The Nigerian aviation industry is currently facing significant headwinds as domestic carriers grapple with shrinking routes and declining passenger volumes. Despite a growing demand for air travel—driven by insecurity on the roads and deteriorating infrastructure—local airlines are struggling to maintain profitability. Insights from Charles Grant, Chief Financial Officer at Aero Contractors, have highlighted mounting pressures threatening the sustainability of Nigerian-owned airlines, signaling an urgent need for policy intervention.
Grant noted that while demand for both domestic and international flights remains robust, Nigerian carriers are not capturing their fair share of the market. Instead, international and regional operators such as RwandAir and ASKY Airlines continue to expand in Nigeria, exploiting opportunities that should ideally be dominated by local airlines. This phenomenon, often referred to as “strategic leakage,” underscores how potential domestic growth is being ceded to foreign competitors.
Operational challenges are compounding the problem. Rising fuel costs, maintenance fees pegged to the dollar, and an array of taxes and levies are driving up the cost of doing business. Bureaucratic inefficiencies further add to operational strain, limiting airlines’ ability to compete effectively.
The lack of consistent government support and clear regulatory frameworks remains a critical barrier. Grant emphasized that if Nigeria truly seeks to revive its aviation sector, policymakers must create a fair and supportive environment for local carriers. Measures such as regulatory simplification, tax incentives, and the development of domestic routes could serve as crucial steps toward stabilizing the industry.
Until such interventions are implemented, the Nigerian aviation sector remains a story of unrealized potential. While the industry has the capacity to soar, domestic carriers continue to struggle, effectively grounded until the right policy and economic conditions enable them to take off.
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