Aviation Sector Growth Dips to 2.88 Percent Amid Rising Airfares in Nigeria

Aviation Sector Growth Dips to 2.88 Percent Amid Rising Airfares in Nigeria

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3 months ago

Nigeria’s aviation industry experienced a slowdown in growth, recording a modest 2.88 percent increase in the third quarter of 2025, according to the latest report from the National Bureau of Statistics. Despite the slower rate, the industry’s output value rose from N78.71 billion in Q3 2024 to N80.98 billion in the same quarter of 2025, indicating continued production expansion. However, the sector’s contribution to the country's gross domestic product (GDP) slightly declined, accounting for 0.07 percent in Q3 2025, down from 0.08 percent a year earlier.

The quarterly performance has been volatile, with a sharp decline between Q1 and Q2 2025, followed by a significant rebound in Q3. The overall economic picture shows that the aviation sector has moved from contraction in 2024 to a slow recovery in 2025. Meanwhile, Nigeria’s total GDP at current basic prices increased from N96.16 trillion in Q3 2024 to N113.59 trillion in Q3 2025, reflecting broader economic growth.

Rising Airfares Prompt Government Action

Travelers ahead of the holiday season are experiencing high ticket prices, with some fares increasing by more than 150 percent on certain domestic routes. In response, Nigeria’s Senate has summoned key aviation stakeholders to address concerns over escalating costs, which are now making domestic air travel less affordable. Senator Buhari Abdulfatai voiced fears that the surge in airfare prices could disrupt holiday travel plans for many Nigerians, as fares for routes like Abuja to Lagos now exceed N500,000—far above pre-holiday levels.

Officials are calling for urgent regulatory and industry responses to stabilize fares and support economic recovery in the sector. The situation underscores ongoing challenges faced by Nigerian airlines amid rising operational expenses and demand pressures, even as the industry begins to recover from negative growth experienced in 2024.

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Airspace Times Team

Aviation Content Creator

Published: 13 Dec 2025

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