Aviation Sector Lost $3.5Bn Revenue to Poor Infrastructure in 3 Years

The Chief Executive Officer of Financial Derivatives Company (FDC), Mr. Bismarck Rewane, has stated that due to poor infrastructure, Nigeria’s aviation sector lost $3.5 billion in revenue between 2020 and 2022.

Speaking at the 29th edition of the League of Airports and Aviation Correspondent (LAAC) annual conference with theme: ‘Aviation Financing in Nigeria: Risks, Opportunities and Prospect’ held in Lagos yesterday, Rewane noted that the downward trend of the sector occasioned by poor infrastructure equally saw to domestic passenger traffic declined for the second straight year to 11.5mn in 2024.

He maintained that the aviation industry was fragmented, as the sector is indeed facing fragmentation, leading to inefficiencies and challenges in its overall performance.

This fragmentation manifests in various ways, including a proliferation of government agencies with overlapping functions, inadequate infrastructure, and a lack of integration among different parts of the sector.

Many airports lack sufficient capacity and modern facilities, leading to delays and cancellations, just as the different segments of the aviation industry, such as airlines, maintenance providers, and regulatory bodies, often operate in isolation, hindering overall efficiency and safety.

Taking a peep into the country’s aviation sector in 2025, the economist disclosed that the air transport sector contracted by 0.81 per cent in Q1 2025, the sixth consecutive quarterly decline.

This, he said, manifested in the viability of the nation’s airport, saying: “Nigeria has 32 airports, only 20 were considered viable in 2024, and 92-96 per cent of traffic flows through just four.

“Nigeria has 23 active domestic airlines; however, five airlines control 75 per cent of traffic. The industry is fragmented”.