Nigeria's aviation sector on the cusp of transformation

Zawya

22-05-2025

NIGERIA'S aviation industry is poised for a major overhaul in 2025, driven by wide-ranging policy reforms, infrastructure enhancements, and increased private sector involvement.
The sector, a critical element in Nigeria's transportation system and economy, has seen significant developments in recent years. With 20 airports, numerous regulated airstrips and heliports, 23 active domestic airlines, 554 licensed pilots, 913 licensed engineers, and 1,700 cabin personnel, the industry is a vital component of the country›s economy.
The Nigerian aviation sector has been bolstered by the country›s improved aviation infrastructural facilities, including state-of-the-art navigational aids, modern weather forecasting equipment, and highly skilled manpower.
The Nigerian Civil Aviation Authority (NCAA) has been instrumental in regulating the industry, ensuring compliance with international standards and recommended practices.
The authority›s efforts, with the backing of the Minister of Aviation and Aerospace Development, Festus Keyamo, have led to Nigeria›s recent removal from the Cape Town Convention aircraft leasing risk list, enabling local airlines to access low-cost, long-term aircraft financing under dry lease agreements.
Several key developments and reforms are expected to drive growth in the aviation sector.
The federal government›s plan to introduce airport concessions in 2025, inviting private sector participation to modernize airport infrastructure and boost operational efficiency, is a significant step in this direction.
This move is expected to attract significant investment, improve airport facilities, and enhance the overall passenger experience.
According to a report by the International Air Transport Association (IATA), airport concessions can lead to a 20-30 per cent increase in passenger traffic and a 15-20 per cent increase in airport revenue.
Aditionally, the soon-to-be-completed Maintenance, Repair, and Overhaul (MRO) facility for Ibom Air in Akwa Ibom State will reduce the need for costly overseas aircraft maintenance and ease foreign exchange pressures on local operators.
The MRO facility is expected to save the industry approximately $100 million annually in maintenance costs.
Efforts to resolve issues surrounding the delayed Nigeria Air project and the broader push for a national carrier are also expected to gain momentum this year.
The NCAA has also enacted crucial changes, including the establishment of a Consumer Protection Directorate aimed at addressing issues like flight delays, sudden fare increases, and cancellations.
This move is expected to provide greater protection for passengers and promote a more customer-centric approach within the industry.
According to a report by the Consumer Protection Directorate, the number of passenger complaints has decreased by 30 per cent since the establishment of the directorate.
Despite these developments, challenges persist in the aviation sector.
Persistent funding limitations have prompted renewed calls for the establishment of a dedicated aviation bank to support the growth of the industry.
Another clog is the erratic supply of Jet A1 fuel, which continues to hinder operations, with stakeholders urging the Ministry of Aviation to work with Dangote Refinery for a reliable fuel supply chain.
This issue has resulted in significant costs for airlines, which are often forced to rely on expensive alternative sources.
Ongoing infrastructure upgrades, including the recent installation of airfield lighting systems at Murtala Muhammed Airport›s Runway 18R, are critical to supporting the growth of the industry.
These upgrades will enable airports to operate safely and efficiently, even in low-visibility conditions, and will help to reduce delays and cancellations.
According to a report by the Federal Airports Authority of Nigeria (FAAN), the installation of airfield lighting systems has reduced the number of flight delays by 25 per cent.
The growth prospects for Nigeria›s aviation sector are promising, driven by the country›s large population and increasing demand for air travel.
With over 80 active Bilateral Air Service Agreements (BASAs) and a strong international travel market, industry experts see significant potential for growth.
Domestic airlines, such as Air Peace, are expanding their footprint across West and Central Africa, while the growth of e-commerce is fueling demand for air cargo services.
According to a report by McKinsey & Company, the aviation industry is expected to contribute approximately 2.5 percent to Nigeria›s GDP by 2025. The report also notes that the industry will support over 200,000 jobs, both directly and indirectly.
As the aviation industry continues to evolve, it is expected to play a critical role in supporting the country›s economic growth and development. With its robust infrastructure, skilled manpower, and growing demand for air travel, Nigeria›s aviation sector is well-positioned for a major transformation this year and beyond.
The sector›s expected growth will not only enhance connectivity within the country but also position Nigeria as a key player in the global aviation industry.
By and large, Nigeria's aviation sector is on the cusp of a significant transformation, driven by policy reforms, infrastructure enhancements, and increased private sector involvement.
While challenges persist, the growth prospects for the industry are promising, and the sector is expected to play a critical role in supporting the country›s economic growth and development.
With the right support and investment, Nigeria›s aviation sector can become a major driver of economic growth, creating jobs, stimulating economic activity, and enhancing the country›s global connectivity.
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