Nigeria’s aviation sector has long struggled with limited access to affordable financing, but renewed attention is being placed on the role local lenders are playing in helping domestic airlines survive and grow.

Industry observers are pointing to the partnership between Fidelity Bank and Air Peace as one of the most visible examples of indigenous financial backing transforming the country’s airline industry.

The relationship, which dates back more than a decade, has come under fresh spotlight following Air Peace’s expansion into international routes, including its direct Lagos-to-London service launched in 2024.

Why Nigeria’s aviation sector faces financing challenges

Nigeria’s aviation industry remains one of the country’s most capital-intensive sectors.

Airlines face rising fuel prices, foreign exchange instability, aircraft maintenance costs and strict international regulatory requirements set by the International Civil Aviation Organization.

Industry analysts say many foreign lessors and financiers still view Nigeria as a high-risk market due to concerns over currency fluctuations, loan repayment challenges and difficulties surrounding aircraft repossession.

That perception has made it harder for Nigerian carriers to secure modern aircraft and favourable lease agreements compared with competitors in other regions.

Analysts also argue that weak financial management among some operators has historically discouraged banks from lending to airlines.

“Domestic airlines continue to shrink in size due to lack of adequate financing,” the press release stated, adding that some operators struggled to separate business finances from personal spending.

Fidelity Bank’s early support for Air Peace

Air Peace launched operations on 24 October 2014 with seven aircraft, including Boeing 737-500 planes and Dornier 328 aircraft.

According to the statement, Fidelity Bank was among the few financial institutions willing to support the airline during its early years, at a time when many banks reportedly avoided aviation lending.

The release said the bank later financed aircraft acquisitions, including a 2018 agreement involving Boeing aircraft purchases.

Over the years, Air Peace has expanded into what it describes as the largest airline operation in West Africa by fleet size and route network.

Speaking recently during a briefing announcing Air Peace’s Abuja-London Heathrow service, the airline’s chairman, Allen Onyema, said the carrier’s financial discipline helped strengthen investor confidence.

“The banking industry confidence has grown due to our financial integrity,” Onyema said.

“Every Nigerian bank now wants to partner with us because we see borrowed money as other people’s money.”

He also credited the airline’s financial practices and maintenance partnerships for helping it secure international credibility.

London route intensified competition

Air Peace’s entry into the London market in March 2024 drew national attention after the airline introduced fares significantly lower than prices previously charged on the route.

The company said ticket prices launched at around ₦1.2 million, compared with fares of up to ₦3 million previously seen on some competing routes.

The development triggered wider competition among airlines operating between Nigeria and the United Kingdom, with many passengers welcoming lower fares.

Aviation analysts say increased competition on international routes could help reduce travel costs for Nigerians while improving service quality across the sector.

Fidelity Bank celebrates Air Peace milestone

In April 2024, Fidelity Bank hosted a dinner in honour of Air Peace following the launch of its London service and the airline’s 10th anniversary.

Speaking at the event, Fidelity Bank’s Managing Director and Chief Executive Officer, Nneka Onyeali-Ikpe, praised the airline’s growth and financial discipline.

“Today, we are celebrating one of ours,” she said.

“When you go through their accounts, you will not see personal spend. That is a lesson for everybody.”

Onyema also recalled the bank’s support during the airline’s early years.

“This bank is the only bank that responded to us in the early days. They believed in us,” he said.

Support extends beyond Air Peace

The press release also highlighted Fidelity Bank’s involvement in financing other Nigerian airlines, including Ibom Air and Enugu Air.

Former Ibom Air Managing Director Mfon Udom said Fidelity Bank played a lead role in financing the airline’s Airbus A220-300 aircraft acquisition.

“The aircraft in particular has been made possible by Fidelity Bank and Union Bank,” he said during the aircraft reception ceremony in Uyo.

At the launch of Enugu Air, Onyeali-Ikpe described aviation as a major driver of economic growth and regional connectivity.

“Our support for Enugu Air reflects our long-standing belief in aviation as a driver of economic growth, regional connectivity, and national transformation,” she said.

Cape Town Convention expected to improve investor confidence

The statement also referenced Nigeria’s recent signing of the Cape Town Convention Practice Direction, led by Vice-President Kashim Shettima and Aviation Minister Festus Keyamo.

The agreement is designed to simplify aircraft leasing and financing processes, potentially reducing operational costs for airlines and improving investor confidence in the sector.

Industry experts say the move could encourage more local and international lenders to finance Nigerian airlines, particularly carriers seeking fleet expansion.

Why it matters

Nigeria has one of Africa’s largest aviation markets, driven by a growing middle class, business travel and a large diaspora population.

However, limited financing access has historically slowed fleet growth and route expansion for local airlines.

Analysts say stronger partnerships between banks and airlines could help domestic carriers compete more effectively with foreign operators while creating jobs and supporting broader economic growth.

Industry reactions

Some aviation stakeholders have welcomed increased local financing support, arguing that Nigerian airlines require stronger institutional backing to survive global competition.

Others, however, warn that sustainability will depend on prudent financial management, regulatory stability and improved infrastructure at airports nationwide.

Economists also note that cheaper international fares could provide relief for travellers struggling with inflation and rising living costs.

What’s next?

With Nigeria implementing reforms linked to the Cape Town Convention and local banks showing greater willingness to finance aviation projects, industry observers say more airlines may seek fleet expansion in the coming years.

The key test will be whether operators can maintain financial discipline while navigating volatile foreign exchange rates and high operating costs.

A steep rise in parking charges at the Multi-Storey Car Park of Murtala Muhammed Airport Terminal 2 (MM2) has triggered concerns about affordability and fairness, with critics describing the move as economically insensitive.

Overnight parking at the terminal, previously set at ₦6,000, has reportedly increased to ₦50,000 — a jump that some travellers and analysts say lacks clear justification.

The facility is operated by Bi-Courtney Aviation Services Limited and managed by Balosh Company.

Why it matters

For many Lagos residents, airport parking has long been a practical option.

With rising housing costs pushing people to suburbs, travellers often drive to the airport, park for a few days, and return to their vehicles.

Critics say the new rate disrupts that routine.

“Moving from ₦6,000 to ₦50,000 for overnight parking raises serious questions about fairness,” said Olutayo Irantiola.

He argues that at a time when transport costs are already rising, additional charges risk placing further strain on middle-income Nigerians.

Rising travel costs add pressure

Air travel in Nigeria has become more expensive in recent years, partly due to rising aviation fuel prices.

At the same time, petrol costs have increased, affecting both private vehicle use and taxi fares.

Some travellers say this leaves them with fewer affordable options.

Irantiola writes:

“This is not a fair deal for Nigerian travellers who are working hard to travel by air, given the fear of what could go wrong on the road.”

He suggests the parking increase may indirectly push travellers toward higher-cost transport alternatives, including airport taxis.

Industry concerns and past controversies

The parking management firm, Balosh, has previously faced scrutiny.

In 2021, its operations at Lagos State University Teaching Hospital (LASUTH) drew public criticism over parking charges within hospital premises.

Observers say the MM2 situation reflects broader concerns about how essential services are priced in Nigeria.

There are also worries that stricter enforcement may disproportionately affect private car owners, while commercial transport operators face fewer restrictions.

Impact on businesses and commuters

Beyond travellers, the increase could affect small businesses operating within the airport.

Delivery riders and service providers may face additional barriers, potentially raising costs for customers.

Irantiola warns:

“This drive for revenue will kill more businesses than build a thriving economy.”

Some analysts say such pricing decisions could discourage airport usage and reduce overall economic activity.

Calls for government intervention

The opinion piece calls on authorities, including Festus Keyamo and the Federal Airports Authority of Nigeria, to review the policy

Irantiola suggests a targeted approach, where verified travellers could receive concessions based on boarding passes and identification.

He writes:

“Making the car park rate unaffordable to the common man should not be allowed to stay.”

About the writer

Olutayo Irantiola is a Lagos-based public relations consultant and public affairs analyst. His work focuses on governance, economic policy, and the impact of public and private sector decisions on everyday Nigerians.

What’s next

As public reaction grows, attention may turn to regulators and airport authorities for clarification.

Key questions remain about how pricing decisions are made and whether consumer protection measures will be introduced.

For now, the debate highlights broader concerns about the cost of living and access to essential services in Nigeria.

Nollywood actress Iyabo Ojo says she was not paid to promote improvements at Nigerian airports after filming at a facility operated by the Federal Airports Authority of Nigeria (FAAN).

The actress, who shared her comments on Instagram, said she was motivated by patriotism rather than politics.

Her remarks come amid growing public debate over infrastructure reforms and whether public figures should openly commend government-linked agencies.

“I praised good, not government”

In the post, Ojo described herself as “Nigerian” and “a voice”.

“When I see progress,  airports upgraded, roads rebuilt, systems improved,  I shout it from the rooftops,” she wrote.

“Not because I’m paid, not because I’m political, but because I feel it and I want good for my country.”

She added that FAAN approached her after she observed changes at the airport.

“FAAN approached me: You’ve seen the changes, please help us spread the word. So I did. FOR FREE. No fee. No contract. Just love for Nigeria.”

The actress said her decision was not transactional.

“My fees as an influencer are way higher than the cost to pay and film at the airport — so I won’t call it trade… but just for the love of seeing changes.”

Responding to critics, she wrote: “I praise GOOD  not government, and if the government does good, I’ll praise them too.”

Why it matters

Nigeria’s aviation sector has faced years of criticism over infrastructure, passenger experience and safety concerns.

FAAN, which manages the country’s major airports, has recently announced upgrades in facilities and passenger services.

Public endorsements by celebrities often influence public perception, particularly in a country where trust in public institutions can be fragile.

For frequent travellers, airport improvements can affect business efficiency, tourism and international reputation.

FAAN’s role

The Federal Airports Authority of Nigeria oversees operations at major airports including those in Lagos and Abuja.

In recent months, the agency has highlighted renovations, improved screening systems and facility upgrades.

Officials have said the changes are aimed at improving passenger comfort and aligning with international aviation standards.

What’s next?

It remains unclear whether FAAN plans to engage more public figures in promoting airport reforms.

Aviation stakeholders say long-term public confidence will depend on sustained improvements rather than publicity campaigns.

For now, Ojo says her position is clear.

“If Nigeria must rise, we ALL must build it,” she wrote. “Silence helps no one. Progress needs witnesses.”