By Itohan Abara-Laserian,
(News Agency of Nigeria (NAN)

 

Nigeria’s aviation industry was characterised in 2025 by milestones as well as operational hurdles, all of which positioned the industry better for global relevance.

 

Nigeria was during the year removed from the Financial Action Task Force grey list after over 10 years. The removal allowed airlines to acquire aircraft through dry lease.

 

In a dry lease aarrangement, the lessor only provides the aircraft to the lessee, who manages and fully controls the operations of the aircraft for the period of the contract.

 

Before 2025, Nigerian airlines depended on wet leases (where an airline – lessee – approaches another airline – lessor – for aircraft, crew, management and insurance for a period of time.

 

Dry lease opportunity by Nigerian airlines followed the country’s ratification of the Cape Town Convention (CTC) in 2024, which made Nigeria to regain international trust.

As at November 2025, the rating of Nigeria’s compliance with the convention improved to 75.5 per cent from 70.5 per cent.

 

Analysts believe that when compliance is full, Nigeria’s aviation industry will be a more attractive market for global investments.

 

For Mr Fortune Idu, the Chairman of Nigerian Aviation (NIGAV) Center, there have been stability and improved local content in the country’s aviation industry following the implementation of the CTC under Mr Festus Keyamo (SAN) as the Minister of Aviation and Aerospace Development.

 

Idu said that Nigeria fared better in 2025 with more airlines coming in, increased passenger traffic, more airports established and less airline mortality rate recorded.

 

“This year, the minister resolved many of the industry’s bottlenecks. It is more like focusing on policy implementation on how to get private airline owners to optimise usage of Nigeria’s airspace.

 

“The focus was to create a better framework for operations and actualising opportunities that will be created by the proposed Single Air Transport Market (SATAM), without halting or harming Nigerian players.

 

“Creating the enabling environment for aircraft acquisition and leasing by private airline owners was achieved this year by the signing or implementation of the Irrevocable Deregistration and Export Requisite Authorisation.

 

“This is part of the Cape Town Convention Protocol, which enables us to go into the era of dry leasing, thereby creating opportunities for our operators to acquire aircraft on dry lease and increase local fleets,” Idu said.

 

According to him, Air Peace Ltd. is enjoying this opportunity, and other airlines are likely to do same.

 

He said that the development would lead to increased international participation in domestic, regional and international routes.

 

He highlighted other milestones as improved airport infrastructure, more state airports, increased fleets and flight destinations, among others.

 

Idu said that the Dangote Refinery was helping to create stability in the country’s aviation industry with availability of affordable aviation fuel.

 

He said that two years ago, the industry was plagued with epileptic supply of aviation fuel leading to uncertainty in the industry.

 

Idu called for urgent implementation of airport master plan for all airports to boost investor confidence, urging governments and the private sector to collaborate.

Idu said that, with the establishment of more airports across the country, governments should consider concession.

 

He, however, urged that, whether state-owned or privately owned, airports must be managed as business concerns.

 

He urged state governments with new airports to partner with airlines to create dedicated routes.

 

He called for acceleration of the ongoing upgrade at the Murtala Mohammed International Airport, Ikeja.

 

“As a premier airport, most international flights come in through there and cannot afford to be down for too long.”

 

Idu expressed satisfaction with airport security in 2025.

 

“When it comes to security, this year has been quite good with the airports.

 

“I think most of the airports have intensified security, having perimeter fences and monitoring the airport environment,” he said.

 

Mr Basil Agboarumi, Chairman, Nigerian Institute of Public Relations, Aviation Hub, said that 2025 showcased the sector’s potential for grandeur and innovation.

 

Agboarumi called for more passenger-centric operations, financial sustainability for operators, and relentless execution of safety and efficiency policies.

 

“By doing so, we will build an aviation industry that is not only celebrated for its milestones but also trusted and valued by every Nigerian traveller.

 

“The year 2025 presented notable achievements tempered by persistent systemic challenges.

 

“A significant milestone was the successful hosting of Nigeria’s first-ever international airshow; it projected Nigeria as an emerging aviation hub, attracted global investors, and showcased indigenous potential.

 

“We witnessed commendable new routes and route expansions on domestic, regional, and international fronts,” he said.

 

The chairman said that the route expansions enhanced connectivity, promoted tourism and facilitated business linkages.

 

“Investments in new ground support equipment, targeted trainings for personnel, and the ascension of Nigerian professionals to international leadership positions underscored commitment to improving operational standards and human capital development,” he added.

 

Agboarumi said that fleet expansion initiatives by some airlines, though nascent, signaled a positive move toward addressing capacity constraints and improving service reliability.

 

On hurdles, he said that passengers continued to grapple with overpriced airfares, frequent flight delays and cancellations as well as protracted baggage claim delays.

 

He said that the issues eroded consumer confidence and satisfaction.

 

Agboarumi also said that the industry was characterised by aircraft shortages and costly lease agreements exacerbated by multiple taxations and foreign exchange volatility.

 

 

“Incidents of bird strikes remained a concern, highlighting needed improvements in airport environment management.

 

Furthermore, the rise in unruly passenger threats called for stronger enforcement of regulations,” he said.

 

Agboarumi said that passenger-oriented policies remained the cornerstone of a thriving aviation sector.

 

He advocated strengthened consumer protection enforcement.

 

“The Nigerian Civil Aviation Authority (NCAA) must enhance the mandatory, transparent and automatic compensation regime for delays, cancellations and denied boarding as per existing regulations. Compliance must be monitored and non-compliant operators sanctioned.

 

“Airports and airlines should adopt and publish a Baggage Service Commitment – a guaranteed standard for baggage delivery times with clear compensation for failures.

 

“A policy dialogue is urgently needed to address the root causes of overpriced fares, including forex access, multiple charges, and infrastructure costs. A framework for fare transparency should be developed.”

 

He urged that policies should go beyond basic assistance to ensure dignity, accessibility and seamless travel experiences for all.

 

Agboarumi said the Federal Government, through the Ministry of Aviation, must lead a decisive inter-agency action to eliminate multiple taxations and streamline charges affecting airlines.

 

He added that focus must shift toward improved terminal efficiency, runway maintenance, and installation of modern baggage handling systems at major hubs to directly address congestion and delays.

 

“In partnership with financial institutions, a dedicated aviation intervention fund with a single-digit interest rate for aircraft acquisition and maintenance is critical for fleet expansion and sustainability.

 

“We must transition from reactive crisis management to structured social dialogue with all unions to anticipate and resolve disputes before they escalate.

 

“A national action plan on wildlife hazard management (bird strikes) and enhanced security protocols to deter unruly passengers are imperative,” he advised.

 

In an effort to support Nigerian airlines, the Federal Government is working to establish a national aircraft leasing company to ease fleet acquisition.

 

The Minister of Aviation and Aerospace Development, Mr Festus Keyamo, gave the assurance recently.

 

The minister said the leasing company would serve as a central body to negotiate with international lessors on behalf of local airlines, while the government would provide support.

 

He expressed optimism that this would help local airlines to have access to more modern and fuel-efficient aircraft to improve operations, safety and competitiveness.

 

At various fora in 2025, Keyamo reiterated the ministry’s commitment to supporting Nigerian airlines through improved regulatory frameworks, bilateral air services agreements and targeted fiscal incentives to ensure sustainability in aviation business.

 

Meanwhile, President Bola Tinubu has assured potential partners and foreign investors that the right time to invest in Nigeria’s aviation industry is now.

 

According to Tinubu, the industry remains under-exploited though most viable in Africa.

 

In his remarks at the Federal Airports Authority of Nigeria (FAAN) National Aviation Conference 2025, Tinubu said that Africa’s 1.7 trillion dollars regional market, driven by the African Continental Free Trade Area, depended heavily on efficient air logistics.

 

The President was represented by the Secretary to the Government of the Federation, Sen. George Akume, at the event.

 

“Nigeria has over 220 million people and is the largest domestic aviation market on the continent with strategic geographic location ideal for trans-African and intercontinental linkages,” he said.

 

According to Tinubu, travel demand is expected to double within a decade while massive demand in cargo, Maintainance Repair and Overhaul (MRO) leasing, charter services, and aviation-linked real estate will be inevitable.

 

“These are not abstract possibilities, they are real market opportunities ready for investors.

 

“Areas with core potential include aviation cargo and agro-export corridors involving dedicated cargo terminals in Lagos, Kano, Port Harcourt and Makurdi; integration with special agro-industrial processing zones; and cold-chain infrastructure for perishables.”

 

The President noted that MRO infrastructure was aimed at reducing aircraft maintenance capital flight, attracting global players to partner with local investors, and development of smart and green airports involving renewable energy integration.”

 

According to Tinubu, these emerging areas align directly with his administration’s economic diversification, growth and job creation goals.

 

Analyst are hopeful that in 2026, Nigeria’s aviation industry will build on the successes it recorded in 2025 to get to a greater height.

 

They urge stakeholders to ensure that Nigeria benefits from the multiple bilateral air services agreements it entered into in 2025 and review any agreements not favourable to Nigeria.

 

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