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Nigeria’s aviation industry is seeing an increase in activities despite rising costs, weak infrastructure and pressure from inflation, industry leaders say, as reforms in cargo operations and strong travel demand offer cautious optimism.
This is according to Bankole Bernard, Group Managing Director of Finchglow Holdings, who said the sector has benefited from broader economic changes, even as businesses struggle with higher operating costs and infrastructure gaps.
“There has been a lot of change in the economy,” Bernard said in a press briefing. “The macro environment affects us at the micro level. We feel the pain first, but we also feel the benefits.”
Finchglow Holdings, which operates six travel and aviation businesses, recorded growth in bookings over the past year, Bernard said, despite public complaints over expensive airfares.
Read also: Demand for holidays, business travel see African airlines’ demand grow by 7.3%
“People are still flying,” he continued. “Demand remains strong, even with rising ticket prices.”
Industry data shows why prices remain high. Bernard said about 45 percent of the value of an airline ticket in Nigeria goes to taxes and charges, leaving airlines with roughly 55 percent of the fare.
“If a ticket costs ₦1,000, only about ₦550 goes to the airline,” he said.
The International Air Transport Association (IATA) ranks Nigeria among Africa’s highest aviation tax environments. Airfares rose by over 50 percent between 2022 and 2024, driven by inflation, foreign exchange pressure and operating costs.
Nigeria also operates 22 federally owned airports, many of which generate limited revenue. This forces authorities to rely on user charges to cover costs, industry executives say.
Detty December: boom and backlash
While aviation demand remains strong, Nigeria’s tourism surge during Detty December has exposed structural weaknesses, according to Gbenga Onitilo, Managing Director of Travelden, a Finchglow subsidiary.
He said diaspora spending boosted cities like Lagos and Calabar in 2024, but the country was unprepared for the influx.
“Prices went out of control in 2025,” Onitilo said. “Some hotels and apartments tripled or even increased rates six times.”
He said show tickets and table prices reached levels that damaged Nigeria’s tourism image, pushing visitors to alternatives like Ghana and Rwanda.
Infrastructure and data gaps
Despite progress, Bernard said poor infrastructure remains a major challenge. He singled out the absence of free Wi-Fi at international airports as a missed opportunity.
“Every major airport globally offers this,” he said. “It improves passenger experience and creates value through data. The airport is the first point of contact. If the experience is poor, the country suffers.”
He also called for a centralised aviation data system, noting past inconsistencies where agencies and airlines reported conflicting passenger figures.
“Data helps planning, pricing and policy,” he said. “Without it, decisions are weak.”
Read also: Maximising Detty December to strengthen Nigeria’s tourism and aviation sector
Training, expansion and technology
Finchglow’s aviation training school recorded increased interest from foreign students this year, Bernard said. The company plans to expand courses and develop a flight training school in southwest Nigeria, in partnership with local and foreign firms.
Nigeria currently has only two major flight schools, and many families send students abroad due to safety concerns, industry leaders say. Bernard said local capacity would help retain talent and foreign exchange.
On technology, Bernard said Finchglow is increasing investment in digital tools and artificial intelligence, but warned regulators must modernise too.
“You can’t talk about AI when regulators are struggling to use computers,” he said. “Automation must come first.”
Cargo reforms and new structure
Bernard was recently appointed Chairman of the Cargo Accounts Settlement System (CASS) Nigeria Local Consultative Council, a platform designed to bring structure and transparency to the air cargo sector.
CASS operates like the Billing and Settlement Plan (BSP) used for passenger ticketing. Under the system, airlines transact only with IATA-accredited cargo agents, reducing fraud and informal practices.
“The passenger sector is more organised today because of structure,” Bernar said. “We want to bring the same discipline to cargo.”
Nine airlines are already on the CASS platform, with more expected to join. Bernard said major international carriers, including Turkish Airlines, are showing interest.
“We expect strong growth in cargo revenues,” he said. “It won’t happen overnight, but the clean-up process has started.”
He added that structured cargo systems would encourage compliance, improve safety standards and draw more airlines into Nigeria’s cargo market.
Read also: Aviation sector short of air traffic controllers – Keyamo
Looking ahead
The GMD said Nigeria’s aviation sector still holds major potential, especially in cargo, training and regional expansion. “The opportunity is real,” he said.
“But we must reduce unnecessary costs, use data properly and invest in structure.”
As Finchglow explores expansion into West Africa, Bernard said the company remains focused on professionalism, integrity and long-term impact.
