Nigerian airlines are losing billions of naira every year due to deep-rooted regulatory and infrastructural inefficiencies that consistently undermine their ability to operate profitably, the Managing Director/Chief Executive of Aero Contractors Nigeria Limited, Captain Ado Sanusi, has warned.
Speaking during a panel session on “Airline Profitability and Cost Optimization” at the FAAN National Aviation Conference (FNAC) held at Eko Hotel, Lagos, Sanusi said the combined operational shortcomings of FAAN, NCAA, NAMA and NIMET push airlines into persistent losses, even as the public routinely blames operators for delays and disruptions.
He explained that long airport-processing queues caused by infrastructure gaps often result in one- or two-hour delays. Yet, the financial burden ultimately falls on airlines, which must pay compensation under NCAA consumer protection rules despite having little control over the cause of those delays.
Sanusi also highlighted the cost impact of diversions triggered by late or inaccurate weather information.
“If I take off from Abuja with a full load and halfway into the flight they tell me Calabar weather is bad, I have to return to Abuja. That eats directly into my profit,” he said.
He further faulted NAMA’s practice of assigning cadet air traffic controllers during peak periods, noting that extended airborne holding patterns translate into wasted fuel and increased operating expenses.
“These inefficiencies collectively make airlines non-profitable,” he said.
Sanusi stressed the need for a comprehensive, long-term aviation sector reform, saying the industry cannot continue to rely on fragmented roadmaps or short-term ministerial agendas. He recommended a 20–30-year national strategy aimed at sustainability and infrastructure modernization.
On technology adoption, the Aero Contractors boss said the airline is investing in digital tools such as paperless maintenance work cards, iPad-based documentation, Electronic Flight Bags (EFBs) and AI-driven systems. However, he noted that uptake is slowed by regulatory limitations.
“The regulator must approve everything—even an iPad in the cockpit. They ask, ‘Where is your manual?’ You say it’s in the iPad, and they ask, ‘What if the iPad dies?’ These are the realities we face,” he said, emphasizing the need for regulators to evolve alongside operators.
He also urged government to adopt a unified, predictable taxation framework to replace the multiple levies that currently weigh heavily on airlines.
“We are not asking to be exempted from taxes,” he said. “But you cannot tax airlines to death. What we need is good policy—balanced, predictable and supportive of sustainable growth.”
Sanusi commended the carriers that have managed to remain profitable despite what he described as a “harsh environment,” insisting that meaningful, long-term reforms are essential if the industry is to achieve sustainable growth.
