Nigeria Aviation: The Boiling Pot – A Public  Relations Perspective on the Path to Global Competitiveness

Basil Agboarumi

The 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 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. This piece offers both.

The Mortality Question: Why Nigerian Airlines Die Young

Over the last four decades, more than 100 Nigerian airlines have gone under. Between 2000 and 2020, the average lifespan of a Nigerian airline was just five years. In the last 25 years alone, over 30 airlines have closed shop – ADC, Afrijet, Albarka, Bellview, Chanchangi, Sosoliso, and Virgin Nigeria among them. The average operational lifespan is between five and ten years. Aero Contractors (founded 1959) is an exception that proves the rule.

The reasons are not mysterious. Fuel costs account for 35-40% of airline revenue. A Lagos – Abuja return flight requires about 8,000 litres, costing approximately N8 million before salaries or maintenance. Jet A-1 and aircraft leases are dollar-denominated while airlines earn in naira. Every 18 months, each aircraft requires a C-check costing $1-3 million, with no heavy maintenance facilities in Nigeria. 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.”

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 – the best safety record in Africa. Nigeria earned US FAA Category One status in 2010, retained it in 2014 and 2017, and has undergone ICAO audits with no Significant Safety or Security Concerns. However, in September 2022, the FAA de-listed countries that had not provided indigenous airline services to the US within two years. Nigeria was de-listed – not for safety deficiencies, but because no Nigerian carrier was flying to the US. 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 Civil Aviation Act 2023 contains clauses unions describe as anti-labour, including restrictions on strike and picket. NUATE has accused some airlines of making employment conditional upon not joining a trade union – a violation of Nigerian labour law. Globally, unionism is institutionalised and regulated. The ILO protects freedom of association. In the US, the Railway Labor Act requires mediation before strikes. Collective bargaining protects worker welfare and safety standards; unregulated strike action can cripple operations. The 2023 Act contradicts the Trade Unions Act 2004. The way forward is not to suppress unionism but to professionalise it – unions as partners in safety oversight, not adversaries.

Taxes And Charges: The True Picture

The most contentious charge is the 5% Ticket Sales Charge (TSC) imposed by the NCAA. Air Peace Chairman Allen Onyema has described it as fiscally constricting, arguing for a fixed flat rate per ticket. The 5% TSC was introduced over 45 years ago under the Gowon administration. The defunct Nigerian Airways did not pay it – the charge was introduced to fund the regulator after the national carrier’s decline. Beyond the TSC, airlines face charges from NAMA, FAAN, NiMet, and state governments. 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 reinvest levies in the sector. Singapore ring-fences aviation revenue for infrastructure and safety. Nigeria should move to fixed, transparent fees; automate remittance; and ring-fence aviation revenue for infrastructure renewal.

Airport Security: Perception Vs. Reality

Key vulnerabilities include insider threats, weak access controls, outdated screening technologies, and porous perimeter fencing. However, e-gates linked to Interpol have been installed at five international airports, and advanced passenger screening is underway. 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 – a Public Relations failure as much as an operational one.

Infrastructure: The Ramp Congestion Crisis

Murtala Muhammed International Airport, Lagos, was built over 40 years ago and has seen no major structural expansion. In 1979, it handled about eight international flights; today it handles about 272 aircraft movements daily and 32 international airlines. The NCAA’s reduction of AOC acquisition time has accelerated licensing without commensurate infrastructure. The way out: slot management for Lagos and Abuja; AI-powered ramp management; sunset airport upgrades; and enforcement of 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. Yet Nigeria has just 31 airports, 92 airstrips, and 131 heliports. Only three airports handle 92% of traffic, and only two are profitable. IATA requires five million passengers yearly for viability; most Nigerian airports fall far short. Singapore Changi Airport accommodates over 68 million passengers annually and contributes approximately 5% to Singapore’s GDP. Nigeria should adopt a hub-and-spoke model, ring-fence aviation revenue, and pursue strategic partnerships. The concession of Enugu Airport 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. Fuel costs consume 35-40% of revenue; C-checks cost millions; exchange rate volatility erodes the rest. Most Nigerian airlines do not open their books. Ibom Air is a notable exception. At its 2025 AGM, Ibom Air reported revenue of N96 billion in 2024 (up 43%), operational profit of N16.6 billion, and net profit of N6.8 billion. This proves profitability is possible – but only with transparency, fiscal discipline, and strategic planning. Transparency attracts investment and builds public trust.

The NCAA 5% TSC: Sharing Formula And Utilisation

The NCAA collects 5% of ticket sales, but this is not retained entirely by the regulator. NAMA is seeking 56% (up from 22%), NCAA wants 65% restored, and the African Aviation and Aerospace University is requesting 10%. The TSC funds regulatory oversight, air navigation, meteorological services, accident investigation, and training. However, transparency in remittance and utilisation remains a challenge. Proposed amendments to the Civil Aviation Act seek to automate remittance and improve accountability.

JET A1: The Fuel Crisis

Between February 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 global crude prices rose by only 30%. For an oil-producing country, this is a paradox. Nigeria refines almost none of its own jet fuel. The cost of fuelling a single domestic flight skyrocketed from N2.1 million to N7.6 million. 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 requires aviation agencies to remit a percentage of internally generated revenue to the Federation Account – 25% under Buhari, rising to 50% under Tinubu, recently reduced to 30%. ICAO Document 8632 urges member states to direct aviation levies back into the industry. The TSA contradicts this. Aviation is safety-critical; its revenues should fund safety infrastructure. Government should remove aviation parastatals from the TSA and 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. ICAO regulations place no minimum aircraft requirement. The NCAA rationale is to prevent fragile airlines; the counterargument is that it stifles competition. A tiered licensing regime would balance both: small operators with 2-3 aircraft serving low-traffic routes, with the six-aircraft threshold for full scheduled operators.

 Concessions and PPP: The Way Forward

The Enugu Airport concession marks a milestone, but took 20 years to materialise. PPP should be encouraged in terminal modernisation (Lagos, Abuja, Kano, Port Harcourt), cargo infrastructure, and 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 unserviceable aircraft, with 70% of its fleet grounded. These occupy valuable ramp space. ICAO Annex 14 mandates that operational areas be kept clear of obstructions. Nigeria must comply.

 The Debt Trap: When the Ecosystem Cannot Breathe

No industry can survive when its circulatory system is clogged. Domestic airlines owe the NCAA between N10 billion and N19 billion, plus $7.8 million in unremitted foreign currency. They owe FAAN approximately N18 billion, NAMA N5 billion, and ground handlers N9 billion – a figure AGHAN warns could double to N18 billion by December. When AGHAN issued a seven-day ultimatum in September 2026, it was survival, not sabre-rattling. The NCAA placed 11 airlines on a “No-Pay-No-Service” list.

But airlines are not solely to blame. They earn in naira while 90% of costs are dollar-denominated. The 5% TSC and CSC are not the airlines’ money – they are collected in trust. Diverting them breaches a fiduciary duty to the flying public.

Global Best Practices: Lessons for Nigeria

First, establish a creditworthiness framework. India has proposed to ICAO an Airline Health Score assessing financial, operational, and safety performance, with tiered payment terms. Nigeria should adopt this domestically.

Second, reform the payment architecture. IATA’s Cargo Accounts Settlement System offers a proven model with automated remittance and escrow arrangements.

Third, introduce structured debt resolution. The Federal Government’s 30% discount on airline debts was criticised as waiving public funds without addressing root causes. A binding tripartite agreement between airlines, regulators, and service providers is needed.

Fourth, address liquidity at source. The Aviation Leasing Company proposed by Minister Festus Keyamo is a step forward, but must be complemented by a dedicated Aviation Development Fund.

Fifth, enforce transparency. The NCAA should publish an annual Aviation Industry Financial Report detailing revenue flows and outstanding debts.

Sixth, learn from global intervention models. During COVID-19, the US provided a $25 billion bailout; Air France-KLM secured €9 billion. Government support must be structured, conditional, and tied to improved financial governance.

Conclusion and the Path Forward

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 PR practitioners; CEOs must empower professionals to communicate responsibly and strategically.

Union engagement: Recognise unions as partners in safety and industry advocacy.

Debt resolution: Implement binding tripartite agreements and creditworthiness frameworks.

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.

• Agboarumi, a Fellow of the Nigerian Institute of Public Relations (NIPR), member of the Chattered Institute of Directors (CIoD), Lead Consultant/CEO of The Onward Public Relations (TOPR), Chairman of the NIPR Aviation Hub, and former Managing Director/CEO of Skyway Aviation Handling Company (SAHCO) PLC, writes from Lagos.