American aircraft manufacturer, Boeing, have warned that high interest rates in Nigeria are undermining the competitiveness of domestic airlines.
This was disclosed by the Boeing Executive Sales Director for the African region, Moore Ibekwe Jr, at the official unveiling ceremony of 2 newly acquired Boeing 737-800NG Aircraft named after Obi of Onitsha, HRM Nnaemeka Achebe and Late Prof. Chinua Achebe, in Lagos, on Thursday.
According to industry stakeholders, by naming aircraft after the Obi of Onitsha and Prof. Chinua Achebe, means the airline is having cultural depth and emotional connection to its people and a narrator of Nigeria’s story and an airline of national unity.
Ibekwe further stressed that operators cannot compete globally under the current harsh financing environment.
According to him, while aviation remains a global business, Nigerian airlines continue to face significant funding constraints compared to their international counterparts, who have access to single-digit interest rate loans.
According to him, the disparity in financing costs places Nigerian carriers at a disadvantage in fleet expansion, operations, and overall sustainability.
“I want to see our aviation industry rival others. We have to be on the global stage in aviation. We need to excel in every corner, but funding must be available,” he said.
He further highlighted that Africa requires about 12,000 aircraft to meet growing demand, adding that increased investment and access to affordable financing would be critical to achieving that target.
The Boeing executive stressed that the aviation sector is inherently global and interconnected, warning that no airline can thrive competitively if it continues to rely on high-cost commercial loans.
Speaking earlier, the chairman of United Nigeria Airlines, Prof. Obiora Okonkwo, raised concerns that high interest rates and the challenging cost environment are undermining the competitiveness of domestic airlines. He, therefore, called for urgent policy reforms to strengthen the sector.
Prof. Okonkwo said Nigeria remains one of the most expensive places in the world for airlines to operate, citing a recent report by the International Air Transport Association (IATA).
He warned that unless the cost burden is reduced, local operators would continue to struggle against global competitors.
“We are not happy that Nigeria is the most expensive place to operate for airlines as said by IATA. We are hopeful that government will listen to appeals for reduction in charges,” he said.
Okonkwo also called for a review of the current revenue structure in the aviation sector, arguing that funds generated by regulatory agencies should be retained within the industry to improve efficiency and reduce operational pressure.
“Government should leave aviation money for aviation agencies’ accounts. When revenue goes elsewhere, it puts pressure on NCAA, FAAN, and NAMA. We want the money to be left in the hands of regulators and service providers so they can reduce charges,” he said.
He further stressed that aviation plays a critical role in Nigeria’s broader economy, particularly in oil and gas operations where helicopter services are essential for exploration activities.
According to him, access to affordable financing remains a major barrier to growth, noting that while the Bank of Industry (BOI) has provided some support, funding remains insufficient.
“What we get from commercial banks is very commercial. BoI has played a good role, but their funding is limited. We need government to work out opportunities for single-digit loans,” he said.
Okonkwo also expressed optimism about the future expansion of Nigerian aviation, revealing plans for additional aircraft acquisitions.
“In August, we will celebrate with additional two aircraft on full dry lease. That will be the first time in 15 years. Very soon, we will gather again to celebrate another aircraft,” he added.
In his remarks, the Obi of Onitsha, Igwe Nnaemeka Achebe, expressed delight at the unveiling of two aircraft linked to the development initiative, describing the moment as a significant milestone for the industry.
“I am overwhelmed and happy to celebrate our brother and son on the unveiling of two aircraft. My name will be inscribed on one aircraft alongside Chinua Achebe,” the monarch said.
He commended the resilience required to operate in the aviation sector, describing it as one of the most demanding industries globally, while urging stakeholders to remain proactive in driving growth and innovation.
Stakeholders collectively agreed that without improved access to funding, reduced charges, and supportive policies, Nigeria’s aviation industry may continue to lag behind global standards despite its strategic importance to the economy.
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