Few weeks ago, Nigeria’s aviation industry came under intense pressure and scrutiny with the International Air Transport Association (IATA) flagging the industry for exceeding global taxes benchmark amid the alarm raised by airline operators and civil society organizations over unbearable aviation fuel cost and regulatory fees.
The IATA classification places Nigeria among African markets where aviation taxes and fees remain significantly higher than global averages, contributing to higher airfares and weaker regional connectivity.
Nigeria’s airline operators and civil rights groups tackled the government and oil marketers over consistent increases in fees, taxes and aviation fuel, warning that the development would threaten the operations of the aviation industry. The federal government responded by approving a 30% relief on statutory fees owed by airlines to aviation agencies.
Despite the intervention, Centre for the Promotion of Private Enterprise (CPPE), a private sector advocacy group, insisted that the danger of high taxes, fees and regulatory levies of as much as 35% on airline revenues, was undermining the sustainability of domestic carriers.
Similarly, the Chairman of Air Peace, Allen Onyema, raised fresh concerns over the survival of Nigerian airlines, warning that more operators could shut down despite the recent Federal Government intervention.
“We want to meet with Mr. President because as I speak to you now, two more airlines want to go down by Monday. It is very urgent that we meet with Mr. President so that he will hear from us. He’s our president and he’s a very listening president. That is not good news if we have airlines folding up again,” he added.
Today, local flights are expensive, international routes are shrinking, and many Nigerians now see air travel as a luxury rather than a normal means of transportation. Yet aviation remains critical for a country like Nigeria, where insecurity, bad roads, and poor rail connections make air transport essential.
Historically, Nigeria’s airline industry has suffered repeated cycles of rise and collapse. Famous carriers like Nigeria Airways disappeared due to corruption, political interference, poor management, and debt. Private airlines such as ADC, Bellview, Chanchangi, and others also struggled. Today, many domestic airlines still operate with very small fleets, making them vulnerable whenever one aircraft develops technical problems.
Compared with countries in Europe, America, and Asia, Nigeria’s aviation structure remains weak. In the United States, airlines benefit from strong credit systems, efficient airports, stable currency, and government-backed infrastructure. Europe has integrated aviation markets under the European Union, making travel easier and more competitive. Countries like the United Arab Emirates, Singapore, and Qatar deliberately invested in aviation as a national economic strategy. Their governments built modern airports, supported national carriers, and turned their countries into global transit hubs.
Dubai is a classic example. The government transformed Emirates into a global brand through long-term planning, modern infrastructure, and supportive policies. Singapore did the same with Singapore Airlines, while Ethiopia successfully built Ethiopian Airlines into Africa’s strongest carrier through discipline, state support, and professional management.
Nigeria, despite having one of Africa’s largest populations and biggest travel markets, has not achieved similar success. Instead of becoming West Africa’s aviation hub, Nigeria still loses huge passenger traffic to Addis Ababa, Dubai, Doha, and even smaller African countries.
For local airlines, the situation became almost unbearable. Airfares increased sharply because operators transferred costs to passengers. A one-hour local flight that once cost moderate fares now consumes a significant part of the average Nigerian worker’s salary.
International airlines also reduced frequencies on some routes because trapped funds and foreign exchange shortages made Nigeria less attractive.
In previous years, global carriers complained that billions of naira earned from ticket sales could not easily be repatriated. Although the government later cleared some of the backlog, confidence remains weak.
Inflation has worsened the crisis. Food prices, electricity costs, airport charges, and workers’ salaries have all increased. Airlines now spend far more to keep aircraft in the air than they did only three years ago. Aviation experts repeatedly warn that the sector is becoming too expensive for both operators and passengers.
Another major problem is aviation fuel, known as Jet A1. Fuel alone can account for almost 40 percent of airline operating costs. The price of Jet A1 has risen dramatically in recent years, reaching record levels. Airlines threatened to suspend operations after fuel prices jumped massively within a short period.
Ironically, this happened despite Nigeria being a major oil-producing country. The coming of the Dangote Refinery was expected to reduce prices and guarantee steady supply. Instead, many airlines complained that prices were still too high because the fuel market remained deregulated and tied to global market forces.
The government later stepped in to cap fuel prices temporarily and provide relief measures to airlines. But many stakeholders believe these interventions only treat symptoms rather than the real disease.
The issue of monopoly and market dominance also continues to generate controversy. A few powerful businessmen dominate aviation fuel supply, airport services, and airline operations. Critics argue that unhealthy competition and personal rivalries among airline owners weaken the industry. Some operators allegedly use political connections to gain advantages over competition. Others accuse regulators of favouritism.
Another serious issue is cash evacuation from the country. Foreign airlines earn billions of naira from Nigerian passengers yearly, but much of the money eventually leaves the economy. Since Nigeria lacks a strong national carrier, the country depends heavily on foreign airlines for international travel. This means jobs, profits, and technical expertise also flow outward.
Still, the Tinubu administration has introduced some reforms. The government has pushed for airport concessions, improved aircraft leasing rules, and encouraged private sector investment. Aviation Minister Festus Keyamo has repeatedly argued that reforms are necessary to modernise the sector.
Reforms without stability may not produce the desired results. Airlines need predictable exchange rates, affordable financing, lower taxes, and reliable infrastructure. Many stakeholders complain about multiple taxation from aviation agencies and state authorities. Others want the government to reduce import duties on aircraft parts and support local maintenance facilities.
Nigeria also urgently needs a modern maintenance, repair, and overhaul centre. Currently, airlines spend millions of dollars taking aircraft abroad for maintenance checks. This increases pressure on foreign exchange and raises operational costs.
Safety must remain a top priority. Financial pressure on airlines should never lead to poor maintenance or overworked staff. Industry unions already warn that rising fuel costs and operational stress may affect safety standards if not handled carefully.
Nigeria’s aviation sector is not beyond repair. But bold and practical reforms are inevitable.
We, at DAILY NEWSCRAFT strongly believe that the solution to the hydra-headed Nigeria’s aviation sector crises lies in policy consistency and long-term planning. Nigeria must build an aviation system that supports both passengers and operators. Stable economic policies, transparent regulations, reduced taxes, stronger infrastructure, and fair competition must remain on the front burner. Government must also encourage local investors while preventing monopolies that distort the mark
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Nigeria’s aviation sector is not beyond repair. But bold and practical reforms are inevitable.