Nigeria’s aviation industry faces a golden opportunity. A growing domestic market and the rise of the African Continental Free Trade Area (AfCFTA) promise a surge in demand for air travel.
However, this potential is hampered by a critical bottleneck – aircraft maintenance.
Currently, a staggering 70% of Nigerian aircraft are serviced abroad due to a lack of sufficient Maintenance, Repair, and Overhaul (MRO) facilities within the country.
This reliance on foreign MROs is expensive, especially considering the high exchange rate. While establishing domestic MROs appears profitable in the short term, the long-term sustainability of this growth is under question.
In the face of soaring operational costs, a challenging economic climate, and the strategic ambitions of Nigeria’s aviation sector, the theme of profit and sustainability in aircraft maintenance has become an intense discussion.
According to Dr. Alex Nwuba, President, Aircraft Owners and Pilot Association, AOPN, while speaking at the 10th Anniversary celebration of the Air Transport Quarterly magazine ATQ with the theme, “Challenges of Aircraft Maintenance; profit and sustainability in Nigeria”, Nigeria’s maintenance, repair, and overhaul (MRO) industry is at a critical juncture, where opportunities exist, but the foundation for long-term stability and profitability is shaky.
He reflects on the industry’s growth against a backdrop of financial pressures. Companies like Aero Contractors ventured into the MRO business as a cost-saving measure in response to unfavorable exchange rates that made sending aircraft abroad unsustainable.
However, as the naira continues to lose value—dropping from N600 to N1700 per dollar—the fundamental question remains: can the industry achieve profitability and sustainability in the long term?
While MROs in Nigeria have the potential to be profitable due to the high demand from an under-serviced sector, sustainability is far from guaranteed. This profitability comes, as Nwuba phrases it, as “a hospital filled with dying patients and no doctors.”
Current MRO operations are plugging gaps but without adequate preparation for future challenges.
A significant aspect of the sustainability issue is the lack of empirical data and strategic planning. Dr. Nwuba warns that simply setting up more MRO facilities without data-driven strategies may lead to unsustainable outcomes.
The Nigerian government has spoken about expanding MRO capabilities through concessions, but Nwuba argues that these initiatives often lack thorough study, risking a “just do it” approach that addresses immediate needs but may fail in the long term.
The AOPN President also highlights the importance of regulatory compliance, which is essential in aviation worldwide.
Although Nigeria has adopted international regulations, the challenge lies in localizing these standards effectively. In his view, there are critical gaps in how these regulations are implemented, with many waivers and deferred maintenance checks creating safety risks.
Dr. Nwuba advocates for stringent adherence to these regulations to ensure passenger safety, emphasizing that allowing leniency for operators without adequate resources undermines the sector’s stability.
As Nigeria’s aviation industry looks towards 2040, when Africa is projected to need 15,000 MRO professionals, the aviation analyst stresses the urgency of creating a robust pipeline for aviation talent.
Although Nigeria is not lacking in personnel, there are significant training and experience gaps. In aviation, certification is only the first step; graduates need practical, supervised training before they are employable, and there are limited pathways for such experience in Nigeria.
To bridge this gap, Dr. Nwuba proposes that the government invest directly in skill development to create a workforce that meets international standards and remains in Nigeria. Such public sector investment, he argues, would yield long-term dividends as these professionals contribute to the economy.
Beyond skill development, he warns against “unfocused growth” in the sector and notes that Nigeria’s lack of a cohesive strategy leads to a scattered approach, where airline executives make impulsive decisions to acquire new, high-maintenance aircraft without proper planning for their upkeep.
This piecemeal growth risks overextending resources without aligning the sector’s capabilities with its ambitions.
The introduction of the African Continental Free Trade Area and the Single African Air Transport Market amplifies the need for Nigeria to adopt a long-term vision.
These frameworks will allow unrestricted travel across African countries, creating new opportunities but also increased competition. If Nigeria’s aviation industry fails to adapt, it risks being overshadowed by more prepared players such as Ethiopia, Egypt, and South Africa.
Dr. Nwuba believes that Nigeria’s aviation sector should focus on gradual development, using targeted investments to build a strong foundation rather than relying on subsidies that could make businesses overly dependent on government support.
The path forward for Nigeria’s MRO industry also faces hurdles in attracting investment. With interest rates reaching as high as 40% for some companies, financing new MRO projects remains challenging.
While the government has considered concessions for larger national MROs, the analyst warns that mixed messaging could deter private investors.
The government’s dual role as a participant and regulator may create conflicts of interest, discouraging investors who see unclear boundaries between public and private ventures.
As a result, smaller MROs may struggle to scale up, leaving Nigeria dependent on other countries for major maintenance work.
Dr. Nwuba argues that Nigeria must develop clear policies and strategies to allow the sector to thrive and compete on the African stage. This includes aligning the goals of the aviation industry with Nigeria’s economic and trade policies, only then can Nigeria’s aviation sector transition from a fragmented landscape of short-term fixes to a robust, sustainable industry poised for growth.
