August 08, (THEWILL) — Managing Director of Financial Derivatives Company, Bismarck Rewane, says only four of Nigeria’s 32 airports handle between 92 and 96 per cent of the country’s total passenger traffic.
Speaking at the 2025 League of Airports and Aviation Correspondents Conference in Lagos on August 7, Rewane disclosed that domestic passenger volume dropped to 11.5 million in 2024 — the second consecutive year of decline.
He attributed the inefficiency to politicisation and poor project viability, saying, “We are duplicating infrastructure while traffic shrinks. The truth is, aviation sector financing in Nigeria is being driven by prestige, not performance.”
According to him, about ₦3.5bn in lost revenue and continued traffic decline have exposed deep cracks in aviation financing.
He cited data showing that from 2020 to 2022, the industry lost billions due to poor infrastructure and a fragmented operational model.
Rewane revealed that the Murtala Muhammed International Airport, Lagos, processed 6.5 million passengers in 2024 with an estimated $1.75bn investment.
By comparison, Dubai International handled 92 million passengers with $4bn, Los Angeles International had 76.5 million with $3.5bn, Heathrow processed 83.9 million with $15.6bn, and Chicago’s O’Hare handled 58 million with $4.5bn.
“Why should we spend so much and get so little? This misalignment highlights systemic issues in aviation sector financing in Nigeria that can no longer be ignored,” he said.
He noted that several state-backed ventures, including Enugu Air, Cally Air, and the defunct Air Nigeria, failed due to mismanagement and political interference, despite concerns over viability.
“Several states are building airports with no passenger base to justify the cost. This is a misapplication of scarce resources and a poor model for aviation financing in Nigeria,” he said.
Comparing Nigeria with California, Rewane noted that California handles over 600,000 passengers daily across 25 airports, while Nigeria manages barely 43,000 with 32 airports.
He described this as a symptom of poor capital allocation, inefficient spending, and lack of economies of scale.
He pointed to bundled services, joint ventures, and open skies agreements as tools driving efficiency globally, with airlines becoming leaner and smarter through code-share deals and mergers.
In contrast, he said, Nigeria’s aviation sector remains weighed down by government obsession with ownership rather than enabling private sector growth.
“Government should not be in the business of running airlines or building airports. Its role must focus squarely on regulation, safety, and creating an environment for capital to thrive,” Rewane advised.
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
