By David Akinmola
Nigeria’s aviation industry recorded a sharp 47.3 per cent contraction, marking its first major decline in nearly two years amid rising operational costs, foreign exchange pressures and declining passenger traffic across the sector.
The development highlights growing challenges confronting domestic airlines and other operators within the aviation value chain as the industry struggles with high fuel prices, aircraft maintenance costs and reduced consumer spending.
Industry analysts said the contraction reflects the difficult operating environment facing airline operators, many of whom have continued to grapple with foreign exchange scarcity, multiple taxes and escalating airport charges.
The decline also comes amid concerns over the sustainability of domestic airline operations, with several carriers reducing flight frequencies and suspending some routes due to cost pressures.
Stakeholders noted that aviation businesses remain heavily exposed to exchange rate volatility because a significant portion of their operational expenses, including aircraft leasing, spare parts procurement and maintenance services, are denominated in foreign currencies.
According to industry operators, the rising cost of aviation fuel, which remains one of the biggest components of airline expenditure, has continued to erode profit margins and increase airfares, thereby affecting passenger demand.
Experts warned that prolonged contraction within the aviation industry could negatively impact tourism, trade, investment flows and broader economic activities that depend on efficient air transportation.
They called for targeted government intervention, including improved access to foreign exchange, reduction in multiple levies and enhanced infrastructure support to stabilise the sector and restore investor confidence.
Despite the downturn, stakeholders expressed optimism that ongoing reforms and investments in airport infrastructure, safety systems and regulatory oversight could support gradual recovery in the medium term.
