Stakeholders in Nigeria’s aviation industry have raised alarm over the rising cost of aircraft financing, warning that without access to cheaper funding, many domestic airlines may soon struggle to remain competitive.
Speaking under the umbrella of the Aircraft Owners and Pilots Association of Nigeria (AOPAN), the group called on the Federal Government and financial institutions to create low-interest credit facilities and sector-friendly policies to prevent the collapse of local carriers.
According to AOPAN’s President, Alex Nwuba, the high-interest rates charged by Nigerian banks make it nearly impossible for airlines to acquire or maintain aircraft profitably, especially when compared to competitors in other African and global markets.
“If we continue on this path, Nigerian airlines will remain at a disadvantage — unable to expand routes or modernize their fleets,” Nwuba warned.
He emphasized that aviation remains a critical driver of economic growth, tourism, and job creation, and must be treated as a strategic national asset deserving special financial consideration.
Industry experts say without policy reforms and cheaper aviation funding, Nigeria’s airlines risk being pushed out of regional competition, allowing foreign carriers to dominate the market.