At the FAAN National Aviation Conference (FNAC) held at Eko Hotel, Lagos, the Managing Director/Chief Executive of 7Star Global Hangar Limited, Engr. Isaac David Balami, warned that Nigeria is losing more than $1 billion every year—about ₦1.5 trillion at current exchange rates—to offshore aircraft maintenance due to weak local capacity, fragmented collaboration, and limited investment in the Maintenance, Repair and Overhaul (MRO) sector.
Speaking during the panel session on “Airline Profitability and Cost Optimization,” Balami described the capital flight as one of the aviation industry’s most urgent structural problems, noting that the country also forfeits the opportunity to create over 25,000 skilled jobs annually.
Drawing from more than two decades of industry experience—including years as President of the National Association of Aircraft Pilots and Engineers (NAAPE)—Balami said Nigerian aviation professionals are among the most competent in the world. However, he lamented that local engineers and pilots excel abroad while struggling at home due to structural constraints and lack of coordinated support.
He highlighted the issue of poor collaboration among local MROs as a major setback. Despite rising capacity with new facilities such as 7Star Global Hangar, Aero Contractors, ExecuJet, Air First, and Aerotag in Abuja, Balami said that even if all Nigerian MROs operated at full capacity, they would still not meet 20% of the nation’s total maintenance demand.
He explained that the high cost of specialized tools, equipment, hangarage, and certifications should necessitate joint investments and shared tooling, but local MROs often compete instead of collaborating.
“For example, instead of spending $1 million to equip for a B737 C-check through shared tools, we end up spending $5 million because we duplicate investments. No MRO in the world has 100 percent of all required equipment; NCAA recognizes this. Yet we compete instead of complementing each other,” he said.
Balami emphasized that African operators must stop relying on foreign support to develop the continent’s aviation ecosystem. “Nobody will leave his or her continent to come and build Africa for us,” he declared. “Whether in airline operations, MRO, or regulation, we must support one another.”
He also pointed to funding as a critical barrier. While foreign MROs easily access capital and even lease out equipment, he said Nigerian companies face difficulty securing loans despite the industry’s huge market potential.
Balami cited the example of 7Star’s expansion into the United Kingdom, where the company acquired the second-largest aircraft hangar in Europe within three weeks due to a more supportive operating environment. He contrasted this with Nigeria, where financing remains largely inaccessible.
He urged airlines to work more closely with local MROs to reduce maintenance-related capital flight, improve cost efficiency, and strengthen the local aviation value chain. With trust, cooperation and government-backed support, he said, Nigerian MROs can significantly reduce the country’s dependence on foreign facilities.
