Speaking at the forum themed “Financing Aviation in Nigeria: Risks, Opportunities and Prospects,” the Chief Executive Officer of Financial Derivatives Company, Mr. Bismarck Rewane, argued that many state-led aviation projects are economically unviable and represent misplaced priorities.
According to him, governments should redirect scarce resources toward providing essential social amenities for citizens while leaving airline operations and airport management largely to the private sector through concessions and public-private partnerships.
“State governments should focus on things where they have comparative advantage. Just as Fareed Zakaria said: first, stop doing dumb things. Second, start doing smart things. Finally, start doing modern things,” Rewane stated. “Concessions and public-private partnerships should be prioritised. You do not need to spend on an airport if you have a concession.”
Call for Industry Consolidation
Rewane also stressed that Nigeria’s aviation industry requires consolidation to ensure long-term viability. Drawing parallels with the banking, insurance, and petroleum downstream sectors, he noted that mergers and shakeouts are natural processes that strengthen industries.
“Industries in difficulty should consolidate. Consolidation means they merge, become more efficient, more competitive, and bring down average costs. When average costs come down, profit margins expand and the industry begins to do better,” he explained.
A Broader Perspective
His remarks echo recent concerns raised by other industry stakeholders about the wave of state-owned airline projects. Aviation consultant and CEO of Belujane Konzult, Mr. Chris Aligbe, had earlier argued that such initiatives often arise from gaps left by Nigeria’s underperforming airline sub-sector.
Using Cross River’s Cally Air—yet to secure an Air Operator Certificate (AOC)—as an example, Aligbe suggested that states are stepping in to fill voids created by the absence of strong national or regional carriers.
“If we had formidable airlines, they [states] would not be thinking about such,” Aligbe said. “There is nothing to attract passengers to Calabar beyond the carnival. Cross River ceased to be a major destination after Donald Duke left office. Tinapa was the attraction then, and once that declined, airlines cut down operations into Calabar. That is what the state government is trying to address.”
The Bigger Picture
The debate underscores a growing tension between the political drive for state-led aviation projects and the economic realities of sustaining them. While governments see airlines and airports as symbols of development and prestige, experts caution that such investments often drain public finances without delivering long-term value.
Rewane’s call for smarter allocation of resources and a stronger embrace of public-private models adds to the push for a more sustainable aviation industry—one where efficiency, consolidation, and private sector expertise determine survival.