The aviation sector’s contribution to the gross domestic product appears to have decreased by 61.47 percent as a result of the currency and fuel crises that have beset it.
According to the most recent Q2 2022 GDP statistics from the National Bureau of Statistics, the sector’s nominal GDP output plunged from N84.73 billion in the first quarter to N32.65 billion during the second.
Serious worries have been raised regarding the millions of dollars that foreign airlines operating in the nation earned but were unable to remit home because of the global shortage.
Concerns have also been raised about the rising cost of jet fuel, which has increased operating expenses for local aircraft carriers. These crises have led to price increases and flight reductions by domestic and foreign airlines operating in the nation.
Allen Onyema, the chairman of Air Peace, recently revealed that over 70 airlines in Nigeria had ceased operations in the previous few years, and three more that were still operating might do so in the upcoming weeks.
He added that the primary factor currently capable of causing the operations of airlines to collapse is the high cost of aviation fuel, also known as Jet A1. He attributed the ongoing collapse of airlines in Nigeria to the increased expenses faced by airlines in the sector, among other concerns.
If the government does not handle the repatriation of the $464 million held in Nigeria, more airlines may cease flights to Nigeria, according to the International Air Transport Association, a global organization representing international airlines with headquarters in Switzerland.
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