“$3–4m Per Aircraft: Ibom Air Boss Calls Foreign Maintenance ‘A Costly Scam’, Warns of Industry Collapse”
Acting CEO of Ibom Air, George Uriesi, has issued a stark warning to the Nigerian aviation industry, describing the continued reliance on overseas aircraft maintenance as “unsustainable” and “a scam”.
Speaking at the 2025 FAAN National Aviation Conference (FNAC), Uriesi revealed that maintenance budgets initially estimated at $1.5 million routinely balloon to as much as $3 to $4 million per aircraft, placing immense financial strain on local carriers.
“Every time we maintain our aeroplanes outside, planning becomes extremely difficult, and costs soar beyond reason”, he said, warning that Nigerian airlines are being systematically exploited by foreign maintenance providers.
Push for Local Maintenance Capabilities
Uriesi stressed that the only viable long-term solution is to build and utilise domestic maintenance infrastructure.
“We need to start maintaining our aircraft inside Nigeria, at least partially. The current approach is financially crippling”.
He noted that total dependence on foreign MROs leaves Nigerian airlines vulnerable to unpredictable pricing and extended aircraft downtime, directly impacting profitability and operational stability.
Financing at 30% Interest: ‘We Pay $500 Where Europe Pays $100
Ibom Air operates new Airbus A220s, but Uriesi highlighted alarming disparities in financing costs.
While European carriers secure aircraft loans at 3 to 4% over 15 years, Nigerian airlines face interest rates of up to 30% over just seven years.
“A European operator might pay $100 per month for an aircraft; we pay $500”, he revealed, calling the gap “crippling and growth-restrictive”.
Insurance, Taxes, and Fees Add to the Burden
Uriesi also pointed to insurance premiums that are nearly double those paid by global counterparts, despite comparable risk exposure.
“Why is Nigeria treated differently?” he asked, urging regulators and insurers to review what he described as “punitive cost structures” imposed on local airlines.
Taxes and regulatory charges further squeeze operators. A Lagos–Accra flight, he noted, attracts about $185 in combined taxes, with the Nigerian Civil Aviation Authority (NCAA) set to add another $11.50 per flight. When ground handling, fuel, landing fees, and overflight charges are included, Uriesi said profitable ticket pricing becomes almost impossible.
Ibom Air’s Revenue Growth Amid Systemic Challenges
Despite the hostile operating environment, Ibom Air has recorded an 88% compounded average revenue growth since 2019. Uriesi credited recent ministerial interventions for easing some aircraft-acquisition barriers but stressed that the larger systemic issues remain unresolved.
“The airline is the heavy lifter”, he said. “We earn in naira but pay in dollars. Every inefficiency in the ecosystem flows down to the airline”.
Fixing Maintenance Inefficiencies Could Transform the Industry Overnight
Uriesi concluded that achieving sustainable profitability in Nigeria’s aviation sector is akin to navigating an obstacle course dominated by dollar-denominated costs, infrastructure gaps, regulatory burdens, and operational inefficiencies.
“Addressing aircraft maintenance inefficiencies and other bottlenecks could transform the financial health of Nigerian airlines almost overnight”, he said.