Nigeria - Air Transport Report

  • ID: 3330394
  • Report
  • Region: Nigeria
  • SWOT Africa
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This report provides a comprehensive industry profile, analysis and outlook of Nigeria’s air-transport sector. Although oil and gas industries are major contributors to Nigeria’s GDP, transport sector has become more prominent to the overall economy in recent years. The movement of passengers, aircrafts and cargo is on the rise in Nigeria due to the rising middle class and increased internationalization of Nigerian economy. Domestic passenger traffic will, however, uphold its dominant position over the international movement of passengers in the mid-term, with wealthier Nigerians more frequently turning to air travel. Although Nigerian domestic airlines struggle to keep passengers in the air, industry experts believe that mergers might be on the o horizon as the industry is ripe for consolidation.

The report provides a SWOT analysis, full overview of the air-transport sector with a focus on the sector’s growth and value. It analyses the country’s air-transport infrastructure, as well as the country’s major airlines. It summarizes recent developments in the sector including the major projects, companies and investors. It outlines the main factors driving growth in the sector, as well as gives details on capital and financing. The Report explains the sectoral policy and regulatory environment in the country and provides an assessment of the risks and challenges in the sector for domestic and foreign investors. Finally, it provides market trends and outlook.

The report draws on national and international data, statistics, media reports and industry insights. It is useful to domestic and international investors, policy-makers, businesses and research institutions in understanding investment opportunities, risks and challenges, legal and business environment in Nigeria.
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  • AeroContractors
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  • Arik Air
  • Azman Air
  • Dana Air
  • Med-View Airline
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1. Nigeria: Country Profile

2. Sector Overview
- Aviation: Industry Profile
- Aviation and the overall growth of the transport sector

3. Recent Developments
- Privatization of Nigerian Air Traffic Control Ruled out
- Local airlines agonize over proposed recapitalisation
- FG to ground private airlines engaging in commercial operation
- Single Africa Sky by 2017
- Dwindling Oil Prices behind Austerity Measures
- Nigeria Air Cargo Summit
- US TSA to Audit Security System at Nigeria’s Airports

4. Products and Markets

5. Passenger Air Transport
- Airline operators in Nigeria
- Aircraft movement
- No National Carrier, No Alliance
- Weak base and low profitability of Nigerian operators
- Draconian charges imposed by FAAN
- N5bn debt: NAMA to ground indebted domestic airlines
- Domestic airlines: Gearing up for another recapitalisation
- Skyrocketing Fuel Prices
- Inadequate equipment at air-ports limit airlines operations
- Airline Mergers seen as Solution to the Industry Challenges
- New Flight Simulator for Nigeria
- SITA OnAir to enhance aircraft communications across Nigeria

6. Cargo Air Freight
- Nigeria’s cargo lagging behind
- Foreign airlines urge Federal Government to expand airport cargo apron
- Ground Handling Operators
- Fixing Nigeria’s Ground Handling Operations
- New cargo village to be opened by SAHCOL
- Emirates Challenging Nigerian Cargo Operators

7. Transport Infrastructure

8. Air-Ports in Nigeria
- Existing air-ports
- Nigeria’s busiest air-ports
- Passengers by airport
- Aircraft by airport
- Cargo by airport
- Airport Certification
- Upcoming Airports

9. Drivers of Growth

10. Capital and Financing

11. Availability and Cost of Labour

12. Policy and Regulatory Environment
- Regulatory Bodies
- Merger of Regulatory Bodies in 2014
- Nigeria Vision 2020
- 2014 Transport Sector Reforms
- Bilateral Air Service Agreements (BASA)
- Single Africa sky by 2017
- Aviation Licenses
- Land & Property Ownership Law Still Missing
- National Policy on Public and Private Partnerships (PPP)
- PPP Administration: Infrastructure Concession Regulatory Commission
- PPP Financing
- National Planning Commission
- Merger regulations
- Foreign Investment
- Chinese investments in transport infrastructure
- China - Africa Aviation Plan
- Turkey as Nigeria’s newest Trade & Investment Partner
- Government Policy on Foreign Ownership

13. Risks & Challenges

14. Market Trends & Outlook
- Nigeria economic outlook
- Nigerian Aviation Sector Outlook
- Challenges Remaining

List of Figures:
Figure 1: Nigeria’s provinces
Figure 2: Nigeria’s economic data, 2011-2014
Figure 3: Comparative Real GDP Growth
Figure 4: Movement of passengers, aircraft and cargo in Nigeria, 2013-3014
Figure 5: Transport and GDP growth at current basic prices, 2013-2014
Figure 6: Total Passenger Air traffic, 2010-2014
Figure 7: International and Domestic Passenger movement, 2010-2014
Figure 8: Aircraft movement in Nigeria, Jan-Sept 2013-2014
Figure 9: Aircraft movement across Nigeria’s airports, 2014
Figure 10: Nigerian Airlines, 2015
Figure 11: Cargo movement in Nigeria, Jan-June, 2013-2014
Figure 12: Harmonized cargo movement by airport, Jan-June 2014
Figure 13: Ground handling companies in Nigeria, 2015
Figure 14: Transport Infrastructure Industry Value and Growth, 2012-2015
Figure 15: Nigeria’s major airports, 2014
Figure 16: Passenger movement by airport, Jan-Sept 2014
Figure 17: Aircraft Movement by airport, Jan-Sept 2014
Figure 18: Cargo Movement by airport, Jan-June 2014
Figure 19: Sub-sectors in Transport Infrastructure Industry statistics, 2012-2015
Figure 20: Trade Sector Real Growth, 2013-2014
Figure 21: Population breakdown, 2014
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Nigeria’s vibrant aviation industry will continue its growth momentum throughout 2015. Movement of passengers and aircrafts is on a steady rise. Domestic passenger traffic will uphold its dominant position over the international movement of passengers in the mid-term. Air cargo transport will continue its rapid expansion as Nigeria’s trade volumes are steadily increasing. Asian and Middle Eastern airlines are increasing their frequencies and routes to Nigeria. Nigeria has officially become the largest African economy with its new GDP increase to 80 trillion naira ($488 billion) and the GDP per capita is now $3 000. Foreign Investment continues to flow into Nigeria's infrastructure sector. In 2013, Nigeria on the whole received the largest amount of FDI in Africa - almost 15 % of the total.


Nigeria has no national carrier that could compete with other alliance airlines on the international routes. No Nigerian airline belongs to any of the three airline alliances (Sky Team, Star Alliance, Oneworld). There has been an enduring neglect of the country's overall transport sector. However, government reforms and its increased investment in infrastructure are beginning to take effect. The aviation sector struggles with poor management, lack of maintenance facilities in the country, inability to access funds for expansion by domestic airlines, lack of financial discipline, management indiscipline, multiple taxes and charges, and inconsistent government policies.
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- Arik Air
- Azman Air
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- Dornier Aviation Nigeria (DANA)
- Med-View Airline
- Overland Airways
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