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Five Airlines Dominate Nigeria’s Domestic Airspace – Rewane

Published by Tope Fakinlede on August 9th, 2025.

Five Airlines Dominate Nigeria’s Domestic Airspace – Rewane

Bismarck Rewane, CEO of Financial Derivatives Company, has revealed that just five out of Nigeria’s 23 operational domestic airlines are responsible for a staggering 75% of the country’s internal air travel.

He made this disclosure during the 29th Annual Conference of the League of Airport and Aviation Correspondents held in Lagos, which focused on “Financing Aviation in Nigeria: Risks, Opportunities and Prospects.”

Although Rewane didn’t list the specific airlines during his address, recent data from the Nigeria Civil Aviation Authority suggests that Air Peace, Arik Air, Ibom Air, United Nigeria, and Aero Contractors are currently leading in terms of passenger volume in 2024.

Rewane also pointed out a concerning trend in the industry: domestic air travel has declined for the second year in a row, dropping to 11.5 million passengers in 2024. He added that the air transport sector shrank by 0.81% in Q1 2025, marking its sixth consecutive quarterly contraction.

Of the 32 airports across Nigeria, Rewane noted that only 20 were economically viable last year. More strikingly, between 92% and 96% of all air traffic was concentrated in just four airports, a situation he linked to inadequate infrastructure in the aviation sector.

He also disclosed that Nigeria’s aviation industry suffered a $3.5 billion revenue loss between 2020 and 2022. According to him, despite the huge financial outlays on airport operations, traffic continues to fall—suggesting a misalignment between spending and actual performance.

Rewane emphasized the need for robust regulatory oversight to ensure safety and sustainability. He advocated for increased private sector participation through concessions and Public-Private Partnerships (PPPs) to modernize airport infrastructure. He also urged the government to concentrate on policy-making and regulation, rather than directly managing airlines or constructing airports. A consistent and reliable policy framework, he argued, is essential for rebuilding investor confidence and attracting global aviation capital.

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Airline Operators Seek Government Support Amid Industry Challenges

Meanwhile, airline executives also weighed in on the challenges faced by the aviation sector, calling on the Federal Government to provide a special foreign exchange window to help ease financial pressure on local carriers.

Dr. Allen Onyema, CEO of Air Peace, highlighted several persistent issues including inadequate infrastructure, excessive regulatory charges, and difficulties in accessing foreign currency. He noted that these challenges have hindered the growth of indigenous airlines and contributed to their high failure rate.

Speaking during a panel session at the same conference, Onyema suggested that the government could partner with institutions like the Central Bank of Nigeria or the African Development Bank to facilitate easier access to foreign exchange for airline operators.

He also acknowledged that Nigerian airlines had battled trust issues in the past due to inconsistent operations. However, he maintained that the current crop of operators has significantly improved the industry’s image by honoring contractual obligations and maintaining financial credibility.

Onyema praised the efforts of the Minister of Aviation and Aerospace Development, Festus Keyamo, for facilitating dry lease agreements—a move that had previously been stalled for over a decade due to industry skepticism from international aircraft lessors. He said this development would enhance operational efficiency and boost aviation’s contribution to the nation’s GDP.

“Integrity is crucial in this business,” Onyema said. “Air Peace has earned its position by proving its financial credibility. Still, airlines need government support—especially access to affordable forex—to survive and grow. In turn