Aviation chiefs rip costly loans, blame bad policy
Nigerian aviation leaders have proposed government intervention to address financing challenges that threaten airline sustainability across the country. Alex Nwuba, who heads the Aircraft Owners and Pilots Association of Nigeria, advocates establishing a national leasing firm with 500 planes that would offer aircraft at 4 percent interest rates rather than the current 28 to 34 percent borrowing costs domestic carriers face. He noted global aviation margins typically range from 3 to 7 percent, while Nigerian operators allocate roughly 47 percent of revenue toward fuel expenses alone.
Captain Ado Sanusi, who manages Aero Contractors Airlines, blamed unstable regulations for mounting expenses that erode profitability. He called for upgrades at domestic terminals where passenger processing takes excessive time compared with international facilities. Captain Samuel Caulcrick, formerly with the Nigerian College of Aviation Technology, said restricted capital access prevents fleet modernization and route expansion. He suggested options like Islamic financing structures, infrastructure bonds or creating an aviation development bank backed by sovereign guarantees to support regional carriers competing against better-funded international operators.
