Director-General of the World Trade Organization, WTO, Ngozi Okonjo-Iweala has called on the Federal Government to prioritise the upgrade and maintenance of Nigeria’s airport infrastructure, warning that such investment is critical for the country’s global economic competitiveness.
Speaking on Wednesday at the Aircraft Acquisition and Investment Summit in Lagos, Okonjo-Iweala said that modern aviation infrastructure is a prerequisite for Nigeria’s ambition to move up the global value chain.
“For a country like Nigeria, upgrading and maintaining airport infrastructure is not optional but essential,” she said, urging authorities to invest across the aviation ecosystem, including fleet expansion and maintenance culture. She emphasised the need for Public-Private Partnerships, PPPs, noting that government alone cannot shoulder the financial burden of modernising airport facilities.
“The model is straightforward government provides the enabling framework and regulatory certainty, while the private sector brings capital, expertise, and efficiency,” she said, adding that such collaboration has driven growth in other global aviation markets.
Okonjo-Iweala also raised concerns over rising operational costs in Nigeria’s aviation sector, particularly the impact of escalating fuel prices, taxes, and airport charges on airline sustainability. “The full cost structure—fuel, taxes, levies—must be reexamined to create an enabling environment for investors,” she said.
Her remarks come amid a sharp surge in aviation fuel prices, which have reportedly risen by about 184 percent in recent months due to geopolitical tensions in the Middle East. Jet fuel prices have climbed from around ₦900 per litre in January to over ₦2,500 per litre, placing severe strain on airline operations.
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Industry data show that aviation fuel accounts for nearly 40 percent of airlines’ operating costs, followed closely by maintenance expenses.
Okonjo-Iweala further urged the government to adopt a competitive tax regime, promote market liberalisation, and ease bilateral restrictions limiting African airlines’ route access, stressing the importance of regional cooperation. “Government must see aviation as a strategic economic enabler, not merely a revenue source,” she said.
She acknowledged improvements in Nigeria’s aviation safety record over the past two decades but stressed that more progress is needed. She called on domestic carriers to upgrade and expand their fleets to meet growing demand and international standards.
Nigeria’s aviation sector contributes between $1.7 billion and $2.5 billion to the country’s Gross Domestic Product, with over 31 airports and 13 scheduled domestic airlines. However, the industry continues to grapple with infrastructure deficits, high operating costs, and regulatory challenges.
Analysts say addressing these structural constraints could unlock significant economic growth, enhance regional connectivity, and position Nigeria as a key aviation hub in Africa.
