Nigeria’s aviation sector is a mixed bag of progress and challenges. The country’s removal from the Cape Town Convention aircraft leasing risk list is a major win, opening access to low-cost, long-term aircraft financing for local airlines.
According to Dr. Richard Aisuebeogun, former Managing Director, Federal Airports Authority of Nigeria (FAAN) and co-chairman of the Nigeria Aviation Awards:
“2025 will reflect the outcome of several impactful 2024 policy reviews aimed at repositioning aviation”
The federal government’s plan to initiate airport concessions is another step in the right direction, aiming to attract private sector investment and improve infrastructure. The Nigerian Civil Aviation Authority (NCAA) has also strengthened oversight and intensified consumer protection. Airlines like Ibom Air and Air Peace are establishing Maintenance, Repair, and Overhaul (MRO) facilities, reducing dependence on overseas maintenance.
But challenges persist. High operational costs, foreign exchange scarcity, and trapped airline revenues are major pain points. “The inconsistency of government policies is a major factor driving the high finance cost and rising airfares,” says Captain Sanusi, Managing Director of Aero Contractors Airlines. Infrastructure deficits, fuel scarcity, and multiple taxations also hinder growth.
Industry players are crying out for policy reforms and government support. “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,” says Dr. Alex Nwuba, President of the Aircraft Owners and Pilots Association of Nigeria.
Despite these challenges, there’s hope on the horizon. The NCAA reports encouraging results from recent government-led reforms, including a new aircraft leasing policy and the implementation of the Irrevocable De-registration and Export Request Authorization (IDERA).
These initiatives have improved Nigeria’s position on the Cape Town Convention index, making it more attractive to leasing companies.
Balami
The Isaac Balami University of Aeronautics and Management (IBUAM) is also doing its part, bridging critical gaps in aviation education and manpower development.
The university’s programs cater to various aspects of aviation, including aircraft maintenance, pilot training, and aviation management.
As Nigeria’s aviation sector continues to evolve, stakeholders are optimistic about growth, citing policy changes and reforms.
“The industry is poised for significant growth, driven by government initiatives and private sector investments,” says Isaac Balami, Founder of 7-Star Global Hangar.
With the right policies and investments, Nigeria’s aviation sector can overcome its challenges and become a major player in the global aviation industry.
