In an exclusive interview, Mr. Babatunde Adeniji, Executive Director of General Sales and Solution Management (GSSM) and a seasoned aviation consultant, has challenged the widely held belief that a national flag carrier could resolve the persistent challenges facing Nigeria’s airline industry.
Instead, he advocates for a comprehensive overhaul of the aviation sector’s structure, arguing that systemic issues, rather than ownership models, are the root cause of the sub-sector’s struggles.
Complex Systems Require Multifaceted Solutions
Adeniji described the notion of a national carrier as a “magic bullet” as overly simplistic, asserting that it ignores the complexity of the aviation ecosystem.
“The aviation system is part of a larger global and national economic system, and the airline sub-sector is just one piece of that puzzle,” he explained.
He emphasized that attributing the sector’s woes solely to private airlines or proposing a national carrier as the singular solution reflects a misdiagnosis of the industry’s problems.
According to Adeniji, the aviation value chain consists of numerous interconnected players, including manufacturers, insurers, fuel suppliers, airport managers, and regulatory agencies such as the Nigerian Civil Aviation Authority (NCAA).
While these actors collectively enable air travel, the financial health of airlines—the core product of civil aviation—remains the weakest link.
“Airlines bear the brunt of service failures within this value chain, face the highest risks, and receive the lowest returns,” Adeniji remarked.
Airlines at the Mercy of Systemic Inefficiencies
Highlighting the disparity in profitability, Adeniji described the airline industry as the “monkey that works while the baboon eats.”
He noted that airlines often fail to cover their cost of capital, a situation exacerbated by weak bargaining power relative to suppliers and customers.
“The airline industry creates significant value for the aviation ecosystem, yet struggles to extract any for itself,” he observed, calling for a restructuring of the economic and operational frameworks within which airlines operate.
Corporate Governance and Regulatory Gaps
Addressing concerns over corporate governance in the aviation industry, Adeniji acknowledged the shortcomings but argued that such issues extend beyond private airlines.
“The absence of governing boards in most government-owned aviation agencies is a far greater concern,” he said, questioning whether existing regulatory bodies adequately address governance lapses.
He also pointed to the NCAA’s Air Operator Certificate (AOC) process, which grants airlines the authority to operate, suggesting that any due diligence failures reflect poorly on the regulator.
Adeniji countered claims of substandard airline operations by highlighting that many Nigerian carriers have achieved and maintained the International Air Transport Association’s (IATA) Operational Safety Audit (IOSA) certification, a globally recognized standard.
Call for Structural Reforms
In conclusion, Adeniji reiterated his call for a systemic overhaul rather than isolated fixes. “Focusing solely on establishing a national flag carrier overlooks the structural inefficiencies that plague the entire aviation ecosystem,” he stated.
He urged stakeholders to address the broader economic and operational challenges that hinder the sector’s growth and sustainability.
Adeniji’s critique underscores the need for a nuanced and collaborative approach to revitalizing Nigeria’s airline industry, shifting the focus from ownership models to structural reforms.
