NIGERIA’S designation as a high-risk environment is driving up operational costs for domestic airlines, particularly in insurance and financing compared to foreign competitors.
Despite government reforms that enhance aircraft access, significant structural challenges hinder profitability. The difficulty in securing international aircraft financing at competitive rates adversely affects operational economics.
Additionally, soaring aviation fuel prices necessitate business model adjustments, while high insurance premiums pose further challenges.
Stakeholders argue that without addressing these financial burdens, Nigerian airlines will struggle to compete globally, despite improvements in operational efficiency and regulations..