Nigeria’s aviation sector is confronting decades of entrenched errors, many driven by poor decisions from Ministry of Aviation officials lacking industry expertise, according to industry veteran George Uriesi. He said these long-standing errors distorted growth and weakened airline stability over time. However, he noted that current leadership is now correcting those systemic failures while facing mounting operational pressures.
Speaking during an interview, Uriesi directly criticised past governance, stating that the sector suffered from policy interference by individuals unfamiliar with aviation realities. These errors, he argued, created inefficiencies across airports and airline operations. Therefore, the ongoing reforms are not just necessary but overdue after years of missteps.
“They are working to correct the mistakes of the past. It will take time, but the direction is right,” said the aviation executive. “For a long time, the industry suffered from interference by people who lacked aviation knowledge and individuals who didn’t understand aircraft, airports, or the complexities of the sector.”Watch Video of MD FAAN, Kuku on shifts made
Meanwhile, Uriesi observed that the current leadership approach marks a shift away from those costly errors. He emphasised that professionals are now guiding policy decisions, which is improving confidence across the industry. In addition, he noted that stakeholder engagement is now central to decision-making processes.
“The leadership is professional and focused. They are serious and deliberate in their approach, and importantly, they are listening to industry experts. That is the key difference,” he added.
However, he cautioned that reversing decades of structural errors will take time. He maintained that while progress is visible, reforms must remain consistent to achieve lasting impact. Nevertheless, he expressed optimism that the sector is finally moving in a sustainable direction.
“What we are seeing now is a necessary correction. It may not be immediate, but it is a step in the right direction,” he said.
Fuel Pressures Deepen Aviation Errors Impact
Beyond governance, Uriesi identified rising Jet A1 fuel costs as a major factor compounding existing errors in the system. He explained that fuel, which once accounted for about 40% of airline costs, now exceeds 50%. Consequently, this sharp increase is intensifying financial pressure on operators.
“The most critical issue right now is fuel. It used to account for about 40% of our operating costs, but it has risen to over 50%,” he said.
He further explained that fuel acts as a trigger for wider cost increases. As fuel prices rise, other operational expenses inevitably follow. Therefore, airlines are forced to absorb multiple layers of financial strain simultaneously.
“Fuel is always a leading indicator. Once it increases, every other cost eventually follows,” he noted.
In addition, Uriesi warned that even if fuel costs appear to stabilise, the broader cost structure may remain elevated. This means airlines could continue struggling despite apparent improvements. He stressed that unless global conditions improve quickly, the situation could worsen.
“In time, fuel may return to around 40%, but only because other costs will have risen to match it,” he said. “We hope the current situation reverses quickly; otherwise, it will seriously squeeze airline operators.”
For global context on aviation cost pressures, industry data from the International Air Transport Association shows fuel remains airlines’ largest expense driver worldwide.
Airlines Struggle as Market Limits Fare Increases
Despite rising costs driven by fuel and legacy errors, airlines have been unable to increase ticket fares. Uriesi explained that intense domestic competition prevents operators from passing costs to passengers. As a result, many airlines are absorbing losses.
“No, fares have not increased. In fact, airlines are already recording losses,” he said.
He added that any attempt to raise fares could push passengers toward competitors. Therefore, airlines are carefully balancing pricing strategies to retain market share. Meanwhile, demand remains limited, further tightening margins.
“If you raise prices now, you risk losing passengers to competitors. The domestic market is extremely competitive,” he explained.
This dynamic creates a difficult situation for operators. Costs continue rising, yet revenue growth remains constrained. According to Uriesi, this reflects a structural imbalance within the market.
“It’s a catch-22: costs are rising, but you cannot increase ticket prices. Everyone is competing for a limited pool of passengers,” he said.
Outlook: Fixing Errors While Managing Survival
Uriesi’s assessment highlights a dual challenge for Nigeria’s aviation industry. On one hand, reforms are addressing long-standing errors in governance and policy. On the other, external pressures such as fuel costs are testing airline resilience.
However, he believes that sustained commitment to reform will determine long-term success. Meanwhile, short-term survival will depend on how quickly operating conditions stabilise.
“We just hope the situation stabilises soon,” he said.
As the industry navigates this transition, the balance between correcting past errors and managing present realities will shape its future. For more aviation industry insights, visit NigerianFLIGHTDECK.
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