Without Lagos Airport Hub Upgrade, 200 Aircraft Will Struggle

If you have 200 aircraft, you cannot have a hub except the airport infrastructure supports it,” Onyema said. This underlies his argument about a well-thought-out Lagos Airport hub at the MMIA.

BY ANTHONY OMOH

Air Peace Chairman, Dr. Allen Onyema has stressed that even with 200 aircraft, Nigerian airlines cannot establish a true Lagos airport hub without critical infrastructure upgrades.

Speaking on operational challenges, Onyema explained that while Air Peace currently flies to about nine African countries, hub creation depends on airport capacity, not just fleet size.

“You are told that the airlines make hubs. No. You need the airport infrastructure to be able to have a hub. If you have 200 aircraft, you cannot have a hub except the airport infrastructure supports it,” Onyema said. This underlies his argument about a well-thought-out Lagos Airport hub at the MMIA.

Lagos Airport Hub Key Ingredient for Airline Success

According to him, the matter was taken to the Minister of Aviation and Aerospace Development, who recognised the problem and presented it to President Bola Ahmed Tinubu.

Onyema described the president as a “progressively minded businessman” who approved action to improve Lagos airport facilities.

The Air Peace boss gave practical examples of the need for a true transit facility. He cited a case where passengers flying from Douala to Dakar had to pay unnecessary visa fees.

“We took passengers from Douala. When we got to Lagos, due to the unavailability of Lagos airport hub they were told to pay $400 visa fees before entering Nigeria, even though they were only in transit,” he said.

“This is because Nigerian airports have no transit facilities.”

Onyema noted that such passengers are subjected to full immigration checks, COVID screening, quarantine, customs, and other processes before re-checking in, a system that discourages future patronage.

“Tell me if that person will fly your airline again to anywhere in the world? Let us call a spade a spade. The Lagos airport has no transit facility, a key component of a Lagos airport hub,” he added.

He praised the current government and the Federal Airports Authority of Nigeria (FAAN) for their efforts in addressing these gaps.

Onyema mentioned that the Managing Director of FAAN, Olubunmi Kuku, has been responsive to airline concerns.

The Air Peace chairman expressed optimism that in the next 22 months, Lagos would have a functional hub standard airport.

He contrasted Nigeria’s situation with Togo, which operates only one airport but serves as a passenger convergence point for multiple countries.

“Ordinary Togo has no domestic operations. They only have one airport, but they converge passengers from everywhere and export them,” he stressed.

“If we give Nigerian airlines the right infrastructure, especially a Lagos airport hub, Ethiopia and the rest will be a thing of the past in 10 years,” Onyema said.

He also addressed the broader international perception issues affecting Nigerian airlines, particularly insurance premiums.

“They tell you your country is unsafe and paint us black and blue. The premium a Nigerian airline pays for one aircraft is what is used to insure five or six aircraft outside Nigeria. That is country risk,” he explained.

Onyema stressed that financing challenges cannot be solved without tackling such operational and reputational barriers.

“If you are talking about finance without removing those hindrances that affect our bottom line, we will continue going down,” he concluded.

Government Loan Guarantees, Welcome

Also speaking on federal government support in terms of financing, Onyema noted that loan guarantees, whether sourced locally or internationally, would be a welcome boost for Nigerian carriers.

However, he stressed that airlines must first look inward before seeking such intervention. “It would be good for the government to guarantee our loans,” he said.

“But as I mentioned earlier, airlines themselves must first carry out self-introspection. You don’t push for a government guarantee only to default on repayment. That takes us back to square one.”

Onyema urged airline operators to clearly define their business models before taking on debt.

This, he explained, includes deciding whether to operate as a premium service-driven carrier or a budget-focused one, and understanding the market share they can realistically sustain.

He cautioned that borrowing more than required could undermine operations. “Before you borrow money, you must examine your climate, the environment in which you operate,” Onyema said.

Onyema maintained that while financial backing is vital, true transformation will come from strategic planning, disciplined borrowing and infrastructure development. 

He stressed that without the Lagos Airport hub upgrade, Nigeria’s aviation sector will struggle to attract global partnerships or fully utilise its fleet capacity, regardless of government guarantees.