Rewane: Five airlines control 75% of Nigeria’s domestic air traffic
Bismarck Rewane, chief executive of Financial Derivatives Company (FDC), says only five domestic airlines account for 75 percent of air traffic out of 23 active operators in the country.
Rewane spoke on Thursday while delivering a presentation titled Aviation Financing in Nigeria: Risks, Opportunities and Prospects at the annual conference of the League of Airports and Aviation Correspondents (LAAC).
He said domestic passenger traffic fell for the second straight year to 11.5 million in 2024.
According to him, the air transport sector contracted by 0.81 percent in the first quarter of 2025 — the sixth consecutive quarterly decline.
“Nigeria has 23 active domestic airlines, however 5 airlines control 75% of traffic. The industry is fragmented,” Rewane said.
Infrastructure Gaps And Airport Viability
The FDC CEO said Nigeria’s airport network is inefficiently utilised. Out of the 32 airports in operation, only 20 were considered viable in 2024, with 92 to 96 percent of passenger traffic flowing through just four airports.
He said poor infrastructure had cost the sector $3.5 billion in revenue losses between 2020 and 2022.
Rewane compared Murtala Muhammed International Airport (MMIA) in Lagos, which processes 6.5 million passengers annually with a running cost of $1.75 billion, to Los Angeles International Airport in the United States, which handles 76.5 million passengers for $3.5 billion.
Call For Reform
Rewane called for consolidation in the aviation sector and the creation of a competitive hub system centred in Lagos and Abuja.
“We need very strong and effective regulation for safety; concessions and PPPs should be prioritised for airport upgrades to aid national fiscal sustainability and avoid inefficient operations.
“There should be investment in local maintenance, repair and overhaul hubs,” he added.
He urged the federal government to focus on policy and regulation rather than running airlines or building airports, stressing that policy consistency is key to rebuilding trust with global investors and attracting international aviation capital.
