted.

Evaluating the role of finance in the industry, the report stated that, “Exorbitant charges and trapped foreign airline revenues seem to be damaging the country’s image. The International Air Transport Association (IATA) at different fora in Africa made it known that trapped airline revenue in Nigeria was one of the highest in the world.”

It however acknowledged a report from the Central Bank of Nigeria which stated that all outstanding payments to foreign airlines have been cleared and applauded the development.

The report identified proliferation of government agencies with overlapping functions as a major factor responsible for exorbitant charges for services and businesses in the aviation industry and other sectors of the economy.

Flight delay and cancellation was also a key issue bedeviling the sector.

“One significant factor diminishing the enjoyment of air travel is the prevalence of flight delays and cancellations, coupled with airlines’ general indifference toward the rights of their passengers,” the report stated.

Finally, cybersecurity and data privacy: The nation’s preparedness to adopt smart airport technologies remains constrained by cybersecurity and data privacy regulation challenges and the critical power and digital infrastructure issue.

Ticket racketeering threatens passenger safety
From ticket racketeering to sale of fake yellow cards, Nigerian airports have become ideal places for all forms of illegal business. These illegitimate businesses have continued to thrive at airports despite measures put together by airlines and the Federal Airports Authority of Nigeria to address them.

Last year, Turkish Airlines said it dismissed seven Nigerian staff because they violated various ticketing reservation rules that cost the airline over $600,000.

A statement by the Turkish airline said, “Upon discovering the violations, the airline immediately engaged the Union in various discussions on how to address the said violations.

“Specifically, the Union was invited and acted as a member of the disciplinary committee against the erring employees, where it was determined, after the presentation of irrefutable evidence detailing the employees’ wrongdoings that the employees were liable for gross misconduct and ought to be dismissed.”

At domestic airport terminals, airlines’ staff and touts have continued to make money off the plane shortages experienced at airports.

According to findings, tickets of passengers unable to board are resold to highest bidders at terminals during flight departures.

Secondly, employees of airlines block seats on their websites, preventing passengers from making bookings. These unscrupulous workers, in turn, sell the tickets at higher rates at airport terminals.

Moreover, touts buy tickets from airlines only to resell at higher rates to desperate passengers, using fake ID cards to perpetrate their illegalities.

The Managing Director and CEO, Topaz Travels and Tours, Susan Akporaiye, said ticket racketeering could be in different forms, noting that it is common at local airlines.

The former president of the National Association of Nigeria Travel Agencies further said that unscrupulous employees hack into airlines’ websites and issue tickets, noting that the money does not go into airlines’ coffers.

Akporaiye said that there are allegations that some staff deliberately block seats so as to resell them to desperate passengers.

“A client of mine told me that she needed to be in Lagos and the flight time was moved.

Incidentally, she was informed of this at the airport. With this development, there was no way she could meet the event she was going for. She tried to get another airline but could not.

“Someone approached her and told her he could give her a ticket and that some seats were cancelled,” she explained.

Yellow cards
Passengers travelling to African destinations have to visit the Port Health Services at the toll gate close to the Murtala Muhammed International Airport in Ikeja, Lagos, to obtain yellow fever vaccination cards.

The yellow card is an essential travel document within the Economic Community of West African States region. However, more often than not, yellow card applicants are told that the cards have been exhausted.

The passengers are given forms endorsed by the Port Health Services to fill after they have received vaccines. These forms serve as an alternative to the digital yellow cards.

Despite this provision, the sale of fake yellow cards has continued at Lagos international airport. Passengers have complained in recent times that when the forms are presented to the staff, they still demand for yellow cards.

A passenger travelling to Senegal, Chijioke Nnamani, shared his experience.

“Despite the form provided by Port Health Services, the airline workers made me believe that the form might not be accepted at the port of arrival. Worried and confused, the staff quickly recommended that a card be given to me if I was interested.

“I told them I had already received the vaccine and didn’t need another. I was told no other vaccine would be given to me; just the card,” Nnamani said.

Nnamani said he was asked to pay N15, 000 for the card.

The following day, he entered Blaise Diagne International Airport but somehow was not comfortable presenting the card and decided to show the form he obtained from Port Health Services.

He said the form was accepted and he was allowed into the country.

Undeclared luggage
Undeclared luggage is a recent trend that has become a threat to safety.

Domestic airlines have been increasingly getting passengers to pay for their luggage in a bid to raise extra cash to offset high jet fuel costs in Africa’s most populous nation.

Investigations show that some employees are now conniving with passengers to declare false luggage volumes. Money exchanges hands during the process.

The chairman and founder of Air Peace, Allen Onyema, said at a recent stakeholders’ meeting that airlines’ staff now connive with passengers to under-declare luggage in exchange for money.

Onyema said the troubling trend could lead to air accidents because the pilot would think the aircraft is carrying a normal load factor, not knowing the aircraft is overloaded. This, he said, could impact passenger safety.

The cargo load factor (CLF) measures how efficiently an airline utilises its capacity, calculated by dividing the total cargo tonne-kilometers (CTKs) by the available cargo tonne-kilometers.

Airlines use CLFs to assess the efficiency of their cargo operations and identify areas for improvement.

With the new trend, airlines are unable to assess efficiency of their cargo operations.

Provocations
Right from the security checkpoints at the entrance of the airport, officials give passengers the impression that they are potential criminals with questions like, ‘Where are you going to?’ ‘What are you travelling for?’ ‘What is inside your bag?’ Passengers have raised concerns that these questions are only asked at Nigerian airports or when they are suspected to carry contrabands. Some passengers are quick to grease the palms of officials to avoid further scrutiny.

Customs and staff of the National Drug Law Enforcement Agency do their random checks and profiling of passengers. However, in some cases, once passengers become generous by giving these officials money, their security checks are faster and sometimes waived.

Redefining future of aviation in Nigeria
Despite these challenges, Senior Digital Learning Advisor, Onesimus Ocheho, says all hopes are not lost as he foresees that innovation is critical to shaping the future of aviation in Nigeria.

He listed some recent innovations in the sector as technological advancement; development of new airport terminals; establishment of maintenance, repair, and overhaul (MRO) facilities; the Cape Town Convention; and Public-Private Partnerships (PPPs).

“Technological advancements enhance operational efficiency within the industry as numerous airlines embrace digital ticketing, booking, and customer service platforms. This transition towards digitisation not only improves the customer experience but also facilitates a reduction in operational costs for airlines. The new International Smart Terminal Building being constructed at the Victor Attah International Airport in Akwa Ibom State is set to be an aviation game changer in Nigeria.

“Exploration of new technologies related to aviation safety and air traffic management is underway. The Nigerian Airspace Management Agency (NAMA) is actively modernising its air traffic control systems, which is expected to lead to enhanced safety and more effective management of Nigeria’s increasingly congested airspace. Such technological advancements are particularly essential, given the rising number of flights driven by increasing domestic demand and the expansion of international routes,” Onesimus stated.

Elaborating on the development of a new airport terminal; Onesimus said, the development of new airport terminals and the expansion of existing facilities signify substantial progress.

“For instance, the recently completed terminal at Nnamdi Azikiwe International Airport in Abuja is part of a broader initiative to upgrade Nigeria’s aviation infrastructure. These expansions are designed to enhance capacity, improve the passenger experience, and elevate the competitiveness of Nigerian airports on the global stage.”

According to him, the government decision to prioritise the establishment of maintenance, repair and overhaul (MRO) facilities within Nigeria as a welcome development.

“Nigerian airlines are required to send their aircraft abroad for maintenance, a process that incurs substantial costs and requires significant time. By developing MRO facilities domestically, the government intends to decrease costs for airlines and generate employment opportunities within the aviation sector,” he stated.

On how the Cape Town Convention is expected to impact the industry positively, Onesimus said, “Nigeria’s global aviation rating improved significantly, rising from 49 to 70.5 after the country fully complied with the Cape Town Convention on dry aircraft leasing. The Aviation Working Group, co-chaired by major industry leaders, Boeing and Airbus, announced this increase in September 2024.

“Furthermore, Nigeria’s compliance score rose to 75.5 after preparing and signing the Practice Direction. This new directive provides legal support for lessors, allowing them to repossess their aircraft from Nigerian carriers in non-compliance with lease agreements, with the backing of the Nigerian courts.”

Onesimus expressed confidence in the increase in Public-Private Partnerships (PPPs) especially in the facilitation of infrastructure development.

“Several airports are undergoing privatisation efforts, allowing private investors to participate in modernising and managing critical airport facilities. This approach has the potential to enhance operational efficiency and service delivery while alleviating the financial burden on the government,” he stated.

Nigeria’s Minister of Aviation and Aerospace Development, Festus Keyamo, is confident that the sector is currently undergoing enormous rejuvenation that will position it to a rightful place in the global aviation market.

Speaking at the 5th Edition of the 2025 of the Ministerial Press Briefing in Abuja recently, Keyamo said his ministry is strategically positioned on five key pillars to deliver value for the nation and all stakeholders in the industry.

He listed these pillars to include: Ensure strict compliance with safety regulations; Support local airline businesses; Improvement of infrastructure; Development of human capacity; and Optimizing revenue generation.

On what the ministry has achieved under the administration of President Bola Tinubu, Keyamo said, the Ministry has helped facilitate a mending of Nigeria’s bilateral relationship with the UAE, including the signing of a new Bilateral Air Services Agreement. Emirates Airlines is now back servicing Nigeria, since October 1 last year; and has also entered into a code-sharing agreement with Air Peace.

According to him, the new Africa Aviation and Aerospace University in Abuja — the newest agency under the Ministry — has now commenced full academic activities.

“Several airports are undergoing privatisation efforts, allowing private investors to participate in modernising and managing critical airport facilities. This approach has the potential to enhance operational efficiency and service delivery while alleviating the financial burden on the government”

He explained that the ministry under him was able to resolve a protracted land dispute that had stalled the construction of the Abuja Second Runway for over a year; “this success has enabled contractors to commence work.

“Alongside the new Second Runway, infrastructural upgrades also ongoing at aviation facilities nationwide (expansion of apron in Lagos; runway resurfacing in Lagos; dedicated power line at Enugu Airport; airfield lighting for Runway 18R in Lagos” he stated.

On the protracted financial crisis that faced the industry prior to his assumption of office, he said, “Successful collaboration with the Central Bank of Nigeria to resolve a longstanding issue of trapped airline funds, which has helped boost foreign airlines confidence in Nigeria’s aviation sector.”

The Ministry within the period under review was able to secure reciprocal operating rights for Air Peace on the UK-Nigeria route, breaking a longstanding monopoly, fostering competition and reducing airfares, he stated.

Other key achievements he highlighted includes: Facilitated replacement of the defunct Italian flag carrier, Alitalia, with Neos SPA Airlines, which has now commenced direct flight services from Milan to Lagos; Facilitated implementation of US-Nigeria Open Skies Agreement, opening new opportunities for local airlines to operate on the Nigeria-U.S.

route; Initiated the Fly Nigeria Act – which will now go to the National Assembly for passage — to mandate prioritization of Nigerian flag carriers for government-funded travel, a bold move to support local airlines and stimulate economic growth; Inaugurated a Task Force to address illegal private charter operations, with its security and revenue implications. The Task Force has submitted its report, making far-reaching recommendations that will be implemented.

On PPP, the Minister said, “Through a Public-Private Partnership and collaboration with the Nigerian Immigration Service (NIS), a remodeling of the Arrival Hall at Lagos International Airport’s Wing E has been completed. The next phase will now be a complete rehabilitation of the old Airport Terminal.

“Abuja and Port Harcourt Airports awarded by ACI Africa for outstanding dedication to emergency management and resilience, reflecting improved standards,” he said.
The Ministry, Keyamo said, has successfully overseen the fulfillment of more than 130 vital regulatory compliance requirements by its agencies, demonstrating unwavering commitment to improving safety and quality standards.