Nigerian airlines face severe financial strain from overseas aircraft maintenance, George Uriesi, Acting CEO of Ibom Air, told delegates at the 2025 FAAN National Aviation Conference (FNAC). He described routine checks sent abroad as “unsustainable” and a “scam,” noting that planned budgets of $1.5 million often escalate to $3-4 million per aircraft.
“Every time we maintain our aeroplanes outside, planning becomes extremely difficult, and costs soar beyond reason,” Uriesi said.
He warned that this practice undermines airline profitability despite operational growth. “We are being taken advantage of. It is a systemic problem for Nigerian airlines,” he added.
Local Aircraft Maintenance Is the Solution
Uriesi stressed that enhancing local aircraft maintenance capability is critical for long-term airline sustainability.
“We need to start maintaining our aircraft inside Nigeria, at least partially. The current approach of aircraft maintenance is financially crippling and operationally inefficient,” he said. “Relying entirely on foreign service providers puts airlines at the mercy of international pricing.”
Ibom Air operates modern Airbus A220 aircraft, all purchased brand-new. European carriers often secure financing for the same planes at 3-4 percent interest over 15 years, but Nigerian airlines pay roughly 30 percent over seven years. “A European operator might pay $100 per month for an aircraft; we pay $500,” Uriesi explained. He said this massive disparity inflates costs and restricts fleet expansion.
High insurance premiums further exacerbate financial pressure. Ibom Air pays nearly twice what international peers pay for equivalent risk coverage. “Why is Nigeria treated differently?” he asked. “The risk level is identical, yet our costs are double. This challenge must be addressed for Nigerian airlines to survive.”
Taxes and regulatory fees add another layer of difficulty. For example, Lagos-Accra flights incur roughly $185 in combined taxes, while the Nigerian Civil Aviation Authority plans to add $11.50 per flight. “When you factor in ground handling, fuel, landing fees, and overflight charges, pricing tickets profitably becomes almost impossible,” Uriesi said. He noted that these costs affect both profitability and consumer fares.
Despite these hurdles, Ibom Air has achieved an 88 percent compounded average revenue growth since 2019. Uriesi credited interventions by the Minister of Aviation for reducing some bottlenecks in aircraft acquisition. “Ministerial efforts have helped, but systemic challenges remain, particularly in aircraft maintenance and high-dollar-denominated costs,” he noted.
Uriesi highlighted the broader aviation ecosystem, including manufacturers, lessors, insurers, and fuel suppliers, noting that airlines bear the brunt of inefficiencies. “The airline is the heavy lifter,” he said. “We earn in naira but pay in dollars. Every inefficiency in the system inflates costs. Solving maintenance inefficiencies could immediately improve financial outcomes.”
Concluding his presentation, Uriesi described achieving sustainable profitability in Nigeria as a uniquely difficult obstacle course. “Profitability isn’t just revenue minus costs here. It’s navigating a complex, dollar-based ecosystem with infrastructure, regulatory, and operational hurdles stacked against us. Addressing aircraft maintenance inefficiencies and other bottlenecks could transform the financial health of Nigerian airlines almost overnight,” he said.
