Speaking on Wednesday at the Aircraft Acquisition and Investment Summit in Lagos, Okonjo-Iweala stressed that improving aviation infrastructure is essential for Nigeria’s ambition to move up the global value chain. She described modern, efficient airports as a “prerequisite” rather than a luxury for any nation seeking competitiveness in the global aviation sector.
She urged authorities to invest broadly in the aviation ecosystem, including the acquisition of new aircraft and the development of a strong maintenance culture, noting that these efforts must go hand in hand with upgraded airport facilities.
Call for Private Sector Participation
Okonjo-Iweala emphasised that government alone cannot shoulder the financial burden of modernising the aviation sector. She advocated for increased public-private partnerships, encouraging policymakers to create frameworks that would attract private capital.
According to her, the government’s role should focus on providing regulatory certainty and long-term concession structures, while the private sector contributes funding, operational expertise, and efficiency driven by commercial incentives. She noted that such models have delivered growth in other parts of the world.
Concerns Over Rising Costs
The WTO chief also raised concerns about escalating operational costs in Nigeria’s aviation industry, calling for a review of fuel prices, taxes, levies, and airport charges. She warned that these rising costs could undermine airline profitability and discourage investment.
Recent data highlights the severity of the challenge, with aviation fuel prices surging sharply in recent months. The cost of jet fuel has risen from about N900 per litre in January to over N2,500 per litre, significantly increasing the financial burden on airlines, where fuel alone accounts for roughly 40 percent of operating expenses.
She further urged the government to maintain a fair and competitive tax regime, promote market liberalisation through reciprocal international agreements, and collaborate with other African nations to ease restrictions that limit airline operations across the continent.
Aviation as an Economic Driver
Okonjo-Iweala underscored the importance of viewing aviation as a strategic economic enabler rather than merely a source of government revenue. She noted that Nigeria’s aviation sector already contributes between $1.7 billion and $2.5 billion to the country’s GDP and has shown growth in recent years through the emergence of private airlines and infrastructure development.
While acknowledging improvements in safety standards over the past two decades, she called for further progress, including fleet expansion and upgrades by existing airlines.
Despite its potential, the sector continues to face persistent challenges such as high operating costs, infrastructure deficits, and volatile fuel prices—issues she said must be addressed to unlock its full contribution to national economic growth.