Market News

By Dickson Omobola

In a country of over 200 million people with no fewer than 10 airlines, concerns are mounting over Nigeria’s future in the Single African Air Transport Market, SAATM.

Launched on January 28, 2018, SAATM is a project of the African Union, AU, to create a single market for air transport in Africa.

The air transport initiative once completely in force, industry analysts predict, would allow significant freedom of air transport in Africa, while advancing the AU’s 2063 Agenda focused on transforming Africa into a global powerhouse as well as achieving inclusive and sustainable socio-economic development.

But anxiety, which has left many disturbed, is spreading among stakeholders in the air transport sector, especially as regional carriers continue to expand into Nigeria.

The situation has not only evoked memories of the past when Nigeria had a formidable airline in defunct Nigeria Airways, it has also led to questions on when the country’s domestic carriers would be prepared to fully maximise the benefits of the air pact like its competitors. The debate is reignited following a recent call by the Minister of Aviation and Aerospace Development, Mr Festus Keyamo, to African countries to move from words to action in implementing SAATM.

Member countries

According to the AU, 38 countries, including Angola, Benin, Botswana, Burkina Faso, Cabo Verde, Cameroon, Central African Republic, Chad, Congo Republic, Côte d’Ivoire, Democratic Republic of Congo, Egypt, Equatorial Guinea, Eswatini, Ethiopia, Gabon, Gambia, Ghana, Guinea, Guinea Bissau, Kenya, Lesotho, Liberia, Mali, Morocco, Mozambique, Namibia, Niger, Nigeria, Rwanda, Sao tome et Principe, Senegal, Sierra Leone, South Africa, Togo, Zambia, Zimbabwe and Malawi, are subscribed to SAATM.

Thanks to the agreement, airlines from some of these countries have either increased or strengthened their reach in the lucrative Nigerian aviation market, thereby boosting their domestic economy.

Taking advantage

For instance, in January 2025, the newly established flag carrier of Sierra Leone, Air Sierra Leone, commenced flight operations into Nigeria, marking a significant step in regional expansion.

On June 23, 2024, Royal Air Maroc expanded its presence in Nigeria by adding the Federal Capital Territory, Abuja, to its route network.

By March 2026, South African Airways, SAA, which would be “responding to strong demand,” said it would increase flight frequencies into Lagos, Nigeria’s economic nerve centre by offering daily connections.

In early 2025, Africa World Airlines, AWA, also disclosed plans to increase flight frequency into Nigeria.

Before then, specifically in May 2024, Kenya Airways announced plans to increase flight frequencies to Lagos, with daily flights rising from seven weekly frequencies to 10.

The Nigerian situation

In Nigeria’s case, however, only few domestic airlines operate limited and often inconsistent flights across West Africa, leaving other regions; thereby raising worries over the country’s ability to benefit meaningfully from SAATM.

Checks by Saturday Vanguard reveal that these airlines include Akwa Ibom State owned airline, Ibom Air, which serves Accra; Nigeria’s largest flag carrier, Air Peace, which operates to Abidjan, Banjul, Cotonou, Dakar, Freetown and Monrovia; Overland Airways and ValueJet which operate to Banjul.

Given the unimpressive number and the lack of firm regional reach, some industry analysts have blamed it on the protectionist strategies devised against Nigeria.

According to them, these tactics include unfavourable visa policies and unfair handling services by their ground handling companies.

Ground handling companies are organisations that provide services to an aircraft while on the ground at an airport.

Protectionism

Bearing this in mind, President of the Aircraft Owners and Pilots Association of Nigeria, Dr Alex Nwuba, who spoke to Saturday Vanguard, said: “SAATM is great for the continent, but the implementation remains the challenge. Travel within Africa required to boost business, investment, tourism and trade within the continent is low, oftentimes requiring flight connections through regions outside the continent to connect cities in the continent.

“It is therefore hoped that a single air travel market will ameliorate this problem and bring about significant economic benefits to Africa. The challenge remains that most countries are protective of their aviation industry, while not even permitting visa free travel that will make it easier to make the human connections that will bring about prosperity for all. Until we make an African commitment for unity and oneness, the great plans for the continent will remain a pipedream.”

No structure

For a former General Manager, Public Affairs, Nigeria Airways, Mr Chris Aligbe, Nigerian airlines cannot harness the air pact because they are not structured to exploit the regional market.

According to him, the country’s carriers, which do not have the competency to key into SAATM, have refused to seek expertise.

He identified several factors inhibiting them, saying they include lack of structure to exploit regional markets, managerial and technical incompetence, lack of finance, no maintenance facility, absence of corporate governance and proper study.

Aligbe said: “We lack the capacity, which is not just about aircraft. We do not have the finances. We do not have the maintenance capacity. We have Forex challenges and there is a total absence of corporate governance.”

Market exploitation

While considering the numerous benefits of SAATM, the industry analyst, who spoke to Saturday Vanguard, said: “Every airline starting operation is coming to Nigeria. TAAG Angola is increasing flights. Uganda Air is coming to Nigeria. Air Algerie is increasing flights. But for us, we do not have what it takes, even our domestic market is not properly exploited; how much more the regional market.

“There are so many factors impeding the airlines. Those factors were fewer before; now, they are more. There have been pull and push factors put in place by the Minister of Aviation. Take for instance the Cape Town Convention Practice Directions.

“However, how many airlines have keyed into dry lease since the CTC practice direction was put in place? These airlines are exploiting our market while our airlines cannot even exploit the domestic market. Even when Nigerian airlines go to the regional market, they do not do proper research, especially on the West Coast.

Prediction

“The market in the West Coast is so small that no airline should fly it as a terminator. The challenges, which are both internal and external, are increasing.

And because we have delayed and we are still delaying, sooner than later, our airlines will have no passenger on any route they want to operate out of Nigeria. For those who think that a national flag carrier, which is the solution to this, will kill them; the absence of a national flag carrier will kill them faster.”

Way forward

For Mr Olumide Ohunayo, a travel analyst, there is a need for strategic growth in the country’s air transport sector to enable Nigeria regain its place among the committee of nations. The General Secretary of the Aviation Safety Round Table Initiative said: “For us, looking at the dwindling number of aircraft in Nigerian fleet and the astronomical exchange rate, what we need now is to develop and build.” According to him, building is not just about airlines, but a total revamp of the industry including airports.

Ohunayo told Saturday Vanguard: “We already have the market, what we do not have is a dominant airline or airlines that can say we have taken over the West Coast and other routes within Africa. We must be strategic about building to take our rightful place in the committee of nations.

FDI

“Our airlines need to come together under commercial partnerships. While they do that, there is also a need to address reasons we have not been able to attract foreign direct investment, FDI, into the airline business. This is very troubling. We had a category 1, the population and market for travel yet we cannot attract FDI.

“We need to understand what is holding such an investment. Is it economic policies? Is it security? Is it regulations? These are things hindering us from becoming a big player. We cannot get big with three or four aircraft per airline. We have to move beyond that number. And to do that, there has to be partnerships, mergers, commercial integration and foreign investors.

Hurry

“We need not be in a hurry. We should take those critical steps. It is not only the responsibility of the airlines. We also need to address infrastructure and some of our regulations to boost the domestic environment.”

Shorter routes, cheap airfares

The analyst who, however, urged more African countries to enter into the initiative, said: “You can see how horrible the fares within Africa are; the flight duration is unnecessarily long. The only way we can beat this is to continue to invoke the spirit of SAATM. It is for all parties to see SAATM’s benefits, which include flying shorter routes with cheap airfares, opening tourism and boosting the regional economy.”