High Fees and Passenger Behavior Challenge Nigerian Airlines' Growth
The excessive charges imposed by government agencies in Nigeria’s aviation industry are stifling the growth of indigenous airlines, according to Prof. Obiora Okonkwo, Chairman of United Nigeria Airlines. Speaking during the airline’s fourth anniversary celebration, he called on the Federal Government to urgently address the challenges affecting the sub-sector, emphasizing that operators face crippling financial burdens.
Prof. Okonkwo explained that airlines are required to pay multiple fees to various agencies, including the Nigeria Civil Aviation Authority (NCAA), the Nigerian Airspace Management Agency (NAMA), and the Federal Airports Authority of Nigeria (FAAN). He noted that these charges—spread across about 20 agencies—leave operators with little to no funds to reinvest in their businesses. “The profit margin in aviation is very low, and these excessive fees make it nearly impossible for airlines to expand, improve operations, or create better working environments for their staff,” he said.
Despite these challenges, Okonkwo praised the forex reforms introduced by President Bola Tinubu, which he described as a game-changer for the airline sub-sector. He stated that the new policies have made it easier for airlines to access foreign currencies, a previously daunting task that caused many operators to lose contracts and vendors. “Before now, converting naira to foreign currencies to meet obligations was a nightmare. The current administration has cleared nearly a billion US dollars owed to foreign operators, restoring Nigeria’s reputation in the global aviation industry,” he added.
Okonkwo also highlighted the benefits of the Federal Government’s domestication of the Cape Town Convention (CTC), which has reduced operational costs for airlines. However, he urged the government to go further by creating a special funding window for local operators to access single-digit loans, which would help drive industry growth.
Beyond financial hurdles, Okonkwo pointed to unruly passenger behavior as a significant challenge for Nigerian airlines. He lamented that passengers often overreact to flight delays, which are common globally, and that their conduct sometimes leads to staff assaults and equipment damage. “We go above and beyond to satisfy passengers, far more than most airlines worldwide, yet operators are under immense stress due to their attitudes,” he noted.
On a positive note, the airline’s Chief Operating Officer, Mazi Osita Okonkwo, announced that United Nigeria Airlines has expanded its domestic network by adding Benin, Kano, and Sokoto to its routes. Additionally, the airline recently renewed its operating certificate and is making strides toward launching regional and international services. These developments signal the company’s determination to grow despite the industry’s current challenges.
As Africa’s largest economy, Nigeria holds enormous potential for aviation growth, but addressing these systemic issues—ranging from excessive charges to funding barriers—will be critical to unlocking the full potential of its indigenous airlines.
