Nigeria's aviation industry is facing a severe crisis as domestic air travel plunges to its lowest point in three years, putting major carriers like Air Peace and Max Air under intense pressure. New data reveals a stark contrast between struggling local routes and a booming international travel market.
Domestic Passenger Numbers Crash to Three-Year Low
Official figures released by the Federal Airports Authority of Nigeria (FAAN) paint a grim picture for home-based airlines. Domestic passenger traffic collapsed to 12.54 million in 2024, a sharp fall from the 14.52 million recorded in 2022. This represents a staggering 13.6 per cent contraction over the three-year period, meaning nearly two million fewer passengers chose to fly within Nigeria.
The decline has been steady and worrying. Between 2022 and 2023, passenger numbers dropped by 7.6 per cent to 13.41 million. The downward trend accelerated in 2024, with a further year-on-year reduction of 6.4 per cent. Aviation analysts directly link this exodus to skyrocketing airfares, a burdensome regime of multiple taxes, and frequent flight delays and cancellations that have eroded consumer confidence.
Soaring Costs and Passenger Frustration Drive Shift to Roads
Throughout 2024 and into 2025, domestic airline operators have voiced loud complaints about the crippling effect of numerous taxes and charges across Nigerian airports. They argue these levies have pushed operating costs to unsustainable levels, costs inevitably passed on to the flying public through higher ticket prices.
This has made air travel increasingly uncompetitive compared to road transport, despite the well-known security and safety risks associated with long-distance journeys on Nigerian highways. Stakeholders warn that without urgent intervention to reduce costs and dramatically improve service quality, the shift from air to road will continue unabated.
"The domestic decline could persist if airlines fail to improve passenger treatment and reliability," warned retired pilot Mohammed Badamosi. He highlighted that high fares combined with unpredictable schedules actively discourage travellers, who often find road transport more dependable. Badamosi stressed that Nigerian airlines must prioritize respecting passengers, adhering to schedules, and delivering consistent service for any hope of recovery.
International Travel Thrives Amid Domestic Gloom
In a striking contradiction, international air travel from Nigeria is experiencing robust growth. FAAN data shows international passenger traffic rose from 3.75 million in 2022 to 4.07 million in 2023, an 8.4 per cent increase. The growth continued in 2024, with numbers climbing to 4.33 million, representing another 6.4 per cent rise.
Cumulatively, international traffic expanded by 15.5 per cent between 2022 and 2024, adding over 580,000 passengers. Analysts attribute this strength to sustained demand from affluent travellers, increased migration, growing cross-border trade, and Nigeria's deeper connections to global networks. This boom has largely benefited foreign airlines, as local carriers have limited capacity on international routes.
Airline Chiefs Warn of Catastrophic Fare Hikes
The situation may worsen before it improves. Allen Onyema, Chairman of Air Peace, issued a stark warning that domestic airfares could reach an unprecedented N1 million per ticket if the federal government implements proposed new tax laws. This prediction followed earlier reports that local airlines hiked fares during the 2025 yuletide season, a move that further suppressed passenger traffic.
However, the Presidential Fiscal Policy and Tax Reforms Committee has countered these claims. In a statement, the committee asserted that Nigeria's new tax laws are designed to support airlines, not harm them, even as it acknowledged the financial pressures from multiple taxes and regulatory charges.
The deepening divide between a thriving international sector and a shrinking domestic market serves as a clear warning signal. If the high costs, poor service, and operational challenges facing airlines like Air Peace and Max Air are not urgently addressed, the landscape of Nigerian aviation could be permanently reshaped, with severe consequences for connectivity and the economy.
