No Nigerian Airline Earned $1m Profit in 2025, Onyema Says
Nigerian airlines face rising operating costs
No Nigerian airline made $1 million in annual profit in 2025, according to Air Peace Chairman Allen Onyema, who attributed the weak profitability of domestic carriers to high operating costs, expensive borrowing and multiple taxes, fees and regulatory charges.
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Onyema made the disclosure at the 30th annual conference of the League of Airport and Aviation Correspondents (LAAC) in Lagos, where he called for a review of the financial burden imposed on airlines.
His comments highlight the financial pressures facing Nigeria’s aviation sector, with airlines required to manage high fuel costs, financing expenses and a wide range of statutory charges while maintaining operations.
High Costs Continue to Pressure Airlines
Onyema said Nigerian airlines have historically borrowed from commercial banks at interest rates as high as 33 per cent, with rates subsequently falling to around 30 per cent and 29 per cent.
Such borrowing costs can significantly increase the financial burden on airlines, particularly where operators need financing to purchase aircraft, fund maintenance or cover operating expenses.
The pressure from aviation fuel has also remained substantial. Earlier in 2026, Onyema said airlines had increasingly depended on bank loans to finance fuel purchases as Jet A1 prices rose sharply. He said the cost of operating a single flight had increased substantially as a result.
Multiple Aviation Charges Add to Financial Pressure
The Air Peace chairman also criticised the number of taxes, levies and regulatory charges imposed on airlines.
Industry operators have identified about 54 different taxes, fees and charges administered by agencies including the Nigeria Civil Aviation Authority, Federal Airports Authority of Nigeria, Nigerian Airspace Management Agency and the Nigeria Revenue Service.
Onyema argued that excessive charges could become counterproductive if they weaken airlines, increase ticket prices and reduce passenger demand.
He called for the charges to be reviewed and harmonised to improve the financial sustainability and competitiveness of Nigerian carriers.
Aviation’s Wider Economic Contribution
Onyema argued that government should view aviation as an economic catalyst rather than primarily as a source of direct tax revenue.
According to industry estimates cited by the Guardian, Nigeria’s aviation sector contributes about $2.5 billion annually to the economy and supports more than 217,000 jobs.
A stronger aviation industry can also support tourism, trade, employment and business activity by improving connectivity between major economic centres.
For Nigeria, this makes the financial health of domestic airlines relevant beyond the aviation sector itself.
Implications for Property and Infrastructure Investment
The condition of Nigeria’s aviation industry also has implications for the property market.
Airports generate demand for hotels, offices, retail outlets, logistics facilities, warehouses, parking facilities and other commercial developments. Improved passenger traffic and stronger airline operations can increase economic activity around major aviation hubs.
The Guardian reported that aviation infrastructure also has opportunities in cargo, retail, hospitality, parking, advertising and property development.
However, weak airline profitability could limit the growth of these surrounding commercial activities if carriers reduce routes, defer fleet expansion or scale back operations.
Airport Development Needs Commercial Sustainability
The debate also extends to the development and concession of airport infrastructure.
At the LAAC conference, Wale Babalakin warned that inconsistent policies, contractual uncertainty and weak investor confidence could affect long-term investment in Nigeria’s aviation infrastructure.
He argued that airport concessions should generate sustainable commercial models that provide value to government, investors and passengers rather than simply transferring operational responsibility from the public to private sector.
This is particularly important for property investors because airports can anchor large commercial ecosystems when supported by reliable transport connections, appropriate land-use planning and stable investment policies.
Outlook
Onyema’s assessment points to the broader financial pressures facing Nigeria’s airline industry, where high operating expenses, borrowing costs and multiple statutory charges continue to constrain profitability.
For the wider economy, a financially sustainable aviation sector could support investment, tourism, trade and commercial property development around major airports.
Reducing unnecessary costs while maintaining effective regulation could therefore have benefits beyond airlines, particularly if improved sector viability encourages investment in aviation infrastructure, hospitality, logistics and airport-linked real estate.
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