Airlines are increasingly turning to domestic options for aircraft maintenance as the scarcity of foreign exchange in Nigeria renders overseas repairs nearly unfeasible.

Ado Sanusi, the managing director and CEO of Aero Contractors of Nigeria Limited and Aero MRO, one of Nigeria's largest maintenance facilities, stated, "Since the unification of the foreign exchange, we have observed a rise in the number of airlines utilizing our facility for C-checks on their aircraft. Prior to the unification of exchange rates, airline operators preferred not to approach us, as they could obtain dollars from the Central Bank of Nigeria through the FX windows."

Sanusi noted that the company’s maintenance hangars are currently at full capacity, necessitating the use of Air Force hangars to accommodate additional aircraft awaiting maintenance. Previously, airlines relied on the FX windows offered by the Central Bank of Nigeria (CBN) to acquire dollars at favorable rates for maintenance and other operational costs.

However, the unification of the exchange rate has diminished the benefits associated with these windows, compelling airlines to seek services from local Maintenance, Repair, and Overhaul (MRO) facilities. Notable local maintenance providers include 7 Star Global Hangar Limited, ExecuJet Aviation Group AG, Sky Jet Aviation Services, Aero MRO, Arik Air Limited, and JetMS (Avia Solutions Group).

While airlines had previously contended that local facilities lacked the capacity to perform comprehensive heavy maintenance (C-checks and D-checks) for all commercial aircraft in Nigeria, the current scarcity of foreign exchange and the shortage of fleet availability have altered this perspective.

“C-checks are classified into 1C, 2C, 4C and 6C. When you open up the aircraft, you could see corrosion or cracks in the airplane. Airplanes are like balloons, and when you inflate them, you get to see more than you budgeted for.

“What we do when airplanes are brought to us is that we give operators a price for routine checks. But when we open the aircraft and find corrosion or more cracks, it could cost the airline more than they budgeted for routine checks,” the Aero MD explained.

As per the provided information, the routine 1 C-check maintenance cost for a Boeing 737 aircraft ranges from $180,000 to $250,000. A 2 C-check maintenance cost for the same aircraft can range between $250,000 and $300,000, while a 4 C-check maintenance cost can range between $500,000 and $600,000.

It Is important to note that non-routine aircraft maintenance costs can be significantly higher, potentially reaching up to $1 million. These costs primarily cover manpower rates and do not include the cost of spare parts.

“In Nigeria, the manpower rates are lower. For airlines to carry out checks outside the country, they have to pay for fuel to ferry the aircraft, navigational charges, crew and accommodation for representatives in the country.

“We have the capacity and the certification to carry out checks on Boeing 737s, Dash 8, Q400 and Bombardier,” Sanusi noted.

Information sourced from the Nigeria Civil Aviation Authority (NCAA) indicates that there are 13 domestic airlines operating a combined fleet of 91 aircraft, which includes those currently undergoing maintenance.

The types of aircraft in operation consist of 34 Boeing 737s, one Dash 8-300, five Embraer 195s, eight Embraer 145s, one Dornier 328, three Boeing 777s, four Bombardier Q400s, one Airbus A340, four MD-82 and MD-83 models, three ATR 72s, five CRJ 900s, one Airbus A220, and two Boeing 747s.

Previously, when the naira-dollar exchange rate was N400/$, airlines incurred costs ranging from N200 million to N400 million for routine C-checks on a Boeing 737.

However, with the current exchange rate exceeding N1500/$, the expenses for conducting a C-check on a single aircraft have escalated to between N794 million and N1.5 billion.

“As I speak to you, we are overwhelmed. Right now, we have four aircraft on the jack, which is the space the two hangars can take. We have several other aircraft on queue awaiting maintenance. We are even using a third hanger belonging to someone else in Abuja to do heavy maintenance right now in Abuja as approved by the Nigeria Civil Aviation Authority NCAA,” Isaac Balami, founder and chief executive officer of 7 Star Global Hangar, a major maintenance facility in Nigeria said.

“It is a $1 billion industry. Every year, what maintenance facilities spend to fix aircraft from Nigeria overseas is over $1 billion. These are aircraft from the presidential air fleet, the police air wing, private jet operators and commercial airlines.

“Aside USA and China, the third country in the world with the highest number of private jet owners is Nigeria. So, there are so many opportunities. We are currently struggling to see how we can meet up. We have secured land from the Federal Airports Authority of Nigeria (FAAN). We have finished the design and our partners from Europe will be coming to build the hangar for us,” the 7 Stars Global Hangar boss said.

As per his estimation, the hangar will accommodate approximately 8 Boeing 737s. It is important to note that even if other local MROs were to establish similar capacities, the industry as a whole would still be unable to satisfy even half of the current demand.

Balami suggested that the cost of fuel for a single aircraft to travel to the UK, Europe, Ethiopia, Dubai, America, and Asia can range from $65,000 to $100,000, excluding navigational charges, landing fees, transportation, crew visa fees, and hotel accommodations for a period of two to three months.

He emphasized that If aircraft maintenance is performed locally, it could potentially generate approximately $1 billion in revenue for Nigerian businesses.

Sheri Ayuba Kyari, an esteemed aircraft engineer and former president of the National Association of Aircraft Pilots and Engineers (NAAPE), shared his insights with BusinessDay regarding the notable increase in local aircraft maintenance activities.

Kyari highlighted that C-checks, a crucial maintenance procedure, are now being conducted in Nigeria for certain aircraft, capitalizing on the advantage of lower manpower costs. Previously, airlines favored overseas maintenance due to the opportunity to procure dollars at favorable rates from the Central Bank of Nigeria (CBN).

However, with the unification of dollar exchange rates, Mr. Kyari emphasized the establishment of an in-house maintenance facility that has successfully executed two C-checks on Dana Air’s MD aircraft and is currently servicing Azman’s B737 aircraft.

“The 7 Star and Aero MRO are in the country and their rates are not the same. The factors that will culminate into the total cost of maintenance are not going to be the same. Some may use more funds and hands to get the aircraft out in a shorter time. Another may use minimal hands and maximum time,” he said.

Captain Ibrahim Mshelia, the owner of West Link Airlines Nigeria and Mish Aviation Flying School, expressed concerns regarding the scarcity of Maintenance, Repair, and Overhaul (MRO) facilities in the country, despite the presence of local maintenance firms.

“Every hour you fly, there is a maintenance cost required. Keep it somewhere, don’t spend it. I did it. When the maintenance is due, the money is there to pay for it.

“There was no time I took my airplane for maintenance and not pay to bring it back except something went wrong with the aircraft and I needed insurance to cover the costs,” he said.

The captain emphasized the necessity for airlines to obtain favorable exchange rates for dollars to facilitate their daily operations.

An increasing number of indigenous companies are exploring investment opportunities in the Maintenance, Repair, and Overhaul (MRO) sector, recognizing the potential of an untapped market.

For instance, Ibom Air, a Nigerian carrier, aims to position itself as a prominent MRO provider within the African continent, emulating the success of EgyptAir, Ethiopian Airlines, and Kenya Airways.

Recently, Ibom Air has collaborated with Airbus Consulting to develop a comprehensive maintenance strategy for the upcoming six to eight years, encompassing plans for the full scope of A220 maintenance activities.