Nigeria’s aviation sector is in a dire situation, according to Prof. Obiora Okonkwo, CEO of United Nigeria Airline.
Speaking on Arise TV, Okonkwo described the industry as being on “life support,” facing an increasingly hostile business environment that threatens the survival of domestic airlines.
The sector is plagued by a disproportionate number of grounded aircraft compared to those in operation, compounded by the unavailability of single-digit loans.
Okonkwo highlighted the insurmountable challenges posed by multiple taxation and unfavorable foreign exchange rates, which significantly hamper the profitability and competitiveness of Nigerian airlines.
Okonkwo criticized the exorbitant interest rates on loans—up to 35%—that domestic airlines must contend with, in contrast to the much lower rates available to their international counterparts.
Additionally, he pointed out that Nigerian airlines are burdened with some of the highest aviation charges globally, despite the substandard state of airport facilities.
The situation is further worsened by excessive government deductions from ticket sales, with approximately 20 charges levied per ticket, leaving airlines with razor-thin profit margins.
Okonkwo also expressed concern over the proposed 800% increase in fees by the Nigerian Airspace Management Agency (NAMA), deeming it unsustainable for the industry.
As a result of these pressures, many aircraft remain grounded, putting additional strain on those still in operation.
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Without significant intervention, Okonkwo warns that the resilience of Nigeria’s domestic airlines may soon reach its limits, jeopardizing the future of air travel in the country.
