Former FAAN MD Outlines Structural Challenges, 2025 Performance of Nigeria's Aviation Sector
Former Managing Director of the Federal Airports Authority of Nigeria, Dr. Richard Aisuebeogun, has presented a comprehensive assessment of the nation's aviation industry, identifying persistent structural constraints while acknowledging measured progress in policy reforms and infrastructure investment.
Speaking during an interview tied to the release of an industry performance report, Aisuebeogun listed high operational costs, elevated jet fuel prices, multiple taxation, infrastructure financing gaps, slow project execution, limited aircraft availability, workforce retention difficulties, and weak demand driven by affordability constraints as the primary headwinds limiting sector growth.
He noted that the Nigeria Aviation Awards platform has served for fifteen years as a strategic mechanism for sector reflection and forward planning. "Aviation is inherently a long-term, capital-intensive industry that requires continuous review, reassessment, and strategic alignment. Without structured evaluation, progress becomes incidental rather than intentional," Aisuebeogun said.
In collaboration with the Nigerian Civil Aviation Authority, efforts are underway to institutionalise this review as an annual international reference document designed to bridge past performance with future planning and ensure continuity during transitional periods. He called on stakeholders to support the initiative, stating it would strengthen transparency, policy alignment, and evidence-based decision-making across the sector.
Aisuebeogun characterised 2025 as a period of recalibration marked by policy reforms, infrastructure commitments, and renewed global engagement against a backdrop of persistent challenges. He cited advancements in aircraft leasing frameworks, planned redevelopment of key airport facilities, improved intermodal connectivity, and gradual enhancements in fleet and route capacity as notable strides.
"Despite macroeconomic pressures, including inflation and high operating costs, the sector demonstrated remarkable resilience, with growth in passenger traffic and sustained government investment," he affirmed. He credited ongoing federal reforms with restoring investor confidence and strengthening regulatory certainty, pointing to enhanced NCAA oversight, improved compliance with international aviation standards, progress in resolving trapped airline funds, and stronger leasing frameworks.
Infrastructure modernisation remained a central focus. Major terminals in Lagos, Abuja, Port Harcourt, Kano, and Enugu underwent varying levels of upgrades, including terminal rehabilitation, runway improvements, safety enhancements, and preparatory steps toward concession. However, Aisuebeogun cautioned that execution delays and coordination gaps slowed visible progress. The industry recorded a 7.5 percent decline in capacity, largely attributed to high jet fuel costs, foreign exchange volatility, and limited access to affordable financing.
Lagos recorded 11.8 percent passenger traffic growth in 2025, the fastest rate in Africa. Europe remained the largest market, while travel to the United States and Dubai declined due to visa restrictions. Nigeria continues to dominate the West African market, with Lagos, Abuja, and Kano functioning as key hubs.
Domestic airlines demonstrated resilience despite financial constraints, with emerging state-backed carriers including Gateway Air, Enugu Air, and Pioneer Airlines signalling renewed interest in regional connectivity. However, Aisuebeogun noted that persistently high airfares continue to suppress demand and limit accessibility.
The push toward full implementation of the Single African Air Transport Market is expected to reduce non-physical barriers, lower fares, increase flight frequency, and enhance regional integration.
Aisuebeogun described the outlook for 2026 as cautiously optimistic. Ongoing reforms in aircraft financing, airport concessions, and private sector participation are expected to attract increased international investment, particularly in leasing, maintenance, repair and overhaul services, and airport infrastructure. "If current momentum is sustained, 2026 could deliver measurable progress in airport modernisation, improved fleet availability, expansion of maintenance capabilities, and enhanced operational efficiency," he said.
He warned that key risks persist, including foreign exchange instability, rising taxation, and high ticket prices affecting demand. Without coordinated policy intervention, these factors may constrain growth. He reiterated the need for policy consistency, efficient project execution, cost-reduction strategies, and stronger public-private collaboration.
"The year 2025 marked a defining period of reset for Nigeria's aviation industry, characterised by reform, ambition, and resilience amid structural challenges," Aisuebeogun concluded, renewing his call for a comprehensive annual aviation review document with broad stakeholder participation.