Renowned economist and CEO of Financial Derivatives Company, Mr. Bismarck Rewane, delivered a hard-hitting address at the 29th Annual Conference of the League of Airport and Aviation Correspondents (LAAC), warning that Nigeria’s aviation sector is in urgent need of consolidation and reform.
Speaking on the theme “Unlocking Investment Opportunities in Nigeria’s Aviation Sector: The Role of Financial Institutions,” Rewane pulled no punches in exposing the deep-rooted inefficiencies in the industry, while also laying out clear strategies for revival.
“If I come back in another life, I’d rather be a psychiatrist,” he said, drawing laughter from the audience. “Because what we are doing in this sector defies economic logic.”
According to Rewane, Nigeria’s aviation landscape is bloated with unviable airports and fragmented airline operators. Out of 32 airports across the country, only four account for up to 96% of total passenger traffic. Similarly, though 23 domestic airlines are registered, just five carry the majority of passengers.
He described this structure as both wasteful and unsustainable, adding that the country lost $3.5 billion in aviation revenue between 2020 and 2024 due to inefficiencies, poor infrastructure, and mismanagement.
Rewane contrasted Nigeria’s aviation sector with global benchmarks, citing examples like California, which has fewer airports than Nigeria but handles far more passengers — up to 600,000 per day compared to Nigeria’s 43,000. He further revealed that while Nigeria spends about $1.75 billion to support 6.5 million passengers annually, Dubai processes 92 million passengers with $4 billion — highlighting glaring gaps in productivity and value.
Beyond aviation, he presented a macroeconomic overview. Rewane noted that the Nigerian economy is showing signs of gradual recovery, with inflation easing from 22.97% in June to 21.79% in July, and external reserves climbing from $37 billion to nearly $40 billion. Yet, despite these positive indicators, “people are hungry, angry, and frustrated,” he said, acknowledging the disconnect between economic statistics and lived realities.
The Way Forward
Rewane urged the government to focus on creating policy stability, enabling the private sector to take the lead in operations, and investing in critical infrastructure like aircraft maintenance and simulator training.
“Government should focus on policy and regulation, not running airlines,” he said. “Even the things it’s supposed to manage properly, it often mismanages.”
He strongly advocated for public-private partnerships (PPP), competitive hub development in Lagos and Abuja, and emphasized the need for safety regulations and consistent oversight to build investor confidence.
Quoting economist Paris Akaya, Rewane concluded with a three-step message for industry stakeholders: “First, stop doing dumb things. Second, start doing smart things. Third, start doing modern things.”
His presentation was a mix of brutal honesty, sharp data, and compelling storytelling, a wake-up call to an industry at a crossroads.
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