June 17, 2026
The declaration by the International Air Transport Association (IATA) that Nigerian airlines operate under some of the harshest conditions in the world should serve as a wake-up call to policy makers. It confirms what domestic airline operators have complained about for years: that running an airline business in Nigeria is far more difficult than it ought to be.
Air travel remains indispensable to commerce, investment and national integration. Aviation is a difficult business everywhere, but the operating environment in Nigeria is seriously daunting. It is highly regulated, capital-intensive and vulnerable to economic shocks. Yet Nigerian operators face additional burdens that make survival a daily struggle.
The most obvious is the cost of aviation fuel. Jet A1 accounts for a disproportionately high share of airline operating expenses. Whenever fuel prices rise, airlines are forced to choose between increasing fares and absorbing losses. Neither option is sustainable in a market where consumers are already grappling with declining purchasing power.
The foreign exchange crisis has made matters worse. Virtually every major component of airline operations, from aircraft acquisition and leasing to maintenance, insurance and spare parts procurement, depends on foreign currency. The persistent depreciation of the naira has therefore translated directly into higher operating costs. Airlines earn largely in naira but pay many of their bills in dollars, creating a mismatch that steadily erodes profitability.
