Overview

 Total Market Size for Aviation, Unit: USD millions

Total Market Size = (Total Local Production + Total Imports) – (Total Exports) 
Data Sources:  Estimates are based on qualitative research done with Industry contacts and Nigeria Civil Aviation Authority (NCAA), UN COMTRADE and Operators in aviation sector
Imports from U.S.: U.S. Census Bureau 
Nigeria National Bureau of Statistics 
* Primarily re-export of aviation-related equipment (e.g., plane parts, helicopter and helicopter parts) to other countries.

The Nigerian aviation sector continues to evolve as a key transportation and economic hub within West Africa, though recent trends show both growth and challenges. In 2023, Nigeria’s airports recorded a slight decline in passenger numbers, with 15.89 million travellers compared to 16.17 million in 2022. This decline may be attributed in part to the “Japa” trend, a phenomenon where Nigerians emigrate in large numbers, resulting in 2.04 million outbound passengers and 1.8 million inbound travellers in 2023. Nevertheless, international airlines maintain a strong presence, with 27 carriers providing services in 2022 and Nigerian airports actively facilitating global connections.

A notable feature of Nigeria’s aviation landscape is its reliance on U.S.-manufactured aircraft, including various Boeing models such as the 737 and 777 series and the Super Tucano A-29s, which play a critical role in the Nigerian military’s counter-insurgency efforts. The supply chain for these aircraft includes both new and used planes sourced directly from manufacturers and secondary dealers, underscoring a diversified approach to fleet management.

The regulatory framework in Nigeria adheres closely to the International Civil Aviation Organization (ICAO) and International Air Transport Association (IATA) standards, enhancing compatibility with U.S.-origin equipment that meets these global safety protocols. This alignment provides a competitive edge to U.S. manufacturers and suppliers, whose products already meet Nigeria’s stringent compliance requirements.

Nigeria’s aspiration for a national airline, Nigeria Air, experienced a setback when the Federal High Court in Lagos nullified the project’s agreements with Ethiopian Airlines in August 2024, effectively halting the initiative. This decision has renewed focus on Nigeria’s existing aviation operations and the potential for future investments in domestic airlines.

The U.S.-Nigeria Air Transport Agreement, which has been provisionally applied since 2000, entered into force on May 13, 2024. This bilateral agreement establishes a modern civil aviation relationship with Nigeria consistent with U.S. Open Skies international aviation policy and with commitments to high standards of aviation safety and security. This agreement includes provisions that allow for unrestricted capacity and frequency of services, open route rights, a liber charter regime, and open code-sharing opportunities.

Opportunities

The Nigerian aviation sector presents diverse and promising opportunities for U.S. companies, particularly given the strategic infrastructure investments and regulatory enhancements outlined in the 2024 budget and the National Civil Aviation Policy (NCAP). Nigeria’s 2024 budget earmarks approximately $14.1 million specifically for airport rehabilitation and modernization efforts. This investment targets runway repairs, terminal upgrades, and air navigational equipment across major airports, showcasing a government-led drive to improve facilities. The NCAP encourages PPP models, such as Build-Operate-Transfer (BOT) and Design-Build-Finance-Operate (DBFO), allowing U.S. companies to participate in long-term infrastructure projects with secured revenue channels. This structured approach provides stability and potential for sustainable returns on investment for firms interested in expanding Nigeria’s airport and airspace capabilities. Nigeria’s commitment to the Single African Air Transport Market (SAATM) and th

With regulatory oversight from the Nigerian Civil Aviation Authority (NCAA) and the Nigerian Safety Investigation Bureau (NSIB), Nigeria adheres to safety standards consistent with international best practices. This environment is favourable for U.S. companies specializing in aviation safety technology, training, and security solutions. The country’s commitment to upgrading control towers, voice communication systems, and surveillance enhances operational readiness across several airports, presenting U.S. firms with opportunities to offer advanced safety and communication systems that improve Nigeria’s airspace safety.

The NCAP promotes establishing a strong aviation support ecosystem, including Maintenance, Repair, and Overhaul (MRO) facilities, leasing companies, and aviation training institutions. Currently, Nigeria faces a high demand for domestic MRO facilities to serve its own and neighbouring countries’ fleets. U.S. companies with MRO expertise can meet this demand by establishing local facilities, reducing reliance on foreign maintenance, and catering to a growing market. Furthermore, setting up training institutions would contribute significantly to the human capital development in Nigeria’s aviation sector, offering technical skill-building and industry-specific training for professionals.

The Ministry of Aviation and Aerospace Development has received a robust budgetary allocation exceeding $38.5 billion. This funding supports various projects, including the establishment of an Aerospace University in Abuja, upgrades to Murtala Mohammed Airport in Lagos, and nationwide safety and security enhancements. Additionally, significant allocations for the Nigerian Meteorological Agency and the Nigerian College of Aviation Technology underscore the government’s commitment to building a resilient, well-trained, and technologically advanced aviation infrastructure. U.S. educational institutions and technology firms could partner in these initiatives, supplying expertise, resources, or training materials to support Nigeria’s aviation educational and operational advancements.

Overall, Nigeria’s aviation sector offers U.S. companies extensive opportunities to contribute to infrastructure, connectivity, safety, training, and technological innovation. With strategic alignment, U.S. investors can play a pivotal role in realizing Nigeria’s ambitions to become an aviation leader in Africa, reaping benefits from a market that is progressively aligning with international standards and demands.

Leading Subsectors

A key subsector within aviation is the provision of services to airline operators, such as training, maintenance services, and on-ground handling services.

Aircraft training and maintenance services, including flight simulator training and personnel development, are essential components of the aviation industry. Nigeria, recognizing the potential of its aviation sector, has shown keen interest in attracting international companies to establish Maintenance, Repair, and Overhaul (MRO) facilities in strategic locations like Lagos and Abuja. Additionally, the increasing demand for advanced ground handling equipment, such as cargo and passenger scanners, is driving the need for modernization at Nigerian airports.

As of 2023, the global market for passenger and cargo security scanners has grown significantly since the 2019 estimate of $7.7 billion. Current estimates place the market at around $11.4 billion, with expectations for continued growth driven by increased global travel, security requirements, and investments in advanced scanning technologies, such as computed tomography (CT) and explosive trace detection systems.

Nigeria’s aviation sector is poised for significant growth. Key areas like training, aircraft maintenance, and ground handling services offer promising opportunities. The government’s focus on attracting international companies to establish MRO facilities in major cities like Lagos and Abuja is a step towards building a self-sustaining aviation infrastructure.

For more information, e-mail: Banksharon Nwaneri., U.S. Commercial Service, U.S. Consulate General, Lagos, Nigeria at banksharon.nwaneri@trade.gov