Nigeria’s aviation sector is undergoing a pivotal transformation. The year 2025 has emerged as a defining period, marked by strategic policy execution that is methodically repositioning the industry to compete and collaborate on the global stage. This analysis delves beyond the headlines to explore the concrete milestones, the underlying frameworks enabling change, and the critical challenges that must still be navigated to secure a sustainable future.
The Catalytic Impact of the Cape Town Convention
The single most significant policy achievement was Nigeria’s ratification of the Cape Town Convention (CTC) in 2024 and its subsequent implementation. For over a decade, Nigeria’s presence on the Financial Action Task Force’s grey list severely limited financing options. The removal from this list, coupled with CTC ratification, restored international trust in Nigeria’s legal framework for asset-backed financing.
This shift is technical but profound. Previously, Nigerian airlines were largely confined to wet leases—renting an aircraft along with its crew, maintenance, and insurance, often at high cost and with limited control. The CTC enables dry leasing, where an airline leases only the aircraft, managing operations itself. This is cheaper and allows for brand consistency and long-term fleet planning. The establishment of the Irrevocable Deregistration and Export Requisite Authorisation (IDERA) under the CTC protocol gives lessors confidence they can repossess their asset if necessary, a key factor in global leasing.
As Mr. Fortune Idu, Chairman of the Nigerian Aviation Center, notes, this has directly enabled carriers like Air Peace to pursue fleet expansion. Nigeria’s compliance rating improving to 75.5% is a positive signal; achieving full compliance will unlock even more competitive financing and attract global lessors, positioning Nigeria as a serious aviation market.
Beyond Leasing: A Multi-Faceted Policy Push
The policy focus extends far beyond aircraft acquisition. Stakeholders highlight a concerted effort to create an enabling ecosystem:
- Infrastructure & Market Access: Development of state airports and the push for a Single African Air Transport Market (SAATM) aim to deepen domestic connectivity and integrate Nigeria into continental networks. The successful hosting of Nigeria’s first international airshow demonstrated potential and attracted investor attention.
- Fuel Security: The operationalization of the Dangote Refinery has introduced a crucial element of stability. Reliable, locally-sourced Jet A1 fuel mitigates a historic operational risk that caused rampant flight disruptions and cost volatility.
- Government Advocacy: President Bola Tinubu’s direct appeal to investors underscores a top-down recognition of the sector’s value. Highlighting Nigeria’s 220-million-strong market, strategic location, and potential in cargo, MRO (Maintenance, Repair, and Overhaul), and green airport development frames the opportunity in terms global capital understands.
Persistent Hurdles: The Gap Between Policy and Passenger Experience
Despite these advancements, analysts like Mr. Basil Agboarumi of the NIPR Aviation Hub caution that systemic operational hurdles continue to erode consumer confidence and operator viability.
- Passenger Pain Points: High fares, frequent delays/cancellations, and baggage handling issues remain endemic. These are symptoms of deeper issues—aircraft shortages, high operational costs, and infrastructural bottlenecks.
- Operator Squeeze: Airlines grapple with foreign exchange volatility, multiple taxations, and costly lease agreements. The proposed national aircraft leasing company, advocated by Minister Festus Keyamo, is a direct response aimed at pooling airline bargaining power.
- Infrastructure Deficit: While new airports are emerging, key hubs like Lagos’s Murtala Mohammed International require accelerated upgrades. Congestion at terminals and on runways directly impacts efficiency and safety, with incidents like bird strikes highlighting environmental management gaps.
The Path Forward: From Implementation to Internalization
For Nigeria’s aviation industry to achieve genuine global relevance, policy implementation must evolve into institutionalized best practice. Key recommendations from experts include:
- Passenger-Centric Regulation: The NCAA must enforce transparent, automatic compensation for service failures and mandate clear baggage delivery standards. Policy must protect the traveler’s dignity and rights.
- Holistic Cost Reform: A government-led inter-agency task force is needed to eliminate duplicative charges and taxes that stifle airlines. The proposed aviation intervention fund with single-digit interest rates is critical for fleet modernization.
- Master Plan Execution: Every airport, new or old, requires a published, funded master plan focused on efficiency—modern baggage systems, runway maintenance, and digital passenger processing—to attract private investment through concessions.
- Proactive Safety & Security: Moving from reactive measures to a national wildlife hazard management plan and stronger protocols against unruly passengers.
Conclusion: The strategic policy groundwork laid in 2025, particularly around the Cape Town Convention, has repositioned Nigeria’s aviation industry at the threshold of global relevance. The transition from wet to dry leasing symbolizes a broader shift towards sovereignty and sustainability in operations. However, the true test lies in addressing the persistent operational and consumer experience challenges. If stakeholders can bridge this gap—translating high-level policy into daily operational excellence and passenger satisfaction—Nigeria can evolve from a market of potential to a respected, competitive, and central node in global aviation networks. The focus for 2026 must be on relentless execution and holistic ecosystem development.
Credit: Itohan Abara-Laserian / News Agency of Nigeria (NAN). Analysis expanded with expert context.
