…Advocates Airline Mergers, Efficient Airports, and Stable Policies
Renowned economist and CEO of Financial Derivatives Company, Bismarck Rewane, has called for urgent and far-reaching reforms to rescue Nigeria’s aviation industry from what he described as “deep structural distress,” warning that the sector is currently losing an estimated $3.5 billion annually.
Speaking during a panel session at the 29th League of Airport and Aviation Correspondents (LAAC) Conference held in Lagos yesterday, themed “Aviation Financing in Nigeria: Risks, Opportunities and Prospects”, Rewane stressed that without strategic policy shifts, Nigeria risks further economic setbacks from one of its most critical sectors.
“The Nigerian aviation industry is facing unsustainable losses about $3.5 billion annually. If this continues unchecked, the country will face bigger economic consequences,” Rewane said.
The economist highlighted multiple challenges weighing down the sector, including overcapacity from too many small and undercapitalised airlines, inefficient airport operations, and high operating costs exacerbated by inadequate infrastructure and policy inconsistencies.
He urged the Federal Government to champion airline consolidation as a major reform step, noting that smaller carriers struggle to compete or scale up in a capital-intensive industry. “In aviation, size matters. We need fewer but stronger airlines that can operate efficiently, maintain modern fleets, and compete internationally,” he added.
Rewane also underscored the importance of improving airport management efficiency, attracting foreign direct investment, and creating an enabling environment for private sector participation in infrastructure development. He warned that without targeted investments in runways, terminals, and technology, Nigeria’s airports would continue to lag behind regional and global standards.
According to him, aviation should be seen as a critical driver of trade, tourism, and economic growth, not merely as a service sector. “A well-run aviation industry boosts exports, brings in tourists, facilitates trade, and creates thousands of jobs,” he said.
The LAAC Conference brought together aviation stakeholders, government officials, airline executives, and financial experts to explore funding models and reform opportunities for Nigeria’s aviation sector. Rewane’s presentation drew attention for its candid assessment and bold policy recommendations, setting the tone for more pragmatic discourse on the industry’s future.
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