Foreign airlines currently dominate Nigeria's international aviation market, accounting for about 90 per cent of inbound and outbound passenger traffic, industry stakeholders have said.
LEADERSHIP reports that Nigeria recorded 4.85 million international passengers in 2025, with Europe emerging as the country's largest international market, accounting for about 38 per cent of departing international passengers.
Regional intra-African travel accounted for approximately 23 per cent of passenger flows, while direct transatlantic flights represented about 18 per cent of the outbound market.
Speaking recently, the minister of Aviation and Aerospace Development, Festus Keyamo, disclosed that foreign carriers transport the overwhelming majority of passengers travelling between Nigeria and the rest of the world.
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"I want you to think about this. 90 per cent, 95 per cent of our passengers flying out of this country to other parts of the world are by foreign Airlines," he stated.
Commenting on the development, former commandant of the Murtala Muhammed Airport, Capt. John Ojikutu (rtd) expressed concern over the continued dominance of foreign airlines in Nigeria's international aviation market, warning that the country's weak presence on international routes is leaving a significant portion of the sector in foreign hands.
Ojikutu stated that foreign carriers currently account for the bulk of international passenger traffic and contribute substantially to revenues generated by aviation agencies, particularly the Federal Airports Authority of Nigeria (FAAN).
According to him, "Foreign airlines contribute nothing less than 80 per cent of the reported earnings of FAAN annually through their operations on international routes."
He noted that no fewer than 30 foreign airlines operate daily into Nigeria on more than 90 Bilateral Air Service Agreement (BASA) routes, while Nigerian airlines maintain only a limited presence outside the West African sub-region.
"Outside the West African region, Nigerian airlines are not operating altogether on up to five continental and intercontinental routes," Ojikutu said.
The retired pilot argued that the imbalance underscores the need for deliberate policies to strengthen indigenous participation in international air transport.
To address the challenge, Ojikutu advocated developing two national flag carriers from existing domestic airlines, one dedicated to regional and continental operations and the other to intercontinental services.
"What we need is to develop two flag carriers from the existing airlines. One should serve regional and continental routes, while the other should operate on intercontinental routes," he said.
He further stressed that merely designating private airlines as flag carriers without adequate national ownership and support would not guarantee success in foreign markets.
"If we fail to do that, beyond the shouting from the window of calling some airlines' flag carriers, they will be received from the windows of the countries they fly to and not through the door," he stated.
Describing flag carriers as national ambassadors, Ojikutu maintained that such airlines should not be wholly privately owned, given their strategic role in representing Nigeria and utilising the country's BASA rights.
"Flag carriers are like our ambassadors representing the country, and the BASA routes they operate on are part of our national commonwealth," he said.
He proposed an ownership structure in which private investors would hold a maximum of 50 per cent equity, while the remaining shares would be split between the public and government.
According to him, "Beneficiaries of flag carrier status should not own more than 50 per cent. The remaining shares should go to the public and government, with 30 per cent allotted to the public and 20 per cent shared among the six geopolitical zones and the Federal Government."
Ojikutu warned that failure to adopt a sustainable national carrier model would continue to expose Nigeria's aviation market to foreign dominance.
"Anything different from this will continue to open our market to foreign airlines," he warned.
Also speaking, aviation expert and former pilot, Capt. Mohammed Gbadamasi said Nigerian airlines must strengthen their operational and financial capacities to compete effectively with established foreign carriers.
Gbadamasi noted that foreign airlines have maintained a strong foothold in Nigeria because of their longstanding experience, robust structures, financial strength and operational reliability.
According to him, most of the major foreign carriers operating in Nigeria have spent decades building resilient business models capable of withstanding economic fluctuations and market uncertainties.
"These foreign airlines are old in the airline business. They have established the structures needed for long-term and seamless performance irrespective of the difficulties arising from market fluctuations and other environmental challenges," he said.
The aviation expert observed that only a few Nigerian airlines currently operate international services, a situation he said limits the country's competitiveness in the global aviation market.
"How many of the country's airlines operate international flights? I know only one major operator. The reality is that local airlines still have a long way to go," he stated.
Gbadamasi stressed that the financial muscle of foreign airlines enables them to sustain operations under varying global economic conditions while maintaining service standards.
"They have the financial strength that can sustain them irrespective of the environmental situation anywhere in the world. They also possess sufficient aircraft to operate across different routes globally," he said.
He added that the reliability and consistency demonstrated by foreign airlines over the years have helped them earn passengers' confidence.
"The major foreign airlines have established themselves as reliable and dependable. They have built confidence in passengers through years of consistent service delivery," Gbadamasi noted.
He argued that no Nigerian airline currently possesses the structural and financial capacity required to compete effectively with leading international carriers.
"No airline in the country is capable of matching them structurally and financially at the moment," he said.
According to Gbadamasi, international airline operations are highly capital-intensive, requiring significant investments in infrastructure, personnel and support systems in foreign destinations.
"It is capital-intensive to operate international flights because of the structures on the ground needed in foreign countries for such operations," he explained.
He also pointed to persistent flight delays and cancellations by domestic airlines as factors undermining passenger confidence.
"The biggest airline in the country has disappointed passengers many times due to cancellations and prolonged delays. The lack of sufficient serviceable aircraft among many operators is responsible for these disruptions," he said.
Gbadamasi maintained that it would take years for Nigerian airlines to attain the level of operational efficiency and reliability currently enjoyed by foreign carriers.
"It took Nigeria Airways years to establish itself as a reliable airline. Nigerian carriers will equally require time, investment and commitment to catch up with foreign airlines," he added.
On his part, aviation expert Frank Oruye called for reforms in the allocation of BASA routes, arguing that a more transparent and competitive process is necessary to strengthen indigenous airlines and enhance their participation in international aviation.
Oruye said every international route operated by foreign airlines into and out of Nigeria is governed by BASA agreements signed between Nigeria and the respective foreign governments.
According to him, BASA arrangements provide for each country to designate flag carriers, determine which airports to serve, and specify flight frequencies on agreed routes.
"Every route flown by foreign airlines into or out of Nigeria is governed by a Bilateral Air Services Agreement entered into by Nigeria and the foreign governments," he said.
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He explained that under such agreements, countries are expected to designate national carriers to operate on the approved routes.
"BASA allows each nation to designate flag carriers that will operate the routes, the airports to be served and the frequency of flights. Where a country is unable to designate a flag carrier, the foreign operator may concede a number of seats per flight as compensation," Oruye stated.
The aviation expert recalled that during the administration of former Aviation Minister, Hadi Sirika, Nigeria was unable to designate local operators for some lucrative international routes, including London Heathrow and the United States market.
"In the days of Nigeria Air, the Minister Hadi Sirika failed to designate any Nigerian operator to serve London Heathrow and the lucrative United States market," he said.
Oruye noted that while Air Peace eventually secured access to the London Heathrow route under the current administration, Nigerian participation in the North American market remains limited.
"Air Peace tried its best but was denied. The current administration has made Heathrow possible for Air Peace, while the USA and Canada markets have been awarded to United Nigeria, which is yet to fully establish operations at that level," he added.
He stressed that the Federal Government bears the responsibility of negotiating BASA agreements and designating flag carriers, but insisted that the process could be improved through competitive bidding.
"The Federal Government is responsible for negotiating BASA agreements and appointing flag carriers. However, to get the best out of Nigerian airlines, a process of tendering in competition for the routes would have been more transparent and would produce better results," Oruye said.
According to him, introducing a transparent and competitive route allocation framework would not only ensure fairness but also encourage local airlines to improve their operational standards and capacity in order to compete effectively on international routes.
