In the past two years, 42 domestic aircraft in Nigeria have been grounded due to a severe shortage of foreign exchange (forex) and stringent regulatory actions, reducing the number of operational planes from 107 to 65.
This 39% decrease has contributed significantly to skyrocketing airfares on domestic routes, with one-way ticket prices increasing by up to 180%.
Key routes, such as Lagos to Abuja, now see average one-way ticket prices of around N143,000, compared to N51,000 just a year ago.
The forex crisis has hindered airlines from retrieving aircraft sent abroad for maintenance, exacerbating the shortage of available planes and pushing up prices further.
Airlines such as Max Air, United Nigeria Airlines, and Arik Air have seen their fleets severely depleted, with several planes stuck abroad due to the inability to pay for maintenance services.
The situation is worsened by the high cost of aircraft insurance, often requiring Nigerian airlines to take out dual insurance policies due to limited capacity in local insurance markets.
Experts and industry stakeholders are urging the Federal Government to address the forex scarcity and stabilize the naira-to-dollar exchange rate to prevent further deterioration of the aviation sector.
Without intervention, the ongoing challenges threaten to drive up costs even more, placing additional strain on both airlines and passengers.