By Fiscal Posts
Economic analyst Bismark Rewane says Nigeria’s aviation sector lost an estimated $3.5 billion in revenue between 2020 and 2022, largely due to poor infrastructure and inefficiencies that continue to plague the industry.
Speaking at the annual lecture of the League of Aviation and Airport Correspondents (LAAC) in Lagos on Thursday, themed “Financing Aviation in Nigeria”, Rewane noted that inadequate facilities not only limit revenue potential but also compromise safety standards.
According to him, countries with weak infrastructure—such as Pakistan and Bangladesh—record higher accident rates compared to advanced economies where aviation facilities are robust. Nigeria, he said, is no exception. He recalled that the now-defunct Nigeria Airways suffered two fatal crashes—Flight 825 in 1973 and Flight 212 in 1991—blaming both tragedies on poor management and leadership.
Rewane pointed out that the air transport sector in Nigeria has contracted for six consecutive quarters. Of the country’s 32 airports, only 22 are considered viable, with 96% of passenger traffic flowing through just four major hubs. “It’s a case of plenty of airports, but short on service delivery—when what you really need is safety, reliability, and efficiency,” he stressed.
He added that while Nigeria currently has 23 active domestic airlines, just five carriers control 75% of the market share, creating a fragmented industry structure. Domestic passenger traffic, which stood at 11.5 million in 2022, has stagnated rather than expanding in line with demand potential.
The turbulence in Nigeria’s aviation sector has been years in the making—ranging from chronic underinvestment in infrastructure and lack of access to financing, to high operating costs and policy inconsistencies. These issues have driven up ticket prices, limited connectivity, and undermined the country’s ability to compete regionally.
Rewane warned that without targeted investment in airport facilities, safety oversight, and airline capacity, the sector risks further losses and missed growth opportunities in the coming years.