The aircraft, which were sent abroad for routine maintenance, have reportedly been unable to return due to the airlines’ inability to access foreign exchange (forex) at the time the payments were due, a problem exacerbated by delays in disbursement through the Central Bank of Nigeria (CBN).
Grounded Abroad: The Numbers and the Impact
According to industry sources, Air Peace, Nigeria’s largest carrier, has about 15 aircraft stuck at maintenance facilities abroad. The airline had sought $14 million over two years ago—during the administration of former President Muhammadu Buhari—to bring back the planes after borrowing at a steep 35% interest rate from Nigerian banks. Though maintenance fees were reportedly paid, the funds to cover other charges, including parking and demurrage, never materialized.
Arik Air also has around six aircraft yet to return from overseas facilities, with indications that these too may be forfeited. Similarly, United Nigeria Airlines is said to have at least two aircraft overseas, after also bidding for forex around the same time as Air Peace—with no allocation granted.
Scarcity of Aircraft, Soaring Ticket Prices
The direct consequence of this aviation impasse is a shrinking domestic fleet. With fewer aircraft in operation—now reportedly fewer than 35—the industry is struggling to meet demand, leading to high ticket prices and limited connectivity across Nigeria.
Captain Ado Sanusi, Managing Director and CEO of Aero Contractors, expressed pessimism about the return of the stranded aircraft.
“Because the money was not made available to the airlines then, I doubt if they will be able to get the aircraft back,” Sanusi said. “I can imagine how much parking alone would have accumulated on those aircraft. So, the facilities will sell them to recover their money. That is probably what will happen.”
Turn to Wet Leasing Amid Industry Constraints
With their aircraft grounded, many Nigerian airlines have been forced into wet leasing arrangements, also known as ACMI—Aircraft, Crew, Maintenance, and Insurance. These agreements, while keeping airlines operational, drain foreign exchange reserves and often result in low profit margins for the Nigerian operators.
This shift was further complicated by the past blacklisting of Nigerian carriers, which restricted their leasing options. However, due to recent efforts by the Minister of Aviation and Aerospace Development, the blacklisting was lifted late last year.
Even so, wet leasing remains a costly alternative, one that Sanusi believes is unsustainable in the long run.
“It is not good for our economy. It is not good for the country,” he said. “So much foreign exchange is taken out of the country and even the airlines are not making much money.”
A Call for Policy Reform and Local Leasing
To address the crisis, Sanusi urged the federal government to establish a domestic leasing company in collaboration with international banks and financiers. Such an initiative, he argued, should fall under the supervision of the Ministry of Finance or the aviation ministry.
“Government should have a deliberate policy in ensuring that a leasing company is domesticated in the country,” Sanusi advised. “This is to ensure that leasing can be done locally, reducing capital flight and increasing fleet availability.”
He added that government intervention is not unique to Nigeria. In the United States, the government provided credit support to airlines post-COVID-19, while Ethiopia continues to fund and support Ethiopian Airlines as a national asset.
Aviation as an Economic Driver
Sanusi concluded by reiterating the strategic importance of aviation to national development.
“The aviation industry is a catalyst of any nation’s economy and therefore cannot be sidelined by government. For it to thrive, there has to be structured intervention and policy support.”
With airlines hemorrhaging capacity and costs mounting, stakeholders are calling for swift government action to prevent a deeper crisis in Nigeria’s aviation sector.
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