Chairman of United Nigeria Airlines, Prof. Obiora Okonkwo, has delivered a stark assessment of Nigeria’s aviation industry, warning that domestic carriers are struggling to survive amid mounting structural and economic challenges.
Speaking at a recent International Air Transport Association (IATA) conference in Addis Ababa, Ethiopia, Okonkwo described the sector as one operating under intense pressure, with airlines bearing the brunt of systemic inefficiencies and policy imbalances.
According to him, operators remain the backbone of the aviation ecosystem but are the least protected. “Every stakeholder secures their interests—manufacturers, lessors, banks—but the operator is left to comply with conditions set by others,” he said, adding that this imbalance threatens the sustainability of the entire industry.
Okonkwo noted that while aircraft manufacturers and financiers generate significant revenue, airlines often operate on extremely thin margins, leaving them vulnerable to shocks. He argued that unless operators are adequately supported, the broader aviation value chain could collapse.
Financing and Leasing Constraints
The airline executive highlighted persistent difficulties in accessing financing, pointing out that Nigerian carriers are often excluded from favourable arrangements such as sovereign-backed guarantees available in other markets. He urged policymakers to create frameworks that would enable greater participation of local commercial banks in aircraft financing.
He also referenced past restrictions that limited aircraft leasing to Nigeria, noting that although progress has been made, operators still face stringent conditions that make leasing arrangements costly and complex.
Operational Challenges: Bird Strikes and Maintenance Gaps
Okonkwo identified operational disruptions as a major concern, revealing that his airline recorded seven bird strikes between January and April alone, leaving multiple aircraft grounded. He called for urgent investment in bird strike prevention infrastructure, noting that such incidents account for a significant portion of downtime.
He further lamented the absence of in-country Maintenance, Repair and Overhaul (MRO) facilities capable of handling major checks for aircraft such as Boeing, Airbus, and Embraer. As a result, airlines are forced to ferry aircraft abroad for maintenance at considerable cost.
Rising Insurance Costs
Insurance premiums also remain a major burden. Okonkwo disclosed that insuring six aircraft costs his airline approximately $2 million—an amount he said could cover up to 20 aircraft in other regions. This disparity, he noted, significantly increases operating costs in Nigeria.
He added that airlines continue to incur financial obligations even when aircraft are grounded, particularly under lease agreements that do not adequately account for downtime.
Call for Industry Reforms
Despite these challenges, Okonkwo acknowledged the resilience of Nigerian airlines, noting their relatively strong operational reliability. However, he stressed the need for urgent reforms to sustain growth and improve efficiency.
He called for improved corporate governance within airlines to enhance financial discipline and attract investment, while also urging operators to collectively advocate for fairer treatment within the aviation ecosystem.
“We must assert our position and demand better consideration,” he said. “Only then can we achieve a balanced system that benefits all stakeholders.”
Okonkwo concluded by expressing confidence in the long-term potential of Nigeria’s aviation market but warned that meaningful progress would depend on addressing the structural issues currently constraining the industry.
