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Over 100 Airlines Shut Down in Nigeria in 40 Years – Keyamo

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Minister of Aviation and Aerospace Development, Festus Keyamo, has disclosed that over 100 airlines have collapsed in Nigeria over the past 40 years.

The minister shared this information during the 10th-anniversary celebration of Air Peace, held in Lagos, highlighting the harsh conditions that local carriers face in the country.

“More than a hundred airlines have come and gone in the last 40 years,” Keyamo said.

The minister pointed out how major airlines like Concord and Bellview, once thriving in Nigeria, eventually succumbed to the pressures of the difficult market.

This statement comes as a stark reminder of the struggles Nigerian airlines face to survive, let alone thrive, in a challenging economic and operational environment.

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Keyamo explained that most Nigerian airlines rarely make it beyond ten years while remaining financially stable.

“If you look at the history of airlines in Nigeria, you’ll discover that it’s difficult for them to survive 10 years and still look healthy,” he added.

The minister expressed concern over the high failure rate of Nigerian airlines, noting that the government is now working to provide solutions to help these companies stay in business.

To support indigenous airlines, the Federal Government has secured new financing opportunities that allow Nigerian carriers to discuss aircraft leasing and financing options with global stakeholders.

Keyamo disclosed that Nigerian carriers are being invited to the Republic of Ireland, where major global lessors will present aircraft financing packages designed to support growth for Nigerian airlines.

“This forum will provide an opportunity for our airlines to meet with major players in the global aircraft financing space and explore sustainable models that work,” Keyamo said.

The minister acknowledged that the high failure rate of Nigerian airlines is worrisome and stressed that the government is committed to addressing the challenges facing the aviation industry.

He explained that access to affordable aircraft leasing and financing is a crucial step in helping Nigerian airlines avoid the “boom-and-bust” cycle.

“Why is Nigeria experiencing such a high airline mortality rate? The government is working to solve this issue, and with current interventions, we’re getting closer to a solution,” Keyamo remarked.

The aviation minister also highlighted the strategic role of Nigeria’s aviation sector, noting that the nation has immense potential as a regional air transport hub.

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Keyamo referred to a study by Boeing that shows Nigeria’s dominance in Africa’s domestic air travel, with Lagos-Abuja recognized as one of the busiest air routes on the continent.

“We have the population, we have the traffic,” he emphasized. “So it is surprising that if we have this traffic, why are the airlines not surviving?”

Keyamo attributed part of the problem to insufficient infrastructure, which makes it harder for airlines to operate profitably in the country.

Meanwhile, representatives from Boeing, including Sales Director Mr. Moore Ibekwe, confirmed Boeing’s commitment to support Nigeria’s aviation sector through advisory services and operational models.

Ibekwe explained that Boeing is focused on helping Nigerian airlines secure financing and access sustainable aircraft leasing options.

He also mentioned that Boeing is assisting Nigeria in implementing the Cape Town Convention (CTC), a global legal standard that improves access to aircraft leasing and financing for signatory countries.

“Boeing is committed to supporting Nigeria and its airlines in achieving growth,” Ibekwe stated. “By working with the government to strengthen transport infrastructure and necessary regulations, we can help make the industry sustainable.”

In his remarks at the event, Air Peace Chairman and CEO Allen Onyema reflected on the resilience of his airline, which has successfully operated for a decade.

Onyema attributed Air Peace’s success to a strong national vision and a commitment to making a difference in Nigeria’s aviation sector.

“Air Peace is a product of deep thinking and a desire to make a far-reaching impact in a country I love deeply. Profit was not the primary driving force behind its establishment,” Onyema shared.

He went on to commend President Bola Ahmed Tinubu and Minister Keyamo for the government’s recent efforts to support Nigerian carriers.

According to Onyema, the recent government interventions have opened new opportunities for airlines to access dry leasing arrangements at affordable rates.

This development marks a turning point for Nigerian airlines, who often face challenges purchasing aircraft directly due to high costs and restrictive terms.

Onyema applauded Keyamo for his proactive approach, emphasizing that the new policies will make it easier for Nigerian airlines to dry lease planes and enhance their fleets.

“Keyamo’s decision has been in the best overall industry interest, especially his recent efforts to make it easier for Nigerian carriers to lease airplanes,” Onyema said.

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