Oluwadara Omiyale
Foreign airlines continue to dominate Nigeria’s international aviation market, accounting for about 90 per cent of international passenger traffic and generating an estimated $1.7 billion in annual ticket revenues, highlighting the structural and financial constraints limiting indigenous carriers’ participation in the country’s most lucrative air travel segment.
The imbalance leaves foreign carriers controlling the bulk of Nigeria’s international passenger market while much of the revenue generated from overseas travel is repatriated outside the country. It also underscores the challenges confronting Nigerian airlines, including limited fleet capacity, access to aircraft financing, high operating costs and weak participation on long-haul international routes.
Festus Keyamo, minister of aviation and aerospace development, recently disclosed that foreign airlines currently transport between 90 and 95 per cent of passengers travelling between Nigeria and the rest of the world, despite ongoing efforts to strengthen indigenous operators’ presence on international routes.
The development comes as the Federal Government pursues policies aimed at expanding the international footprint of Nigerian airlines through wider utilisation of Bilateral Air Services Agreements (BASA), aircraft leasing initiatives and improved access to overseas destinations.
John Ojikutu, former commandant of the Murtala Muhammed International Airport, said the dominance of foreign airlines reflects Nigeria’s limited participation on continental and intercontinental routes, noting that while more than 30 foreign airlines operate into Nigeria under over 90 BASA arrangements, indigenous operators remain concentrated largely within the West African sub-region.
According to him, foreign airlines also account for about 80 per cent of the annual international revenue generated by the Federal Airports Authority of Nigeria, reinforcing the agency’s dependence on international operators for passenger service charges, landing fees and other aeronautical revenues.
For the wider aviation economy, the imbalance means Nigeria captures only a fraction of the value created by its international travel market. While foreign airlines earn substantial revenues from Nigerian passengers, domestic carriers remain largely excluded from the higher-yield long-haul market because of fleet limitations, financing constraints and operational capacity challenges.
Industry figures indicate that foreign airlines collectively deploy tens of thousands of international seats into Nigeria every week, while Nigerian operators maintain only a relatively small presence on overseas routes.
Mohammed Gbadamasi, an aviation expert, said competing internationally requires far more than obtaining route approvals, noting that airlines must possess strong balance sheets, larger fleets, dependable maintenance programmes, overseas operational infrastructure and sufficient financial resilience to withstand market volatility.
He added that established international carriers have built passenger confidence over several decades through consistent service delivery and operational reliability, advantages that many Nigerian airlines are still working to develop.
The continued dominance of foreign carriers also has implications for Nigeria’s foreign exchange position. With international ticket sales estimated at about $1.7 billion annually, much of the revenue generated by outbound travel ultimately leaves the domestic economy through profit repatriation and foreign exchange settlements.
The situation has previously contributed to tensions over trapped airline funds during periods of foreign exchange shortages, showcasing the close relationship between aviation, currency liquidity and investor confidence.
Aviation consultant Frank Oruye said Nigeria could derive greater value from its BASA agreements through a more transparent and competitive process for allocating international routes to indigenous operators, while ensuring designated airlines possess the operational capacity to sustain overseas services.
He noted that stronger participation by Nigerian airlines on international routes would improve utilisation of Nigeria’s reciprocal BASA rights and gradually reduce dependence on foreign carriers across key international markets.
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