By Basil Agboarumi
Nigeria’s aviation sector is a boiling pot. The heat is rising from every direction – multiple taxation, infrastructure decay, unpaid services, union agitation, policy inconsistency, reputational crises, and an operating environment that punishes even the most disciplined operator.
For over three decades, I have watched this industry from the inside. I have seen airlines rise with promise and fall with ignominy. I have seen professionals who should know better communicate carelessly, and I have seen CEOs who treat Public Relations as a cosmetic afterthought rather than a strategic function.
This is not a lamentation. It is a diagnosis. And a diagnosis without a prescription is mere complaint. The pages that follow offer both.
The recent turbulence in Nigerian aviation is not an aberration. It is the logical outcome of systemic failures that have been left unaddressed for too long. As a Fellow of the Nigerian Institute of Public Relations (NIPR) and a practitioner who has spent a career at the intersection of aviation operations and reputation management, I submit that the way forward lies in confronting uncomfortable truths with data, not sentiment; with strategy, not noise.
THE MORTALITY QUESTION: WHY NIGERIAN AIRLINES DIE YOUNG
Over the last four decades, more than 100 Nigerian airlines have gone under. Between the year 2000 and 2020, the average lifespan of a Nigerian airline was calculated at just five years. In the last 25 years alone, over 30 airlines have closed shop, with the likes of ADC Airlines, Afrijet, Albarka Air, Bellview, Chanchangi, Sosoliso, and Virgin Nigeria joining the graveyard.
Nigeria has produced over 100 airlines in four decades, and their average operational lifespan is between five and ten years. Some, like Aero Contractors (founded 1959), have defied the odds, but they are exceptions that prove the rule
The reasons are not mysterious. Fuel costs are believed to account for 35 – 40% of airline revenue in Nigeria. A Lagos – Abuja return flight requires about 8,000 litres of fuel, costing approximately eight million naira before a single salary or maintenance bill is paid. Add to this the exchange rate trap: Jet A-1 and aircraft leases are dollar-denominated, while airlines earn in naira. When the naira slides, costs balloon and revenue dwindles.
Then there is the C-check problem. Every 18 months, each aircraft requires a maintenance check costing between $1 million and $3 million. With no heavy maintenance facilities in Nigeria, aircraft must be ferried abroad, draining foreign exchange and grounding capacity for weeks.
But the most damning indictment is self-inflicted: lack of corporate governance and financial transparency. As Alexander Nwuba, former Managing Director of Associated Airlines, put it: “When you fabricate books and raise money, you’ll also fabricate the business. Financial transparency is key to business success.”
SAFETY: THE PARADOX OF EXCELLENCE AND PERCEPTION
Is Nigerian aviation safe? The data says yes. Nigeria has recorded only two fatal accidents in the past 10 years, giving it the best aviation safety record in Africa. Nigeria first earned US FAA Category One status in August 2010, retained it in 2014 and 2017, and has undergone ICAO audits with no Significant Safety Concerns (SSC) or Significant Security Concerns (SSeC).
However, in September 2022, the FAA implemented a policy revision that de-listed countries that had not provided indigenous airline services to the US or carried a US operator’s code within a two-year period. Nigeria was de-listed – not because of safety deficiencies, but because no Nigerian carrier was flying to the US.
Nigeria’s safety oversight is compliant with international standards. The de-listing is a commercial and diplomatic issue, not a safety verdict. The lesson for Public Relations practitioners is profound: technical compliance without commercial activity creates a reputational vacuum that adversaries fill with speculation. Safety data must be communicated proactively, not defensively.
UNIONISM: RIGHTS, RESPONSIBILITIES, AND THE GLOBAL CONTEXT
The Nigerian Civil Aviation Act 2023 contains clauses that aviation unions have described as anti-labour, including restrictions on the right to strike and picket. The National Union of Air Transport Employees (NUATE) has accused some airlines of making employment conditional uponnot joining a trade union, which is a violation ofNigerian labour law.
What is the global norm? In mature aviation markets, unionism is institutionalised and regulated. The International Labour Organisation (ILO) protects the right to freedom of associationin the US, the Railway Labor Act governs airline labour relations, requiring mediation before strikes. In Europe, union participation in airline governance is common.
Collective bargaining protects worker welfare, ensures safety standards are maintained, and provides a structured channel for grievance resolution. Unregulated strike action can cripple operations. When unions become politicised, they can hold the industry hostage.
The 2023 Act’s attempt to prohibit strikes in aviation contradicts the Trade Unions Act 2004, which grants the Minister of Labour sole regulatory powers over trade unions. The way forward is not to suppress unionism but to professionalise it. Unions should be partners in safety oversight and industry advocacy, not adversaries to be neutralised.
TAXES AND CHARGES: THE TRUE PICTURE
The airline operators have consistently complained of multiple taxation. The most contentious is the 5% Ticket Sales Charge (TSC) imposed by the NCAA. Air Peace Chairman Allen Onyema has described it as fiscally constricting, arguing that a fixed flat rate per ticket would be more sustainable.
The 5% TSC was introduced over 45 years ago under the Gowon administration. The question of whether the defunct Nigerian Airways paid this charge is instructive: it did not, because the charge was introduced specifically to fund the regulator after the national carrier’s decline.
Beyond the TSC, airlines face charges from NAMA (navigation), FAAN (landing and parking), NiMet (weather), and various state government levies. In 2026, the NCAA projected N1.129 trillion from TSC and Cargo Sales Charge alone.
ICAO’s Document 8632 urges member states to eliminate taxes on international air transport and ensure that levies generated from aviation are reinvested in the sector. In Singapore, aviation revenue is ring-fenced for infrastructure and safety upgrades.
We recommend that Nigeria should move from percentage-based charges to fixed, transparent fees; automate remittance to eliminate leakages; and ring-fence a defined percentage of aviation revenue for infrastructure renewal.
AIRPORT SECURITY: PERCEPTION VS. REALITY
The security situation at Nigerian airports is a matter of legitimate concern. Key vulnerabilities include insider threats and collusion with criminal networks, weak access controls, outdated screening technologies, and insufficient behavioural detection capacity. Defective passenger profiling, obsolete surveillance technology, and porous perimeter fencing have been identified as major impediments.
However, Nigeria has made strides: e-gates linked to Interpol and other security agencies have been installed at five international airports. The deployment of advanced passenger screening systems is underway.
Passenger behaviour is another dimension. Globally, airlines and authorities manage disruptive passengers through a combination of legal sanctions, no-fly lists, and behavioural risk monitoring. Nigeria needs traveller education campaigns and a data-driven behavioural risk framework.
On flight cancellation and rescheduling: Global best practice mandates clear, timely communication, automatic rebooking or refunds, and compensation where applicable. Nigerian carriers often fail on communication, which is a Public Relations failure as much as an operational one.
INFRASTRUCTURE: THE RAMP CONGESTION CRISIS
Murtala Muhammed International Airport (MMIA), Lagos, was built over 40 years ago and has seen no major structural expansion despite exponential growth. In 1979, the airport handled about eight international flights; today it handles about 272 aircraft movements daily and about 32 international airlines.
The NCAA’s reduction of AOC acquisition time has accelerated airline licensing without commensurate infrastructure expansion. Professor Obiora Okonkwo of United Nigeria Airlines has recently warned that airport infrastructure may not cope with new operators.
The way out could be:
Slot management: Introduce a slot system for Lagos and Abuja, as recommended by Captain John Ojikutu.
AI-powered ramp management: Optimise aircraft parking, predict conflicts, and reduce blockages.
Sunset airport upgrades: Extend operating hours at select airports to spread traffic.
Unserviceable aircraft removal: Enforce ICAO Annex 14 guidelines requiring removal of unserviceable aircraft from critical aerodrome areas.
ECONOMIC CONTRIBUTION AND GOVERNMENT SUPPORT
Aviation contributes between $1.7 billion and $2.5 billion annually to Nigeria’s GDP, supporting over 216,000 jobs. Air transport accounts for approximately 2.5% of GDP, with Lagos, Abuja, and Port Harcourt representing over 70% of sector contribution.
Yet Nigeria has just 31 airports, 92 airstrips, and 131 heliports. Only three airports handle 92% of all traffic, and only two are profitable. IATA requires at least five million passengers yearly for an airport to be viable; most Nigerian airports fall far short.
Singapore Changi Airport accommodates over 68 million passengers annually, connects more than 100 airlines to 400 cities, and contributes approximately 5% to Singapore’s GDP. Singapore Airlines is government-linked but commercially run, demonstrating that state ownership and operational excellence are not mutually exclusive.
Nigeria should adopt a hub-and-spoke model, ring-fence aviation revenue, and pursue strategic partnerships with global airport operators. The ongoing concession of Enugu Airport to Aero Alliance Limited under a PPP arrangement is a step in the right direction.
PROFITABILITY, TRANSPARENCY, AND THE “ONE MILLION” QUESTION
An airline CEO famously said it is difficult for an airline to make a profit of one million. Whether naira or dollars, the sentiment captures the razor-thin margins of Nigerian aviation. Fuel costs consume 35 – 40% of revenue; C-checks cost millions; and exchange rate volatility erodes whatever remains.
Most Nigerian airlines do not open their books. Ibom Air is a notable exception. At its first public Annual General Meeting in 2025, Ibom Air reported revenue of N96 billion in 2024 (up 43% from N67 billion in 2023), an operational profit of N16.6 billion (reversing a N3 billion loss), and a net profit of N6.8 billion. This is proof that profitability is possible – but only with transparency, fiscal discipline, and strategic planning.
Why don’t airlines open their books? Fear of scrutiny, poor corporate governance, and a culture of opacity. This must change. Transparency attracts investment, builds public trust, and disciplines management.
THE NCAA 5% TSC: SHARING FORMULA AND UTILISATION
The NCAA collects 5% of ticket sales, but this is not retained entirely by the regulator. The current sharing formula is a subject of intense lobbying. NAMA is seeking 56% (up from 22%), NCAA wants 65% restored, and the African Aviation and Aerospace University (AAAU) is requesting 10%.
How is it utilised? The TSC funds regulatory oversight, air navigation infrastructure, meteorological services, accident investigation, and aviation training. However, transparency in remittance and utilisation remains a challenge. The proposed amendments to the Civil Aviation Act seek to automate remittance and improve accountability.
JET A1: THE FUEL CRISIS
Between February 28 and April 2026, the price of Jet A1 surged from N900 to N3,300 per litre – an increase of over 300%. Airline Operators of Nigeria accused marketers of manipulation, noting that the increase did not correlate with global crude oil prices, which rose by only about 30%.
For an oil-producing country, this is a paradox. Nigeria refines almost none of its own jet fuel, relying on imports that are dollar-denominated. The cost of fuelling a single domestic flight skyrocketed from N2.1 million in January 2026 to about N7.6 million by April.
The implications are, airlines are being decimated. One operator grounded its entire fleet in March 2026. Without intervention, the mortality rate will accelerate.
TSA AND AVIATION: A POLICY MISMATCH
The Treasury Single Account (TSA) requires aviation agencies to remit a percentage of their internally generated revenue to the Federation Account. Under President Buhari, deductions started at 25%, rose to 40%, and were increased to 50% under President Tinubu. The rate has recently been reduced to 30%.
The ICAO Document 8632 urges member states to ensure that levies generated from aviation are directed back into the industry. The TSA, as currently applied, contradicts this principle. Aviation is a safety-critical industry; its revenues should fund safety infrastructure, not general government expenditure.
Hence, the government should remove aviation parastatals from the TSA. Establish a dedicated Aviation Development Fund with transparent governance.
MINIMUM AIRCRAFT REQUIREMENT: NCAA VS. ICAO
The NCAA requires start-up airlines to have a minimum of six aircraft, with at least four airworthy at all times. This is a Nigerian innovation. ICAO regulations do not place any minimum aircraft requirement for airline start-up.
The NCAA rationale is to prevent the proliferation of fragile airlines that collapse at the first aircraft downtime. The counterargument: the six-aircraft rule creates a barrier to entry that stifles competition and entrenches incumbents.
This therefore calls for a balanced approach: Create a tiered licensing regime. Small operators with 2 – 3 aircraft could serve low-traffic routes, with the six-aircraft threshold applied only to full scheduled operators. This would encourage regional connectivity without compromising stability.
CONCESSIONS AND PPP: THE WAY FORWARD
The concession of Enugu Airport to Aero Alliance Limited under a PPP arrangement marks a milestone. Past PPP efforts have been slow – the Enugu concession took 20 years to materialise.
There are however additional areas that PPP should be encouraged:
– Terminal modernisation: Lagos, Abuja, Kano, and Port Harcourt.
– Cargo infrastructure: To position Nigeria as a regional logistics hub.
– Maintenance, Repair, and Overhaul (MRO) facilities: To reduce the $1-3 million cost of sending aircraft abroad for C-checks.
UNSERVICEABLE AIRCRAFT: A SAFETY AND CAPACITY ISSUE
Nigeria ranks first globally in the number of unserviceable aircraft, with a reported 70% of its fleet grounded. These aircraft occupy valuable ramp space, obstructing serviceable aircraft. FAAN has appealed to operators to move them, but operators refuse because they pay no parking charges as home-base airlines.
ICAO Annex 14 mandates that aerodrome operational areas be kept clear of obstructions. Nigeria must comply.
SAFETY FIRST, SECURITY SECOND: THE GLOBAL ORDER
The global aviation mantra is “Safety first, security second.” Safety refers to preventing accidents; security refers to preventing acts of unlawful interference. Both are non-negotiable, but safety is the foundation upon which all else rests.
Nigeria’s safety record is strong. Its security infrastructure is improving but remains vulnerable. The balance must be maintained through continuous investment, training, and regulatory oversight.
THE DEBT TRAP: WHEN THE ECOSYSTEM CANNOT BREATHE
No industry can survive when its circulatory system is clogged. Nigeria’s aviation ecosystem is bleeding – not from a single wound, but from dozens of unpaid invoices that have become a systemic haemorrhage.
The numbers are staggering. Domestic airlines owe the Nigerian Civil Aviation Authority (NCAA) between N10 billion and N19 billion, plus $7.8 million in unremitted foreign currency. They owe the Federal Airports Authority of Nigeria (FAAN) approximately N18 billion in landing, parking, and terminal charges. They owe the Nigerian Airspace Management Agency (NAMA) N5 billion. And they owe ground handling companies – the very operators who ensure passengers board safely, baggage is loaded correctly, and aircraft are towed and serviced – N9 billion, a figure that AGHAN warns could double to N18 billion by December if left unchecked.
The N9 billion owed to ground handlers is particularly troubling because it is not an abstraction. It represents unpaid invoices for essential services: passenger check-in, baggage handling, aircraft towing, cabin cleaning, and ramp operations. When AGHAN issued a seven-day ultimatum to two major airlines in September 2026, demanding that they clear 75% of their outstanding debts or face service suspension, it was not sabre-rattling. It was survival. As AGHAN Chairman Olaniyi Adigun put it: “I don’t see how we can survive with N9bn debt in May; by December it would be N18bn, so we have to stop it”.
The NCAA’s response has been equally firm. In May 2026, the regulator placed 11 domestic airlines – including Air Peace, Ibom Air, Arik Air, United Nigeria Airlines, Max Air, and others – on a “No-Pay-No-Service” list, directing all directorates to withhold regulatory services until financial clearance is obtained. The message is unambiguous: the era of using statutory funds as interest-free overdrafts is over.
But here is the uncomfortable truth that must be confronted: the airlines are not solely to blame. They operate in an economic vice. While they generate 100% of their revenue in naira, nearly 90% of their operational costs – aircraft leasing, C-checks, spare parts, and insurance – are dollar-denominated. Fuel costs consume 35 – 40% of revenue. When the naira slides and Jet A1 prices surge, airlines face an impossible choice: pay the regulator or keep the aircraft flying.
The tragedy is that the 5% Ticket Sales Charge and Cargo Sales Charge are not the airlines’ money. They are collected from passengers in trust for the regulator. When airlines divert these funds to plug operational leaks, they are not merely defaulting on a commercial obligation – they are breaching a fiduciary duty to the flying public.
So how do we resolve this in line with global best practices? The answer lies in a multi-layered approach that addresses both the symptom (unpaid debts) and the disease (structural financial fragility).
GLOBAL BEST PRACTICES: LESSONS FOR NIGERIA
First, establish a creditworthiness framework. India has proposed to ICAO a standardised Airline Health Score (AHS) framework that would assess airlines on financial, operational, and safety performance. Under this system, airlines would be rated and payment terms would be tiered accordingly: pre-payment for low-rated carriers, extended credit for high-rated carriers. ICAO has been urged to form a working group with states, IATA, ACI, and financial institutions to refine the methodology. Nigeria should adopt this framework domestically and advocate for its global implementation.
Second, reform the payment architecture. The current post-service credit model is fundamentally broken. IATA’s Cargo Accounts Settlement System (CASS) offers a proven alternative for cargo transactions, with a 100% on-time settlement rate. A similar model could be adapted for passenger-related charges, with automated remittance and escrow arrangements to ensure that funds collected on behalf of regulators reach them.
Third, introduce structured debt resolution mechanisms. The Federal Government’s 30% discount on airline debts to FAAN and NAMA – while well-intentioned – was criticised by industry experts as a wrong move that amounts to waiving public funds without addressing root causes. What is needed instead is a binding tripartite agreement between airlines, regulators, and service providers, with clear timelines, penalties for non-compliance, and safeguards to prevent future accumulation. AGHAN itself has called for exactly this: a binding agreement that ensures commercial discipline across the value chain.
Fourth, address the liquidity crisis at its source. Airlines need access to affordable, long-term financing for fleet renewal and infrastructure. The Aviation Leasing Company proposed by the Minister of Aviation & Aerospace, Festus Keyamo, is a step in the right direction. But it must be complemented by a dedicated Aviation Development Fund – ring-fenced from the TSA and managed transparently – to provide working capital support, particularly for fuel purchases and maintenance.
Fifth, enforce transparency. The reason Nigerian airlines find themselves in this debt trap is partly because they have operated in an environment of opacity. The NCAA should publish an annual Aviation Industry Financial Report detailing revenue flows, outstanding debts, and utilisation of statutory funds. Airlines that receive public concessions must open their books to scrutiny.
Sixth, learn from global government intervention models. During the COVID-19 crisis, the United States provided a $25 billion bailout to its airlines, with American Airlines receiving $5.8 billion and Delta $5.4 billion. Air France-KLM secured €9 billion in government aid. The European Commission approved €167.8 million in restructuring aid for Corsair, subject to conditions including flight rotation reductions and slot releases. The lesson is not that Nigeria should simply write cheques – it cannot afford to. The lesson is that government support must be structured, conditional, and tied to demonstrable improvements in financial governance and operational efficiency.
THE PATH FORWARD
The debt crisis is not merely a financial problem. It is a reputational and existential threat to Nigerian aviation. When ground handlers threaten to withdraw services and regulators place airlines on no-service lists, the ultimate victims are the passengers – Nigerians who depend on air travel for business, family, and survival.
The solution requires courage from all sides:
· Airlines must embrace transparency, honour their fiduciary duties, and stop treating statutory funds as working capital.
· Regulators must enforce discipline without strangling the industry, and must publish data on debt exposure and resolution.
· Ground handlers must be protected from becoming de facto financiers of airlines.
· Government must create an enabling environment through structured financing, tax reform, and infrastructure investment – not through ad hoc debt waivers that reward indiscipline.
The boiling pot can be brought under control. But it requires a commitment to commercial discipline, financial transparency, and global best practices. The alternative – a sector in perpetual crisis – is unacceptable for a nation of Nigeria’s potential.
CONCLUSION
Nigerian aviation is a boiling pot, but it need not boil over. The path to sustainability requires:
Policy reform: Remove aviation from the TSA; ring-fence aviation revenue; review the 5% TSC.
Infrastructure investment: Expand airport capacity; develop MRO facilities; enforce removal of unserviceable aircraft.
Transparency: Mandate financial disclosure from airlines; publish industry revenue data.
Professional communication: Train and certify aviation Public Relations practitioners; CEOs must empower professionals to communicate strategically and responsibly.
Union engagement: Recognise unions as partners in safety and industry advocacy, not adversaries.
Stakeholders should pay for services.
Government support: Learn from Singapore; treat aviation as a strategic economic asset, not a revenue extraction point.
The boiling pot can become a cauldron of prosperity. But it requires courage, data, and a commitment to best practices. The time for action is now.
Basil Agboarumi, fnipr, is a Fellow of the Nigerian Institute of Public Relations (NIPR), Lead Consultant/CEO of The Onward Public Relations (TOPR), Chairman of the NIPR Aviation Hub, and Immediate Past Managing Director/CEO of Skyway Aviation Handling Company (SAHCO) PLC, with more than three decades of experience in the Nigerian aviation sector. He writes from Lagos,