FAAN MD says “2–3 Local Airlines to Receive Support as Nigerian Flag Carriers”

The Managing Director of the Federal Airports Authority of Nigeria (FAAN), Mrs. Olubunmi Kuku, has said that two to three local airlines will receive support to emerge as Nigerian flag carriers.

The disclosure was made during the Q1 Business Breakfast Meeting of the Aviation Safety Round Table Initiative held during the week, as contained in an X post on the FAAN MD’s account.

Kuku did not, however, mention the specific airlines to benefit from the initiative. The planned support is aimed at strengthening indigenous carriers and positioning Nigeria’s aviation sector for improved global competitiveness.

The development is notable as most local airlines currently operate primarily domestic routes, with local carrier Air Peace standing out as a key operator on international routes.

What they are saying 

The FAAN MD said the initiative is expected to significantly enhance both passenger and cargo traffic across Nigeria’s aviation network.

• “Earlier today, at the Q1 Business Breakfast Meeting of the Aviation Safety Round Table Initiative, FAAN MD/CE Mrs Olubunmi Kuku emphasised strategic support for 2–3 Nigerian airlines to become National Flag Carriers, a move expected to boost passenger and cargo traffic.” 

She noted that strengthening local airlines to operate at a national carrier level would unlock greater value across the aviation ecosystem.

More insights 

Kuku highlighted that beyond airline support, FAAN is implementing broader infrastructure and operational upgrades to improve efficiency and passenger experience.

• Ongoing efforts to improve passenger experience at the Murtala Muhammed International Airport (MMIA).
• Plans to develop modern cargo terminals and cold-chain systems to support air freight operations.
• Moves to position Nigeria as a Maintenance, Repair, and Overhaul (MRO) hub to retain aviation value within the country.
• Planned deployment of advanced systems such as upgraded airfield lighting and the Advanced Surface Movement Guidance and Control System (A-SMGCS).

She added that these initiatives are designed to strengthen Nigeria’s aviation ecosystem and support growing demand across passenger and cargo segments.

Backstory 

The move to support two to three airlines comes more than two years after the suspension of Nigeria Air, the country’s proposed national carrier, launched in 2023.

• The Nigeria Air project was initiated under former President Muhammadu Buhari to revive the defunct Nigerian Airways.
• It was launched in May 2023, with Ethiopian Airlines holding a 49% stake, while the Federal Government held 5%, SAHCO 15%, and other investors 31%.
• By June 2023, the House of Representatives flagged the process as fraudulent, leading to its suspension.

In May 2024, Aviation Minister Festus Keyamo announced the project’s indefinite suspension, while former minister Hadi Sirika faces prosecution over alleged fraud.

What you should know 

The Minister of Aviation and Aerospace Development, Festus Keyamo, has consistently criticised the Nigeria Air arrangement, particularly its structure with Ethiopian Airlines.

• The deal would have required Nigeria to pay about $112 million over three years for the use of Ethiopian Airlines’ aircraft.
• Ethiopian Airlines held a 49% stake, effectively giving it significant control over the proposed national carrier.
• Key management roles, including the CEO and the CFO, were to be controlled by
• Ethiopian Airlines.

The agreement also included provisions such as tax exemptions and indemnities that could shift financial risks to Nigeria, the Minister claimed.

Keyamo has maintained that the arrangement would have disproportionately favoured Ethiopian Airlines, with more benefits flowing out of Nigeria than into the domestic aviation sector.