The influx of new carriers into Nigeria’s aviation sector has triggered a surge in competition, keeping airfares stable across local destinations despite a sharp rise in the price of aviation fuel.
A wave of new airlines has emerged in recent months, including Pioneer Airlines, backed by the Bayelsa State Government; Binani Airlines, owned by Senator Aishatu Binani; K-Impex Airlines, promoted by a consortium of Northern businessmen; and Enugu Air, an initiative of the Enugu State Government.
Most recently, Gateway Airline announced the commencement of flight operations effective Monday, April 13, 2026. The carrier will service key routes including Iperu to Abuja, and connections from Abuja to Port Harcourt, Calabar, and Jos.
Meanwhile, Caliphate Air, backed by the Sokoto State Government, is preparing for a second-half 2026 launch. This initiative is expected to drive significant socio-economic gains for Sokoto and the wider Northwest region.
The airline has already secured its Air Transport Licence (ATL) and is currently finalizing its Air Operator Certificate (AOC) with the Nigeria Civil Aviation Authority (NCAA).
These new entrants join established local carriers including Air Peace, Arik Air, Ibom Air, Max Air, Xejet, Green Africa, United Nigeria Airlines, Aero Contractors, and ValueJet, all vying for a share of a market currently stunted by stagnant growth and diminished consumer purchasing power.
BusinessDay findings reveal that since the onset of the US-Iran conflict, aviation fuel prices have surged from N995 per litre in January 2026 to between N2,700 and N3,000 in recent weeks.
Given that aviation fuel accounts for over 40 percent of total operating costs, such a spike would typically trigger a sharp rise in fares. However, the aggressive competition among a growing number of airline all scrambling for a shrinking pool of passengers has kept ticket prices relatively low.
“New entrants into the aviation business tend to keep the fares low or tolerable since they need to attract passengers to themselves. We have to also notice that since the state governments own or are the primary promoters of these new airlines, they have a significant financial capacity to endear the air market to themselves,” Seyi Adewale, the chief executive officer of Mainstream Cargo Limited, told BusinessDay.
According to Adewale, Nigeria’s air capacity is still limited and air fleet is still few when compared to the need of the country, its population size, area or scope of coverage, and to that of similar countries.
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He said as a result of the gap, states are connecting the dots to their region in order to promote business, facilitate trade, access to other states (or even countries), invest in air infrastructure amidst increasing revenue, attract tourism, and possibly generate fair revenues.
“It appears no state wants to be left behind in development coupled with the fact that aviation creates jobs and other multiplier effects or impact on the state economy,” Adewale said.
Ibironke Rotimi-Olajide of Air Peace who also confirmed this situation, said that as new airlines are joining the market, the demand is getting lower with increase in supply.
“Right now, I think the demand is lower as new airlines are coming up; although they are coming with small number of aircraft. So, how do you match demand and supply? With all these airlines coming up, airlines hardly fill up their aircraft because of this depleting passenger traffic,” Rotimi-Olajide said.
BusinessDay findings show that an economy class return ticket from Lagos to Abuja between the months of April and May cost between N150, 000 to N158,000, showing a stable price since mid-January 2026. Within the same period last year when there were fewer airlines cost of ticket on the same route was between N200,000 to N220,000.
Also, an economy class return ticket from Lagos to Port Harcourt between the month of April and May cost between N150, 000 to N170,000, also showing a stable price since mid-January. The same route last year saw price surge to an average of N250,000.
An economy class round-trip flight from Lagos to Kano cost between N200,000 and N300,000 a sharp contrast from last year which sold for N350,000 or more for same route.
The same price stability is seen in other domestic routes, making it affordable to travel.
The NCAA disclosed that it has issued about eight Air Operator Certificate (AOC) recently which implies more local airlines would be gracing the Nigeria airspace.
Chris Ona Najomo, the director general and CEO of the NCAA in a recent interview said in six months time, there would be an influx of aeroplanes as new and existing airlines build capacity.
“I can tell you that we have issued between seven to eight AOCs recently. AOC issuance process usually takes between two to three years in the past but now within six to nine months, the process is completed without compromising safety,” Najomo said.
Olumide Ohunayo, industry analyst and director of research at Zenith Travels told BusinessDay that the influx of new airlines which the aviation sector is experiencing is as a result of states’ recent interest in aviation sector.
“Seeing the success story of Ibom Air which has served as a template for a state-run airline, most of the states are now doing same. States are not only working on the airlines but also owning airports.
“Enugu has started their own airline. Gateway of Ogun State has come up with the same initiative. With what we see, I think the idea is for them to have that control. In doing that, they are going beyond just having the airline but also having the airport to complement it,” Ohunayo said.
He stressed that airlines’ decision to reduce fares may not be sustainable on the long run because of operating costs but if local carries can come together to build critical mass, it would be more sustainable.
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