The dominance of foreign airlines in Nigeria's aviation market stems from the weakness of local carriers, according to Adedayo Olawuyi, chief commercial officer of United Nigeria Airlines. He told the League of Airport and Aviation Correspondents in Lagos recently that Nigerian airlines lack the strength to compete with international operators.
Carriers like Emirates, Qatar Airways, Ethiopian Airlines and Asky Airlines thrive in Nigeria because they've built expansive networks that connect passengers to numerous destinations globally. Olawuyi explained that many travellers don't fly to Dubai, Doha or Lome as final destinations but use these hubs to reach other cities across the world.
"The challenge we have in Nigerian aviation space today, where we are dominated by foreign carriers, is because of a lack of strength of the domestic carriers," he said. Ethiopian Airlines alone operates 35 to 40 flights weekly into Nigeria, he noted.
For Nigerian airlines to break this dominance, they must expand regional operations and offer direct services across West Africa. Olawuyi highlighted how foreign carriers force passengers onto inefficient routes with multiple stops.
"A passenger going to Dakar via Asky will first go to Lome, then probably Abidjan, maybe Banjul before eventually reaching Dakar," he explained. "Why can't a Nigerian carrier give them direct service from Lagos?"
However, operating regional routes presents significant commercial challenges for local airlines. Deploying large aircraft on low-traffic routes proves economically unsustainable, Olawuyi cautioned.
He said: "When you bring in a Boeing 737, a 150 or 160-seater aircraft, and deploy it on a route that has fewer than 40 passengers per day in each direction, it becomes unsustainable." Successful West African carriers have had to optimise their operations carefully, he added.
United Nigeria Airlines is pursuing a different strategy. The airline focuses on matching aircraft capacity with actual market demand rather than deploying large planes and hoping to fill seats.
"Right-size the market," Olawuyi said of the approach. "Ensure you are matching the capacity with the demand in that market."
Market stimulation also plays a crucial role in building new routes. Many routes appear unprofitable based on current data but can double their passenger numbers within a year once service begins.
Infrastructure remains the biggest obstacle facing Nigerian carriers trying to compete with foreign airlines. Olawuyi praised aviation minister Festus Keyamo but pointed to persistent problems at Lagos airports.
Transferring between domestic and international terminals can take up to two hours depending on traffic congestion. Foreign carriers also face visa requirements for passengers connecting through Nigeria, discouraging them from using Nigerian hubs.
"If an airline brings in a passenger from Douala connecting to Johannesburg, they will tell him he needs to get a visa to come into the country," Olawuyi noted. The industry is advocating for changes to address these barriers, he said.
