Expert identifies aviation sector challenges

 Expert identifies aviation sector challenges 

Former Managing Director of the Federal Airports Authority of Nigeria (FAAN), Dr. Richard Aisuebeogun has identified several structural  challenges confronting the growth and development of the aviation industry.

He disclosed while reeling out the industry's performance report. 

He outlined the sector's challenges  to include :  high cost of operations ,  high cost of fuel , multiple taxes,  financing infrastructure gaps ,  slow project execution, limited aircraft availability, workforce and skills retention challenge as well as weak demand due to affordability constraints.

These factors, he said  continue to limit the sector’s growth potential.

Speaking in interview , he said many industry review mechanism , including the  Nigeria Aviation Awards  (NIGAV) , has in the past 15

 years  served as a strategic platform for reflection, evaluation, and forward planning  providing  stakeholders the opportunity to assess sector performance, examine critical developments, and chart a sustainable pathway for growth.

He said the report highlighting developments in the sector has exposed performance trends, identify critical gaps, and propose actionable pathways , which aligns  with the Renewed Hope Agenda of  President Bola Ahmed Tinubu, and the reform-driven leadership of the  administration.

Aisuebeogun said the  inclusion of this industry review as part of the NIGAV Awards underscores the importance of performance measurement and accountability within the aviation ecosystem.

He said :" Aviation is inherently a long-term, capital-intensive industry that requires continuous review, reassessment, and strategic alignment. Without structured evaluation, progress becomes incidental rather than intentional.

"In collaboration with the Nigerian Civil Aviation Authority (NCAA), efforts are underway to institutionalized this review as an annual international reference document—one that will bridge past performance with future planning, while ensuring continuity even during periods of transition.

"We call on all stakeholders to actively support this initiative, as it will strengthen transparency, policy alignment, and evidence-based decision-making across the sector."

He went on :" The year 2025 can best be described as a period of transition and recalibration—marked by policy reforms, infrastructure commitments, and renewed global engagement, alongside persistent structural challenges."

He outlined strides achieved in the sector to include advancements in aircraft leasing frameworks, planned redevelopment of key airport infrastructure, improved intermodal connectivity as well as gradual enhancement in fleet and route capacity

He affirmed :" Despite macroeconomic pressures, including inflation and high operating costs, the sector demonstrated remarkable resilience, with growth in passenger traffic and sustained government investment.

" The  Federal Government will  continue to  intensify reforms aimed at restoring investor confidence and strengthening regulatory certainty. This has brought about enhanced institutional oversight by the NCAA. Improved compliance with international aviation standards as well as progress in resolving trapped airline funds, in addition to strengthening of aircraft leasing frameworks.

"These efforts have repositioned Nigeria as a more credible aviation market within the West and Central African region, though implementation challenges remain."

He said despite many interventions, infrastructure modernisation remains  a central focus.

He said though the government has ramped up efforts at fixing operational and safety infrastructure at major terminals in Lagos, Abuja, Port Harcourt, Kano, and Enugu, which underwent varying levels of upgrades.

He listed the upgrades to include :terminal rehabilitation, runway improvements, safety enhancement as well as preparatory steps toward concession.

Aisuebeogun said :" While these investments are critical for long-term sustainability, execution delays and coordination gaps slowed visible progress.

"However, the industry experienced a 7.5 percent  decline in capacity, largely due to high jet fuel costs,foreign exchange volatility and limited access to affordable financing."

He said the industry in 2025 attained some headwinds as 

domestic airlines demonstrated resilience despite financial constraints, with emerging state-backed airlines—including Gateway Air, Enugu Air, and Pioneer Airlines—signalling renewed interest in regional connectivity.

"However, high airfares continue to limit accessibility and suppress demand. Nigeria remains dominant in the West African market, with Lagos, Abuja, and Kano serving as key hubs," Aisuebeogun said.

The push towards the attainment of  the Single African Air Transport Market (SAATM), he said  is expected to reduce non-physical barriers by bringing about lower airfares, increase flight frequency as well as enhance regional integration

He  said further  :" Lagos recorded 11.8 percent  traffic growth, the fastest in Africa in 2025. Europe remains the largest market, while travel to the U.S. and Dubai declined due to visa constraints.

"The outlook for 2026 is cautiously optimistic. as government pursues enabling  policy and Investment.

Ongoing reforms in aircraft financing, airport concessions , private sector participation are expected to attract increased international investment, particularly in leasing, MRO, and airport infrastructure.

If the  current momentum is sustained, 2026 could deliver measurable progress in airport modernisation, improved fleet availability, expansion of maintenance capabilities and enhanced operational efficiency." 

However, he said  key risks remain, if the government  is unable to work around  foreign exchange instability,  rising taxation as well as high ticket prices, which is  affecting demand. He cautioned that without coordinated policy intervention, these risks may constrain growth.

He said :" The year 2025 marked a defining period of reset for Nigeria’s aviation industry—characterised by reform, ambition, and resilience amid structural challenges.

"Sustainable growth in 2026 will depend on: policy consistency, efficient project execution , cost-reduction strategies and stronger public-private collaboration

"If these elements are effectively aligned, Nigeria is well-positioned to strengthen its role as a leading aviation hub in Africa.

He canvassed for a comprehensive annual aviation review document.

 "  I call on all stakeholders to contribute to this initiative."