Nigeria's Airlines Face Trouble as Jet Fuel Threatens to Run Dry

Nigeria's aviation sector faces heightened safety and operational concerns, due to jet fuel supply shortages amid already soaring oil prices. The National Association of Aircraft Pilots and Engineers (NAAPE) said the scarcity of jet fuel has triggered challenges like flight delays and route adjustments.

WION

Related story: Nigeria cuts airline debts to ease jet fuel crisis

Nigeria signs Airbus agreement to boost aerospace industry

The Nigerian government has signed a partnership agreement with European aircraft manufacturer Airbus aimed at strengthening the country’s aviation and aerospace sector.

The memorandum of understanding was signed during a visit by Nigeria’s Minister of Aviation and Aerospace Development, Festus Keyamo, to Airbus headquarters in Toulouse.

Officials said the agreement is intended to support the long-term development of Nigeria’s civil aviation industry through investment in infrastructure, technical expertise and workforce training.

Under the partnership, Airbus will work with the Nigerian government on areas including aviation market analysis, pilot and engineer training, maintenance and repair operations, and broader aerospace development initiatives.

Mr Keyamo described the deal as a major step in the country’s efforts to build a stronger aviation ecosystem.

“We are deeply honoured to engage in a long-term partnership with Airbus,” he said. “This agreement aligns with the Federal Government’s commitment to accelerating the development of Nigeria’s aeronautical ecosystem in all its dimensions.”

Gabriel Semelas, president of Airbus for Africa and the Middle East, said Nigeria was central to the future growth of aviation on the continent due to its large population and expanding economy.

He added that the partnership would focus on developing local talent and strengthening infrastructure to support long-term growth in the sector.

The agreement will also explore Nigeria’s potential role in the production of sustainable aviation fuel (SAF), as the global aviation industry seeks to reduce carbon emissions.

According to Airbus forecasts, Africa is expected to require around 1,490 new passenger and cargo aircraft by 2044.

The continent is also projected to need more than 20,000 pilots and maintenance engineers, alongside thousands of additional cabin crew, to support future growth in air travel.

Nigerian officials say the partnership forms part of wider ambitions to position the country as a leading aviation hub in Africa, while creating jobs and expanding technical expertise in the aerospace sector.

The minister was accompanied on the visit by senior representatives from Nigeria’s aviation agencies, including the Nigerian Civil Aviation Authority and the Nigerian Airspace Management Agency.

By Eddie Saunders, ARGS

Related story: Nigeria cuts airline debts to ease jet fuel crisis

Nigeria cuts airline debts to ease jet fuel crisis

Nigeria is stepping in to stabilize its aviation sector as airlines face soaring jet fuel prices that threaten operations. The government has approved a 30 percent debt relief for domestic carriers following warnings of possible flight disruptions or shutdowns. Officials say the intervention aims to ease financial pressure on airlines while preventing wider economic fallout linked to rising transport costs.

CGTN Africa

Related story: Nigeria caps jet fuel prices to avert airline disruptions

Nigeria caps jet fuel prices to avert airline disruptions

Nigeria's government is capping jet fuel prices and allowing airlines to buy supplies on credit, according to a government document seen by Reuters, as it tries to avert flight ​disruptions caused by soaring fuel costs.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) ​said in the document that aviation fuel should sell for 1,760 ⁠naira to 1,988 naira ($1.29 to $1.46) per litre in Lagos and 1,809 naira to ​2,037 naira in Abuja, based on benchmarks from April 17 to April 23.

It warned ​that prices could still rise due to market volatility linked to the U.S.–Iran conflict and higher supplier costs.

The NMDPRA and aviation ministry did not immediately respond to a request for comment.

The decision follows ​emergency talks after airlines warned that jet fuel prices had jumped by more ​than 270%, forcing fare increases and raising the risk of capacity cuts.

President Bola Tinubu last week approved ‌30% relief ⁠on airlines' debts to aviation agencies and ordered fuel marketers, airlines and regulators to agree on a "fair" fuel price within 72 hours to prevent a sector-wide shutdown.

The talks also agreed to grant airlines a 30-day credit window to pay for fuel and ​tasked the aviation ​ministry with mediating debt ⁠disputes between operators and oil marketers, according to the document.

A technical committee convened by the NMDPRA recommended that fuel marketers sell ​directly to airlines within the indicated price range to cut ​costs and ⁠improve supply-chain transparency, the document said.

The committee also urged regulators to engage Dangote Petroleum Refinery and Petrochemicals over recently increased premiums applied to international benchmarks used to price jet ⁠fuel.

Other recommendations ​include validating airside fuel distributors with adequate infrastructure - ​potentially reducing the number of authorised suppliers at airports - and considering jet fuel for Nigeria's naira-for-crude initiative to ​limit airlines' foreign exchange exposure.

By Isaac Anyaogu, Reuters

Jet fuel crisis: a boon for Nigeria's Dangote, but not for local airlines

Nigeria's giant Dangote refinery is benefiting from record margins for producing jet fuel that it is mostly selling abroad, while the domestic airlines it also supplies have threatened ​to stop flying because of the surge in fuel prices.

The refinery, the largest on the continent, was built to turn Africa's biggest oil producing ‌country into a net exporter of refined products, end Nigeria's reliance on fuel imports, and shield its economy from global energy shocks.

It became fully operational at the start of this year and is producing at its maximum capacity of 650,000 barrels per day.

That has improved local fuel availability but domestic fuel prices are still among the highest in Africa as Nigeria's market is fully deregulated, meaning fuel prices are ​not subsidised by the government as they are in most African countries.

The issue is further complicated by the state oil company's long-standing debt repayment agreements that ​mean Dangote has to import most of its crude oil, making it easier to balance its books if it sells abroad.

CLASH WITH ⁠THE NEEDS OF THE AVIATION INDUSTRY

Industry body the Airline Operators of Nigeria said prices, taking logistics and storage costs into account, have climbed to 3,300 naira ($2.44) per litre, ​nearly triple the level in February before the start of the Iran war.

Nigeria's energy regulator said Dangote was selling jet fuel at 1,879 naira ($1.39) per litre, little changed from imported fuel ​prices of about 1,900 naira ($1.41) per litre delivered to Lagos earlier this month.

The Middle Eastern conflict has led to unprecedented energy disruption and the risk of jet fuel shortages is pressing. Airlines around the world have hiked prices, added fuel surcharges and grounded planes.

Nigerian airlines last week threatened to halt all flights, prompting the government on Thursday to approve measures including some relief on debts owed by local airlines ​and ordering talks to try to agree lower prices.

DANGOTE'S MARGINS COULD BE EVEN BETTER?

Dangote, meanwhile, as a new, highly efficient refinery, has been able to take advantage of record margins ​for producing jet fuel from crude.

Its profits could be even higher if it could rely on Nigerian crude and avoid almost all freight costs.

State oil firm, the Nigerian National Petroleum Company Limited’s ‌joint‑venture crude, ⁠however, is tied to oil-backed loans and pre‑export deals.

That means much of Nigeria's roughly 1.5 million barrels per day of production goes to paying debts to international oil majors, banks and traders. The NNPC does not disclose its obligations, but analysts estimate they amount to about 400,000 bpd.

Dangote Group Vice President Davekumar Edwin said Dangote imported most of its crude from the U.S., as well as some from other African producers and Brazil. He did not give precise figures.

He said the bulk of the 24 million litres of jet ​fuel it produces daily was shipped to Europe, ​although he also said the refinery ⁠largely supplied the needs of Nigerian airlines, which the aviation industry estimates at about 2.1 million litres per day.


EUROPEAN BUYERS ARE WILLING TO PAY UP

As European buyers are willing to pay a premium ahead of the peak demand summer travel season, European imports from ​Nigeria have averaged 78,000 to 96,000 barrels per day in April so far, data from Kpler and LSEG showed, the highest ​on record.

Alan Gelder, senior ⁠vice president for refining, chemicals and oil markets at Wood Mackenzie, said European refiners had earned about $15 per barrel.

He estimated Dangote's margins at more than double that as a result of access to Nigerian crude and the plant's scale and sophistication. Edwin did not disclose figures, but the profits from producing jet fuel hit a record on international markets in March.

Dangote, as ⁠a private refinery, ​prices its products in response to global markets, Gelder said, and that building a big refinery "does not ​automatically mean fuel prices fall".

Dangote plans to list shares in the coming months and is expanding the complex to 1.4 million bpd capacity, which could make it the world's largest refinery by the end of the ​decade.

By Macdonald Dzirutwe, Reuters

President Tinubu grants 30% debt relief to airlines, orders fuel price talks

Nigerian President Bola Tinubu has approved a 30% relief on debts owed by local airlines to aviation agencies and ordered talks involving fuel marketers, airlines, and regulators to reach a fair jet fuel price within 72 hours, Aviation Minister Festus Keyamo said on Thursday.

Domestic airlines warned they could no longer continue operations without raising ticket prices after jet fuel prices rose nearly 300%.

Representatives from government, airlines, fuel marketers, and regulators will meet within 48–72 hours to agree on what the minister described as “fair and reasonable” pricing for jet fuel, with any outcome to be made public.

Soaring jet fuel prices have upended the global aviation industry as a consequence of the Iran war, forcing airlines to raise fares, curb growth plans and rethink forecasts.

Reuters

Related story: Nigerian airlines threaten to halt flights over soaring jet fuel prices

Nigerian airlines threaten to halt flights over soaring jet fuel prices

Nigerian airlines will suspend all flight ​operations from April 20, they warned, unless crippling jet fuel prices, which ‌they accused the country's fuel marketers of artificially inflating, are reduced.

The Airline Operators of Nigeria, an industry body grouping around a dozen mainly domestic carriers, wrote to the Major Energies Marketers Association ​of Nigeria on April 14, complaining that jet fuel prices had risen ​by about 270% since late February.

Global oil and fuel prices have surged ⁠since the onset of the Iran war, as the conflict severely hinders shipping through ​the critical Strait of Hormuz.

But in the letter seen by Reuters, AON called the jet ​fuel increase in Africa's most populous nation "astronomical and artificial," saying it far outpaced global crude oil prices.

"Currently, airline revenues are insufficient to cover the cost of fuel alone," it said.
MEMAN did not ​immediately respond to a request for comment.

Soaring jet fuel prices have upended the global aviation industry, ​forcing airlines to raise fares, curb growth plans and rethink forecasts.

AON said that raising ticket prices ‌to ⁠reflect the fuel costs airlines are facing in Nigeria could lead to low passenger numbers, while a shutdown of airline operations would have broader repercussions, hurting banks, costing jobs and worsening insecurity.

Jet fuel typically accounts for 30% to over 40% of African airlines' ​operating costs, compared ​with a global average ⁠of 20% to 25%, according to the African Airlines Association, making them particularly vulnerable to price surges.

Nigeria’s aviation sector consumed about ​2.1 million litres of jet fuel per day last month, ​data from ⁠the country's petroleum products regulator showed.

However, the giant Dangote Petroleum Refinery - Nigeria's sole domestic jet fuel producer - made no deliveries to the domestic market in March, the data showed.

At the ⁠same ​time, data from tanker-tracking firm Kpler showed Nigeria's exports ​of clean petroleum products - gasoline, diesel, kerosene and jet fuel - more than doubling month-on-month in March.
Dangote did ​not immediately respond to a request for comment.

By Isaac Anyaogu, Reuters

Nigerian airline joins global ticketing network, eyes wider reach

United Nigeria Airlines has been admitted into a global airline network that allows passengers to connect across multiple carriers on a single ticket, a move that could significantly expand its reach beyond Nigeria.

The airline announced its admission into the Multilateral Interline Traffic Agreement (MITA) of the International Air Transport Association (IATA) in a statement signed by its spokesperson, Chibuike Uloka, on Thursday.

MITA is a framework used by airlines worldwide to collaborate on ticketing and passenger connections, enabling travellers to move seamlessly across different airlines without needing separate bookings.

For a carrier that has largely focused on domestic routes, the development signals a shift towards deeper participation in international travel networks.

“This is more than just a regulatory approval; it is a gateway to the world for United Nigeria Airlines,” the airline said.

It added that the framework would allow it to enter partnerships with other IATA-member airlines, making it easier for passengers to access global destinations through connecting flights.

“Admission into the MITA network validates our operational standards and aligns us with global best practices in aviation,” the airline added, noting that passengers would benefit from “seamless, single-ticket itineraries, unified baggage check-ins, and smoother connections.”

An aviation analyst, Nura Ahmad, said the development reflects a strategic approach to growth, particularly in a challenging operating environment.

“For an airline like United Nigeria, this is a smart way to grow without overextending itself. You may not see them flying to London or Dubai immediately, but this kind of arrangement means their passengers can get there more easily through partnerships,” he said.

He added that beyond convenience, the move also strengthens the airline’s credibility within the global aviation space.

“Being part of that system shows they’ve met certain standards. It builds confidence, not just for passengers, but for potential partners as well,” he noted.

The airline highlighted that the arrangement would enable it to collaborate more easily with other carriers within the IATA network, potentially improving connectivity for its passengers.

By Mariya Shuaibu Suleiman, Premium Times

Ex-Nigeria Airways staff demand $26mn severance payout

Former employees of defunct Nigeria Airways (Lagos) are urging the federal government to release NGN36 billion (USD26 million) in severance benefits approved by President Bola Ahmed Tinubu last year, reports Nigeria's Daily Trust newspaper.

The payments, approved in June 2025, were meant to resolve a decades-long struggle for compensation following the airline's liquidation in 2004. However, nine months after the presidential directive, the funds have yet to be disbursed, according to workers’ representatives.

In a March 29 statement, spokesperson Sheri Kyari, also a former assistant manager at Nigerian Airways, said the finance ministry had not yet authorised the release of the money. The group appealed to the current finance minister, Wale Edun, and other officials to act immediately.

"Across Nigeria, elderly former workers are dying in penury, unable to afford food, shelter, medication, and other basic necessities of life," Kyari said, adding that some retirees had died without receiving their entitlements.

The former employees' struggle for severance pay has spanned multiple administrations. Former president Muhammadu Buhari approved partial payments after years of protests, but a balance remained outstanding until Tinubu’s approval last year.

Nigeria Airways ceased operations in 2003 and was formally liquidated in 2004 by the federal government.

By Hilka Birns, ch-aviation

Nigeria to recover $13.6mn from international airlines

Nigeria’s House of Representatives has given the Federal Airports Authority of Nigeria (FAAN) two weeks to recover more than NGN18.98 billion naira (USD13.6 million) that foreign airlines owe to the government, according to multiple news reports.

The ultimatum was issued by the House Committee on Finance during a revenue monitoring session covering the 2023-2025 fiscal years, aimed at strengthening accountability among government agencies, as reported by newspapers such as Leadership, Vanguard, Daily Trust, and Punch.

They reported that the committee chairman, James Abiodun Faleke, had expressed concern that several international carriers had allegedly accumulated large debts for airport services despite a two-week payment deadline.

FAAN CEO Olubunmi Oluwaseun Kuku told lawmakers that the outstanding debt reflects service charges processed through the IATA Clearing House settlement platform and includes both current and overdue balances.

According to Kuku, airlines with significant outstanding payments include Qatar Airways and Lufthansa, each owing about NGN1.5 billion (USD1.1 million) and Virgin Atlantic with about NGN1.35 billion (USD970,000). KLM Royal Dutch Airlines, EgyptAir, and Ethiopian Airlines allegedly each owe more than NGN1 billion (USD718,000) in various charges.

Other airlines listed among the debtors include British Airways, Air France, Royal Air Maroc, Turkish Airlines, and Africa World Airlines, with debts ranging from NGN700 million (USD502,000) to NGN1 billion.

ch-aviation has reached out to IATA and each of the airlines for comment. The latest IATA ICH membership list includes all the above carriers, while only two from Nigeria, Air Peace and Overland Airways, are included.

A Virgin Atlantic spokesperson said: "We’re working closely with our partners at FAAN to ensure any outstanding payments are resolved in line with agreed processes."

Two-week window

According to the reports, the Nigerian lawmakers questioned why airlines were allowed to exceed the two-week payment window, with some debts reportedly exceeding 30 days, 90 days, or more than a year. They also asked whether penalties or interest were imposed on overdue payments and why airlines with longstanding debts are still allowed to operate in Nigeria.

Kuku said that international airline payments are processed through the global clearing system managed by IATA, which can sometimes delay settlements. She added that FAAN monitors outstanding balances and increases engagement with airlines once debts exceed 30 days, with stricter measures after 90 days.

She also claimed that FAAN had grounded some airlines that failed to meet payment obligations, particularly domestic carriers that do not operate under the same global credit arrangements.

Despite the explanation, the airport authority was told to recover the debts within two weeks and submit documentation on all debtor airlines. The committee warned that airlines could be summoned to appear before the House if the debts remain unpaid. "We need every kobo that belongs to this country," Faleke said.

Cleared funds

The situation reverses the conundrum international airlines serving Nigeria faced in recent years when the country topped the list of states worldwide blocking the repatriation of airline revenues in US dollars. At its peak in June 2023, Nigeria's blocked funds amounted to USD850 million, resulting in some airlines reducing their operations. However, in 2024, IATA reported that the blocked funds had been returned through constructive engagement and phased repatriation.

By Hilka Birns, ch-aviation

Video - Nigerian aviation industry reels from US travel ban

US travel restrictions are full effect for 26 African countries, including 12 full bans and 14 partial bans, with Nigeria, Africa’s most populous nation, among those affected. These restrictions come at a time when Africa’s aviation sector was seeing new growth. In Nigeria, however, industry operators report a decline in passenger traffic on Nigeria-US routes, as the country had already been subject to strict visa regulations.

CGTN Africa

Video - Nigeria's first airshow aims for regional aviation leadership

Nigeria’s inaugural international airshow showcased the country’s ambitions to lead in regional aviation. Organizers aim to establish Lagos and Abuja as major aviation hubs for West and Central Africa.

CGTN Africa

Emirates to resume Nigeria flights after nearly two years

Dubai's Emirates airline will resume flight schedules to Nigeria from Oct. 1, it said on Thursday, ending a close to two-year halt to flights.

The United Arab Emirates (UAE) stopped issuing visas to Nigerians in 2022 after Emirates suspended flights between the nations because of an inability to repatriate funds from Nigeria.

"We are excited to resume our services to Nigeria. We thank the Nigerian government for their partnership and support in re-establishing this route and we look forward to welcoming passengers back on board,"

 Adnan Kazim, the airline's deputy president and chief commercial officer, said in a statement.

The Lagos-Dubai service has been popular with Nigerian customers in the past and Emirates said it hopes to reconnect travellers to Dubai and onwards to more than 140 destination with its resumption of services.

Nigerian President Bola Ahmed Tinubu and UAE President Mohamed bin Zayed Al Nahyan met last September in Abu Dhabi and discussed the lifting of the visa ban and new investments into Africa's most populous country.

The resumption of schedules also includes cargo flights, the statement said.

By Ope Adetayo, Reuters

Nigeria’s Air Peace Launches Heathrow Flights

Nigeria’s aviation and aerospace development minister Festus Keyamo vowed that his country is undergoing a transformation and is intent on growing connections between the West African economic powerhouse and the world.

Keyamo spoke after he arrived on the inaugural Air Peace Boeing 777-200ER flight from Nigeria’s capital Abuja to London Heathrow on Oct. 26.

“This is an historic moment,” he said. “International airlines have been coming to Nigeria for nearly 90 years on some routes, lifting passengers back and forth without our operators fully participating. Under our BASAs [Bilateral Aviation Safety Agreements] we had rights too, but no capacity, no access, no slot at Heathrow. Today, that changed.”

In Africa, Nigeria is a dominant economic force, competing with South Africa and Egypt for the top spot on the continent. It has Africa’s largest population, which provides a massive domestic market and a large labor force. It has had no national carrier for two decades, and there has been much speculation, argument and legal action over attempts to launch one.

Meanwhile, privately owned airlines have been growing successfully in Nigeria. Air Peace has expanded under the leadership of Chairman and CEO Allan Onyema, who has demanded that Nigerian airlines should have the same rights and access as foreign ones.

When he won the license to fly from Lagos to London Gatwick last year it was seen as a milestone, but for Onyema it was just a small step, and he pushed for access to Heathrow.

Onyema found an ally in minister Keyamo, who opened diplomatic channels with the British government and other countries to gain access. But he also turned internally to Nigeria’s fractured airline industry and a beleaguered regulator to cooperatively push to meet and exceed global standards.

“It has been a dogged leadership by [Keyamo] to get support for local airlines to meet the highest standards. We have worked with the UK CAA to make an impact, and now the regulator support to oversight is robust,” said Chris Ona Najomo, the director general of the Nigeria Civil Aviation Authority (NCAA).

Najomo said Nigeria has embarked on comprehensive infrastructure upgrades, including the modernization of airport terminals, expansion of cargo and logistics networks, and integration of innovative technologies to enhance safety and operational efficiency. Moves, Najomo said, that would support the industry.

Keyamo argues that the new links between London and Nigeria are just the start. “We need that connectivity. We are proud of our flag carriers,” he said. “We will hold them to the highest of standards and will help them open routes.”

Speaking on the sidelines of the Heathrow event, the minister told Aviation Week that he and the NCAA had met privately with lessors and financiers to share their progress. “We have signed and implemented the Cape Town Convention,” he said. “We have guaranteed that we will ensure assets are returned within days.”

With greater confidence in the government guarantees and an improvement in safety and operational regulation, Keyamo believes there will be a boost for Nigerian carriers.

Does this put an end to the talk of a government-owned national flag carrier?

“It is still talked about,” Keyamo said, “but every good economy thrives on the wealth and wellbeing of the private sector, the greatest employer of labor and engine of growth. We have done all we can within our powers to give our local operators the muscle and leverage for fair competition.”

“The mortality rate in our aviation sector for more than 40 years has been very high. Over 100 airlines have come and gone. We have had a clear mandate from President Bola Ahmed Tinubu to ensure that we support the growth, sustenance, and competitiveness of our local operators,” the minister said.

Now with 30 aircraft, Air Peace is West Africa’s largest carrier. As well as London routes, the airline also flies to Istanbul and Jeddah. Toyin Olajide, the carrier’s chief operating officer, emphasized the airline’s connectivity to the major West African capitals in Cameroon, Cote D’Ivoire, Ghana and Senegal.

By Alan Peaford, Aviation Week

Air Peace pilots tested positive for alcohol, cannabis after the Port Harcourt runway incident

Nigerian accident investigators said two Air Peace pilots tested positive for alcohol and cannabis after a runway excursion involving one of the airline’s jets in Port Harcourt in July.

In a preliminary report released Friday, the Nigerian Safety Investigation Bureau (NSIB) said toxicology tests confirmed the presence of intoxicants in the captain and first officer who flew the Boeing 737 with 103 people on board.

A cabin crew member also tested positive for cannabis.

The aircraft, on a domestic flight from Lagos, landed long on Runway 21 at Port Harcourt International Airport after what investigators described as an unstabilised final approach.

The plane touched down 2,264 metres from the runway threshold and came to a halt more than 200 metres into the overrun area.

“All passengers and crew disembarked safely, and no injuries were reported,” the bureau said.

The NSIB noted, “Initial toxicological tests conducted on the flight crew revealed positive results for certain substances, including indicators of alcohol consumption. A cabin crew member also tested positive for THC, the psychoactive component in cannabis. These results are being reviewed under the human performance and safety management components of the investigation.”

It added that “Toxicological screening conducted post-incident revealed that Captain and first officer tested positive for Ethyl Glucuronide, indicating recent alcohol consumption.”

Runway excursions are one of the most frequent safety risks in commercial aviation, often caused by poor visibility, pilot error or technical faults.

The NSIB said the toxicology results suggested human performance was a critical factor in this case.

Following the findings, the agency recommended that Air Peace strengthen its crew resource management training and tighten checks on pilot fitness before dispatch.

Air Peace, Nigeria’s largest airline, operates domestic and international flights across Africa and to destinations such as London, Saudi Arabia, Dakar, Freetown, Monrovia and Ghana.

The company has yet to comment on the bureau’s report.

The International Civil Aviation Organisation (ICAO) considers intoxication by flight crew a serious breach of global safety standards.

Several airlines worldwide have faced scandals in recent years after pilots were caught under the influence, underscoring the risks to passenger safety.

The NSIB said its investigation is still ongoing.

Premium Times

Video - Nigeria shelves national carrier plan

Nigeria has shelved its plan to fund the establishment of a national carrier, instead focusing on building capacity for existing local airlines. According to the Ministry of Aviation and Aerospace Development, the government plans to bolster the aviation sector’s competitiveness and sustainability through private airline support.

CGTN

Calls for Nigeria to reconsider tax on free trade zones

The Nigerian government should reconsider its decision to impose taxes on companies operating in free trade zones (FTZs) as this may result in the country losing its private jet maintenance hub operated by ExecuJet Nigeria at Lagos, which currently attracts aircraft from across Africa for cost-effective maintenance due to tax exemptions.

This is the call from Sam Iwuajoku, the administrator of the Quits Aviation Services Free Trade Zone, which hosts ExecuJet Aviation Nigeria FZE at Lagos International Airport. He told the newspapers Business Day and This Day Live that the facility handles maintenance, repair, and overhaul (MRO) services, trains local staff with expatriate expertise, and supports more than 1,000 jobs.

He warned that the tax reform would threaten these jobs, hinder technology transfer, and result in higher maintenance costs for Nigerian-owned aircraft as owners would have to take their aircraft to maintenance hubs overseas.

The Nigeria Export Processing Zones Authority (NEPZA) currently offers tax exemptions and other benefits to free-zone enterprises, including reduced foreign exchange risks.

ch-aviation has reached out to ExecuJet Nigeria for comment.

According to company information, it is part of ExecuJet Aviation Group, with Quits Group being the Nigerian partner. It is set up as an MRO and fixed-base operator (FBO) at Lagos with a 22,835 square metre concrete apron and a 4,074 square metre hangar. It serves the needs of the business jet market in Nigeria and visiting aircraft. Line and scheduled maintenance services are provided for Bombardier Business Aircraft, Dassault Falcon Jet, Embraer, Hawker Beechcraft, and other aircraft. The company is approved by the Nigerian Civil Aviation Authority, the South African CAA, the Bermudan CAA, and the Cayman CAA. EASA certification is in progress.

By Hilka Birns, ch-aviation

Nigeria removed from global aviation leasing blacklist

This announcement was made by the Chief Operating Officer of United Nigeria Airlines, Osita Okonkwo, who noted that the West African country now has more access to leasing aircraft, following its removal from the global aviation leasing market's blacklist.

“The important thing is that Nigeria is no longer on the blacklist. Nigeria was blacklisted before, but that is sorted,” he stated.

The CEO also disclosed that while Nigeria's blacklisting concerns have been handled, individual airline operators must now deal directly with lessors to get aircraft.

“So, individual operators, we now have to discuss flying the aircraft, discuss with lessors, meet their conditions, and then sign on the dotted lines,” Osita Okonkwo, revealed.

In previous years, Nigeria was regarded as a risky market, which made it challenging for airlines to lease aircraft, according to Okonkwo.

Fortunately, operators now have stronger prospects due to the increased rating, as reported by the Punch newspaper.

“It all depends on the risks. Before, Nigeria was rated very high risk, and almost no business was done with Nigeria, but now the high risk is gone. We hope the price is competitive,’ he said.

“On dry leasing, the process of getting an airplane purchased is not your regular process of ‘I want to buy a car, and I’m paying, and I’m taking it home.’. There are so many processes, so many documentary things that will be involved,” Tunde Moshood, the Ministry of Aviation and Aerospace Development's Special Adviser on Media and Communications, stated.

“So, the Boeing lessors forum that we attended has exposed Nigeria to the Western world; they appreciated the fact that Nigeria is back and it is promising and that we are fulfilled in all righteousness. Like our IDERA, like the Cape Town Convention, all of these are what has endeared us to the lessors,” he added.

By Chinedu Okafor, Business Insider Africa

Nigeria aims to become aviation hub of Africa

Nigeria’s full ratification last year of the Cape Town convention will help the nation reach its goal of becoming the “aviation hub of Africa”, according to its aviation minister.

Speaking at the Airline Economics Growth Frontiers conference in Dublin on 13 January, Festus Keyamo said the convention’s legal safeguards will lower risks for lessors leasing aircraft to local airlines.

“Those who bring their equipment to Nigeria are safe, because we are compliant with the Cape Town convention,” says Keyamo, who is also responsible for aerospace development. “I can give my personal guarantee on that. We are here to let the world know that we are open for business.”

Nigeria – Africa’s biggest country by population and its fourth largest economy, with a rapidly expanding middle class – has long struggled with attempts to establish an international flag-carrier, or even a strong home-grown airline sector. Many lessors have been deterred from financing aircraft because of concerns that the Nigerian legal system has not been robust enough to allow them to recover their assets.

However, Keyamo says there are 23 private airlines in Nigeria, and several of these have the potential to become a future national carrier. “Our role is to empower these local operators to grow,” he says. “We have a free-market economy that allows all private operators to come in. There is no reason now why some of these local operators cannot grow.”

Nigeria’s position on the map – equidistant from north, southern, and east Africa – and the fact that Lagos-London is one of the busiest routes in Africa mean it is well placed to become a crossroads for air travel within the continent, he says. And as well as Lagos, Keyamo is keen to encourage the development of other airports. “We will be inviting the biggest players in the world to manage our airports with the aim of making them transit hubs,” he says.

As part of its efforts to put Nigeria more firmly on the international map, the government is hosting a three-day industry convention in December called the Nigeria International Airshow at a Lagos airport hotel.

“The aviation sector is making a key contribution to [Nigerian president Bola Ahmed Tinubu’s] ambition to create a trillion-dollar economy,” says Keyamo. “We are seeing a lot of transition into the middle class and the aviation sector must be ready. Nigeria is on a transformational journey.”

In August last year, the government and Boeing signed a memorandum of understanding aimed at making it easier for the country’s airlines to acquire new-generation aircraft from the manufacturer and its network of lessors and financiers, as well as access training and maintenance services.

By Murdo Morrison, Flight Global

Nigeria set to investigate collapse of over 100 airlines in 40 years

Nigeria's Vice President, Kashim Shettima, has lamented the decline of the nation's aviation sector, citing the loss of over 100 aircraft in 40 years.

This disclosure was made during the Ministry of Aviation and Aerospace Development’s Conference on the Implementation of the Cape Town Convention and Aircraft Protocol, held in Abuja.

Representing Vice President Kashim Shettima, the Minister of Aviation and Aerospace Development, Festus Keyamo, expressed concern over the situation and affirmed the government’s commitment to preventing future occurrences, according to The Punch.

“More than 100 airlines have gone in the last 40 years and I know you all remember from Concord to Zenith to Bellview, among others. You will then ask yourself why they die off. I can keep mentioning them because I have their list with me,” Keyamo stated.

Nigerian Airlines' Decline

This in-depth report by The Punch reveals that a document from the Federal Airports Authority of Nigeria as of 2017, indicated that approximately 160 airlines and private aircraft operators became defunct since the liberalization of the aviation sector in the late 1980s.

From the now-defunct national carrier, Nigerian Airways, to airlines such as ADC Airline, Afrijet Airline, Air Meridian, Albarka Air, Barnax Airline, Bellview Airline, and Chanchangi Airline, among many others, the narrative remains consistent.

Aviation stakeholders have repeatedly questioned the factors that led to the demise of these airlines.

“It behoves us now in office to find out why they went under and how we can ensure that it does not happen again. The only way we can do that is through policies and frameworks to ensure that they survive. We can’t keep giving them money. We must make the business conducive for them to survive.” Keyamo said.


The core challenges

In an interview with The Punch, Ahmed Kuru, the former Managing Director of the Asset Management Corporation of Nigeria (AMCON), highlighted that the aviation sector's challenges are predominantly structural.

He pointed to factors such as insufficient aviation infrastructure, exorbitant aviation charges, and the escalating cost of aviation fuel.

Kuru highlighted the issue of poor corporate governance, which has contributed to the downfall of numerous businesses in the industry.

He noted that inadequate governance practices in the past enabled principal owners to misappropriate company funds, sometimes even withdrawing cash manually.

However, Kuru observed that technological advancements, such as online booking systems, have helped curb these unethical practices. 

By Solomon Ekanem, Business Insider Africa

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