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Need To Fund Nigeria’s Aviation Industry

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15 years ago

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About 80 years ago, Ni

geria joined the league of aviation nations with the celebration of the first flight in Kano. Since its prosperous beginning, the industry has continued to drift like a rudderless ship.

This was the assessment of the Aviation Roundtable (AR), the sector’s watchdog, which described the state of the industry as comatose. Speaking through its president,  Captain Dele Ore and Secretary-General, Samuel Akerele, the AR said the industry had performed below expectation given the strides recorded by other countries which started at the same time with Nigeria.

“The industry in Nigeria is in doldrums”, they declared, pointing out that a cumulative impact of policies, bad decisions, the market competition and financing difficulty is destroying the Nigerian aviation industry.

Obviously, the biggest problem facing the Nigerian aviation industry seems to be lack of serious attention and political will. The economy also has much to do with its strength. It is against this backdrop that the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) before the just-concluded general elections said its members would not vote for any candidate that does not have the interest of the aviation industry at heart or in his agenda. Aviation Roundtables President, Captain Dele Ore, observed that airlines from advanced countries are stronger while those owned by Nigerians are denied the much-needed goodwill and very strong political base for survival.

In an indsturry which does not brook mistakes like the aviation, lack of adequate regulating will result to an attempt to cut corners with possible catastrophic consequences. The airport system the world over runs on support systems, which form the basis of its strength. In Nigeria, it is an orduous task running the airports with low capitalisation, wet and dry leasing of aircraft and unstable manpower retention rate, which are symptoms of an economically weak industry.

Stakeholders are divided over the seeming delay of allocations to managers who are saddled with the task of managing the 21 airports across the country. It is well known that the management of the Federal Airport Authority of Nigeria(FAAN) for some reasons has denied airport managers the needed funds to bring about seamless running of the airports. Attempts to impress on the authorities to fast-track the timely release of either monthly or quarterly allocation to the airports have been fruitless and the dwindling revenue of the airport authorities may have erected roadblock to attempts to bring about seamless operations at the nation’s gateways.

There is no doubt that the World Bank through its security and aviation projects programme is assisting the FAAN in fixing critical airport infrastructure in Nigeria. That is not enough for an industry that is very crucial to the nation’s economy.

Foreign airlines operating in and out of Nigeria are doing very well while the participation of Nigerian carriers is still negligible due to constraints brought about by bad policies of our government.

Unfortunately, the dwindling value of the Naira against other foreign currencies has worsened the situation for Nigerian airlines and it is even more disturbing that the nation has no credit agency exclusively put in place to fund aviation like other sectors of the economy. Furthermore, the interest rates charged by banks and financial institutions on loans are too high for any airline to borrow and operate profitably.

Some of the sore points in the aviation industry include the controversy over the N19.5 billion intervention fund, unfriendly policies, insensitivity in designating local operators on regional and international routes, the high attrition rate of aviation professionals as well as the invasion of lows on the runway of airports amongst others.

While celebrating Nigeria at 50 last October, the management of IRS Airlines said the aviation sector has fared well in the past 10 years but that more needed to be done to sustain the Category One status which only goes to show that the effort of the current administration has moved towards improving security and safety in the aviation sector. The certification of the category one also shows that there is confidence in the industry while passenger traffic has increased, showing that people are being encouraged to fly the various airlines in the country.

Although security at the 21 airports across the nation and a few other facilities have been strengthened in the past ten years to forestall further breaches, government should take second look at the aviation sector with a view to financing and working cooperatively to develop a global standardised approach as there is no doubt that the aviation sector still face a threat of how to sustain the system in the long-term.

For the air transport industry in this country to reach its projected growth potential, aviation authorities must work towards an integrated trans Atlantic system that will achieve standards. The EU, Canada and the US are among the highest in the aviation business in the world so Nigeria must step up her cooperation with these countries to have a clear way forward in the aviation industry.

Last year, FAAN introduced a new credit policy that would enable it to recover the over N20 billion debts owed it by airlines and concessionaires.

Though the policy appears laudable, the implementation has run into a hitch.

The new Director of Finance and Accounts of FAAN, Dr. Azuka Onyia, on her assumption of office, threatened to use every available means to recover FAAN’s debts, but the success of her action remains a matter of debate, how she intends to go about it in an industry where pressure from  Abuja could upturn the action.

Sometime ago, last year to be precise, the Air Transport Services Senior Staff Association of Nigeria passed a vote of no confidence on the Minister of Aviation, Mrs Fidelia Njeze for her inability to carry the industry forward, alleging that the Minister had derailed in repositioning the critical sector.

The association said the minister registered little or no achievements since her coming to office. They cited a case where ATSSAN wanted to adopt a measure to recover debts owned the various parastatals by domestic airlines but when Arik Airline ran to the minister on grounding its aircraft, the minister allegedly gave the impression that they have to take permission from her before they started grounding airlines and the unions were not happy about that. It takes a person with the political will to oversee the management of the aviation sector because the various parastatals including the airports require funds to perform their statutory duties.

Considering  the much complaints by FAAN over lack of funds, one is forced to call for a probe into the activities of the authority as there was an alleged misappropriation of funds in recent time. The Federal Government should provide funds for capital projects that stakeholders can monitor to ensure prudence and transparency.

Nigeria can not afford to lose the hardearned category one because of some unscrupulous elements, who for their personal interests defraud the aviation industry instead of using the resources or revenue coming out from the airports to provide infrastructure. There is seeming  lack of inconsistency in the FAAN management.

This is why the Federal Government must beam its light on the sector with a view to bringing it out of the doldrums.

Government should take urgent steps to address issues of infrastructure decay, the replacement of decaying infrastructure and provision of funds so that the industry can grow. The areas Nigeria needs cooperation or partnership with other giant airlines or countries include safety, security, technology, airport infrastructure, air navigation, ground handling and training, and of course, funding of the aviation sector.

An effective air transport sector is a critical element of a nation’s competitiveness. The international Air Transport Association’s (IATA) global standards and technical expertise can contribute significantly to the development of safe, efficient and environmentally responsible aviation in Nigeria and provide the country with a strong framework to help build an even more competitive Nigerian air transport sector, with the benefits being spread across the economy. The Nigerian aviation industry can achieve a grater standard if its finances are judiciously used with the application of industry-leading management.

Nigeria’s aviation infrastructure is a mess and its needs to get better. There is need for a comprehensive review of the funding of all government agencies at the federal, state and local levels including the airports to enhance productivity and service. Our politicians and leaders must have the political will to drive the aviation industry towards greater achievements, and the time is now.

There is no hard and fast rulers about this because there is a general attitude of mind of politicians about the relationship of travel or air transport expenditure to the total cost of maintaining the airports.

Shedie Okpara

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Airlines Mull New Strategies To  Drive Business Sustainability

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3 days ago

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May 13, 2026

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Airlines and operators in the Nigerian aviation industry are considering a strategic review of their business models in order to mitigate frequent disruptions due to external shocks and ensure sustainable operations.
The strategic business review comes as the Federal Government is wrapping up plans to explore business  opportunities for local carriers, cargo operators and other commercial ventures in the global aerospace market set to hit over $ 900 billion in the next few years.
Part of the initiatives packaged by the government to achieve more participation in the value chain include the engagement of original equipment manufacturers , lessors, investors in the aviation infrastructure space and other interventions. The global aerospace market is valued at approximately $409.09 billion in 2026.
Nigerian airlines, like their global counterparts, had in recent weeks come under serious pressure due to  increase in aviation fuel price, which has created unease in the air transport ecosystem, forcing local carriers  to cut flights frequencies and routes they fly into, in order to remain in business.
The spike in the price of jet fuel is putting pressure in the cost component of airline operations as airlines now spend more money, almost tripping the value it took three months ago to keep airplanes in skies
.
Three airlines, including Ibom Air, Air Peace and Rano Air said they were considering reworking their business and operational models to ensure business sustainability.
The plans by the airlines revolved around optimisation of commercially viable routes and reduction of flights frequency on some routes, as well as cutting down on other operational expenses.
Air Peace said it was reducing  the frequency of its Abuja–London operations to three weekly flights due to fuel supply constraints
Rano Air is considering reducing its flight frequencies and temporarily suspending some routes to enable it remain in business.
Rano Air said the decision to reduce some flight routes followed a sharp rise in Jet A1 aviation fuel prices, which has significantly increased operating costs.
The airline said price surge has made certain routes commercially unsustainable, forcing a reduction in operations until conditions improve.
Rano Air said the suspension decision came after careful evaluation of the growing financial burden caused by escalating fuel prices.
Nigeria with its increasing number of airlines, ground handling companies and other activities taking place at airports is a huge consumer of aerospace equipment and facilities.
Discussions are intensifying with  major aircraft manufacturers, including Boeing, Airbus, Embraer, and Canadian corporation : Bombardier to enable local airlines secure airplanes at terms and conditions that aligns with their business plans.
To achieve this, the Federal Government has signed a strategic partnership agreement with French airplane maker – the Airbus Company.
Industry sources hinted that the pact will go a long way to facilitate easier aircraft acquisition for local carriers which are leveraging available opportunities to deepen their fleet expansion and modernisation drive.
Industry experts have described the move as deft in the broader strategy to attract development into the sector which is in dire need of such intervention.
An operator, who is a former group managing director in a cargo company said the current move by the Federal Government is a good demonstration to attract global leverage for the country’s aviation sector struggling with insufficient funds to remain competitive.
The operator who pleaded not to be  named in print said Nigeria is now  actively transforming its aviation and aerospace sector, by  shifting from a passive market to an active participant through strategic partnerships, pushing for infrastructure development, and private-sector-led initiatives.
Recently, the Federal Executive Council (FEC) approved the establishment of a Nigerian Aircraft Leasing Company – a private-sector-led Special Purpose Vehicle-  to provide local airlines with accessible leasing options.
 Nigeria , also  signed a Memorandum of Understanding (MoU) with Airbus to bolster aerospace development, focusing on training, sustainable aviation fuel (SAF) production, and technical expertise.
As part of follow-up efforts to the Federal Government’s approval for the establishment of a national aircraft leasing company to support domestic airlines, a delegation from Nigeria’s aviation sector has secured deals with Airbus and other aviation institutions in France.
 Last week , Keyamo visited France to explore opportunities for collaboration, capacity development, and aircraft acquisition.
The minister led a delegation including officials from the Ministry and the Nigerian Civil Aviation Authority (NCAA) with  stakeholders from the public and private aviation sectors, including a  team from the  Isaac Balami University of Aeronautics and Management (IBUAM) and 7- Star Global Hangar.
The delegation toured Airbus’ narrow-body and wide-body aircraft assembly plants, as well as helicopter assembly facilities in Toulouse and Marseille, where Airbus executives showcased some of the latest jet and helicopter technologies.
The company , it was learnt also expressed interest in expanding investment opportunities in Nigeria and the wider West African aviation market.
During the visit, the Minister secured opportunities for Nigerian institutions to collaborate with Airbus in the areas of student exchange programmes and capacity development.
An understanding was also reached with Airbus to facilitate partnerships and create a platform through which Nigerian airlines could access new aircraft using a sovereign guarantee framework approved by the administration of President Bola Tinubu.
Recall that Ibom Air had earlier received two aircraft through the current effort, expecting to receive two more brand new aircraft to be delivered to the airline soon.
Speaking on the development , Managing Director of Ibom Air, George Uriesi expressed gratitude to the Nigerian government and Airbus for the collaboration.
Airlines had expressed concerns that the sharp rise in Jet A1 costs has significantly strained flight operations, making it increasingly difficult to maintain some services profitably.
Aviation fuel prices surged from approximately N900 per litre in late February to over N3,000 per litre by April, according to the Airline Operators of Nigeria.
Nigerian airlines had threatened a nationwide operational shutdown from April 20, 2026, citing unsustainable fuel expenses.
To assuage the operators, President Bola Ahmed Tinubu approved a 30 per cent reduction in certain statutory aviation fees to provide temporary relief.
The Federal Government also introduced capped Jet A1 pricing and a proposed 30-day credit window for airlines.
While these interventions may ease short-term pressure, airlines continue to struggle with elevated operating costs.
But, the interventions by the government is not achieving the desired results.
Group Manager, Marketing and Communications of Ibom Air, Aniekan Essienette, disclosed that fuel costs per flight have jumped from about N2.1 million in January to approximately N7.6 million as of April 27.
“This represents more than a 350 percent increase since early March, in just about seven weeks,”
She  noted that the airline operates one of the most fuel efficient fleets in the domestic market, yet the spike in aviation fuel prices has significantly eroded its cost structure.
Ibom Air said it has been unable to fully adjust ticket fares to reflect the rising costs due to competitive pressures and the need to remain accessible to passengers.
“We chose to absorb the cost increases initially, believing the situation would ease within a short period. However, it has persisted for nearly two months, with no indication of relief,” the airline said.
The company warned that current conditions are unsustainable and may compel it to scale down operations.
“Globally, airlines respond to rising fuel costs by reducing flights. We may have to adopt similar measures, including cutting capacity, to continue operating,” she added.
She cautioned that if the trend continues, airlines may be forced to suspend operations entirely, as revenues would be insufficient to cover fuel expenses alone.
Ibom Air called on fuel marketers to review pricing mechanisms to ensure the viability of the airline industry in Nigeria.
Speaking in an interview yesterday, National President , National Association of Aircraft Pilots and Engineers (NAAPE), Captain Bunmi Gindeh , said the aviation fuel crisis has serious implications for airline. sustainability and safety..
Gindeh said if the situation is not properly managed, the aviation fuel supply crisis has far reaching implications for the sector , the country’s economy and the flying public.
He said , “The persistent disruptions to flight schedules occasioned by the Jet A1 supply shortfall have resulted in significant extensions of crew duty time beyond planned parameters.
“For our members, pilots and engineers alike, this translates directly into elevated fatigue levels, a condition that is universally recognised in aviation as a critical safety hazard. Fatigue impairs cognitive function, slows reaction time, and, most dangerously, erodes situational awareness, a pilot or engineer’s most essential tool in managing the complexities of flight operations.
“The safety of every passenger aboard is therefore placed at measurable risk when crew members are compelled to operate under these conditions.”
He said beyond the  immediate safety concerns, the fuel crisis is inflicting significant financial strain on airline operators.
Gindeh said :”  Grounded or delayed aircraft generate no revenue, yet fixed operational costs persist. This economic pressure invariably filters down to our members in the form of delayed salary payments, wage reductions, and general deterioration of welfare conditions.
“A workforce operating under financial stress is a workforce distracted, and distraction in an aviation environment is, once again, a precursor to compromised safety.
 “NAAPE is alarmed by early indicators that some operators are already restructuring their operations in response to this crisis. The recent announcement by Rano Air of a reduction in operational routes is a clear signal of the economic damage being wrought.
“ Should the situation remain unaddressed, we anticipate further route suspensions, potential cessation of operations by some carriers, and significant job losses across the aviation sector. Given that aviation is a critical driver of economic activity, trade, tourism, and connectivity in Nigeria, the downstream consequences for the national economy would be severe and far-reaching”.
He called  on the Federal Government, the Nigerian Civil Aviation Authority (NCAA), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), fuel suppliers, and all relevant stakeholders to treat the resolution of this Jet A1 supply crisis as a matter of urgent national priority.
A player in the sector who spoke under anonymity, said the Federal Government’s intervention may offer temporary relief but does not address the structural drivers of Jet A1 price volatility.
He  explained that aviation fuel pricing is largely determined by international Platts benchmarks and the naira-dollar exchange rate, meaning global oil trends and currency pressures remain the key cost drivers.
Marketers argued that direct price controls conflict with deregulation principles and are unlikely to be sustainable.
They  called for structural reforms, including tax reliefs, improved access to financing, naira-based domestic fuel transactions, and stronger support for local refining, including sales from the Dangote Refinery in naira to reduce dollar exposure.
They also questioned the feasibility of the proposed 30-day credit window for airlines without stronger risk-sharing mechanisms.
They maintained that without deeper reforms across the aviation fuel supply chain, current interventions will likely provide only short-term relief while price instability persists.
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Passengers Stranded As Delta Airline From Atlanta Route Back Eight Hours After 

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3 days ago

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May 13, 2026

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Delta Air Lines flight DL54 bound to Lagos from its operating hub at the Hartsfield Jackson Atlanta International Airport, made air return after eight hours flight, as the crew announced to the passengers that the decision to go back to Atlanta was due to operational issues.
Airlive.com reported that passengers bound for Nigeria spent nearly a full workday in the sky on Saturday, only to end up exactly where they started and on Monday the airline cancelled its Lagos-Atlanta bound flight without adequate communication to the travellers.
Airllive.com indicated that the flight operated by an Airbus A330-200 (registration N854W) departed Atlanta at 5:42 PM EDT (Eastern Daylight Time) on Saturday, May 9 and according to flight tracking data, the aircraft climbed to a cruising altitude of 33,000 feet and maintained a standard eastbound track for approximately three and a half hours.
However, as the jet approached the midpoint of its oceanic crossing, the crew made the decision to turn the aircraft around and return to base over operational issues.
In a statement, Delta Air Lines confirmed that the flight was diverted back to Atlanta due to an “operational issue.” While the airline did not provide specific details regarding the nature of the malfunction or logistical hurdle, the decision to return to the hub (rather than diverting to an airport in the Azores or Western Europe) suggests the issue was one better handled by the airline’s primary maintenance base.
Upon returning to Atlanta in the early hours of Sunday morning, the airline officially cancelled the flight. The 21-year-old Airbus A330 involved in the incident remained on the ground in Atlanta for inspection.
Meanwhile, the return of Flight DL54 to Atlanta led to the cancelation of the Lagos-Atlanta flight (DLO55) on Monday  and was scheduled to leave Lagos at 11: 45 AM, as at the time of the report.
The passengers as at press time were not updated on when another flight would be scheduled to fly to Atlanta.
Enoch Epelle
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Passenger Plane With 288 On Board Guts Fire After Landing

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3 days ago

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May 13, 2026

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A packed passenger plane caught fire after landing , forcing a mass evacuation of nearly 288 people on board and an airport shutdown.
The Turkish Airlines flight, heading from Istanbul to Kathmandu, was set ablaze after a spark went off in the jet’s landing gear, authorities said.
A spokesperson for Nepal’s civil aviation agency said: “All aboard are safe, the rescue part is over. We are now investigating the accident.”
The airport’s only runway was closed for almost two hours on Monday morning following the terrifying ordeal, but it has since reopened.
Several incoming flights were suspended following the saga as the runway was checked and cleared.
A Turkish Airlines spokesperson said: “Technical inspections of the aircraft have been initiated by our teams.
“Initial ?assessments indicate ?that the smoke was caused by a technical malfunction in a hydraulic ?pipe.”
Images showed the moments after the dramatic ordeal, with huge emergency slides seen deployed underneath the aircraft.
Smoke was also seen billowing from the plane’s right rear tyre as it touched down at Tribhuvan International Airport in the Nepalese capital.
There were 288 passengers and 11 crew members on board – all of whom were evacuated down the inflatable slides.
The plane was doused before it was safely towed to the taxiway.
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