Nigeria aviation sector economy adds $2.5bn and 217,000 Jobs

Nigeria aviation sector economy contributes $2.5bn yearly and supports 217,000 jobs, IATA report reveals

Nigeria aviation sector economy is playing a critical role in national development, contributing $2.5 billion annually to GDP and supporting over 217,000 jobs, according to a new report by the International Air Transport Association (IATA).

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The report, titled The Value of Air Transport to Nigeria’s Economy, highlights the transformative impact of domestic and international aviation on employment, trade, tourism, and productivity.

IATA revealed that domestic airlines alone contribute $449.7 million each year, directly creating 29,900 jobs across the country.

Beyond the airlines, airports, air navigation services, and civil aviation manufacturing add another $252.4 million and 9,600 jobs to the economy.

In total, 39,500 people are directly employed within Nigeria’s aviation sector, with tens of thousands more supported indirectly across the broader value chain.

Tourism supported by aviation also brings a substantial economic boost, injecting $760.2 million annually from international visitors.

Of that, $454.1 million stems from tourism-related activity, supporting a further 66,600 jobs.

Speaking on the findings, Kamil Alawadhi, IATA’s Regional Vice President for Africa and the Middle East, said:

“Aviation is a powerful engine for economic and social development. Nigeria’s National Day is a good opportunity to reflect on the immense value aviation brings to the country.”

The report acknowledged progress in air travel affordability. Between 2011 and 2023, average airfares dropped 43 per cent in real terms.

Still, challenges remain: the average Nigerian must work 37.6 days to afford a single plane ticket, underscoring the issue of accessibility.

In 2023, Nigerians took 40 flights per 1,000 people, and air cargo volumes reached 195,700 tonnes, demonstrating aviation’s expanding role in commerce and connectivity.

However, IATA warned of a decline in international air connectivity. The report states that since 2014, Nigeria’s global connectivity index has fallen 1.5 per cent within Africa and 21 per cent with other regions.

Only one per cent of international passengers arriving in Nigeria use the country as a connecting hub, indicating limited integration into the wider network of global travel.

Despite this, international travel remains significant, with 23 per cent of all air departures in 2023 classified as international.

Among the 2.1 million international departures, 38 per cent were bound for Europe, 23 per cent for other African countries, and 18 per cent for North America.

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The data makes a compelling case for investment in aviation infrastructure, policy reform, and improved international connectivity to unlock further growth in a sector that is already proving essential to Nigeria’s economic and social advancement.

David Okere