The High Mortality Rate of Nigerian Airlines: Why Policy Reform Can’t Wait

Nigeria’s aviation industry plays a vital role in enabling administrative growth, economic development, and global connectivity through trade, tourism, and investment flows. Since independence, the sector has evolved from a single national carrier to multiple operators serving an expanding market. Despite this progress, airline failures remain alarmingly frequent.

Findings show that over 62 Nigerian airlines have become extinct since 1960, a trend attributed to persistent systemic challenges and an unfavorable operating environment in the sector.

To build a sustainable aviation sector, policymakers and stakeholders must confront these issues head-on.

Core Challenges Driving Airline Mortality

1. Political Interference in Regulation

Although aviation safety and oversight policies exist, weak implementation and excessive ministerial control undermine the regulatory independence of the Nigerian Civil Aviation Authority (NCAA). This gap disrupts operational efficiency and reduces investor confidence.

2. Infrastructure Deficit

Out of Nigeria’s 26+ airports, only a handful operate 24 hours in Lagos, Abuja, Port Harcourt, Kano, and Kaduna. The majority lack nighttime landing capabilities and operate only eight hours daily, leading to underutilized aircraft and lost revenue.

3. FX Instability, High Cost of Operations & Multiple Taxes

Aviation expenses are dollar-denominated, but airline revenue is largely in naira creating vulnerability to foreign exchange volatility.
Operators face:

• Spiking operating costs

• Multiple high tax burdens

• Unpredictable financial planning and reduced profitability

 These pressures directly contribute to premature airline shutdowns.

Policy & Legislative Imperatives

There is a strong consensus that deliberate government intervention is needed for sector survival.

Key reforms highlighted include:

• A special FX access framework for aviation operators

• Establishment of a domestic Maintenance, Repairs & Overhaul (MRO) hub

• Infrastructure investments enabling nationwide 24-hour airport operations

• Government-backed aircraft leasing and financing arrangements with private sector partners

• Full enforcement of NCAA’s autonomy as provided under Section 4 of the Civil Aviation Act, 2022

Without decisive policy realignment, more airlines risk collapse.

Business & Economic Relevance

Nigeria’s aviation industry doesn’t only transport passengers but it sustains jobs, facilitates trade, attracts investment, and connects economic centres across the country. Reducing the high failure rate of airlines is therefore essential for national competitiveness and economic resilience.

Conclusion

The survival of Nigerian airlines depends on policy consistency, infrastructure modernization, strategic financing support, and the insulation of regulation from political influence. Urgent reforms are not optional but they are fundamental to safeguarding Nigeria’s aviation future.

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THE HIGH MORTALITY RATE OF NIGERIAN AIRLINES
 

This article is for general informational purposes only and does not constitute legal advice. For regulatory guidance or sector-specific advisory, please contact Maverick Solicitors at info@mavericksolicitors.com.