Nigeria - Aerospace/Aviation/AvionicsNigeria - Aerospace/Aviation/Avionics

Overview 

Unit: USD millions 

Total Market  
Size = (Total Local Production + Total Imports) – (Total Exports) 
Data Sources: 
Total Local Production: n/a 
Total Exports: n/a 
Total Imports: Industry Association, importers and Aviators 
Imports from U.S.: U.S. Census Bureau 
Nigeria National Bureau of Statistics 
  
*Estimates based on qualitative research done with Industry contacts and Nigeria Civil Aviation Authority (NCAA) and Operators in aviation sector. 

U.S. equipment manufacturers and suppliers continue to have potential for growth in the Nigerian market with preference for U.S.-origin equipment preferred by Nigerian consumers of aviation/avionics equipment due to its quality, performance, reliability, and durability. 
Much of the equipment such as the airport ground support systems and metal detectors used locally are purchased from the United States and approximately 80% of aircraft operating within the Nigerian airspace are of U.S. origin.  There are significant opportunities in the airport safety equipment market as Nigeria continues to place emphasis on air safety and security, keep in compliance with the International Civil Aviation Organization (ICAO) requirements on maintaining its International Airspace, and upgrading its equipment and aviation infrastructure. In keeping with this, in December 2018, the Managing Director of Nigerian Airspace Management Authority (NAMA), Captain Fola Akinkuotu, announced a planned upgrade to the Category 3 (CAT-3) Instrument Landing Systems at the Abuja and Lagos airports to enhance the capacity of pilots to land airplanes in low visibility. Nigeria currently has a Category 2 (CAT-2) Instrument Landing System installed. He mentioned that the planned upgrades were to be carried out in phases, with Abuja and Lagos given priority due to the amount of traffic each received and was projected to receive daily. This was to be followed by Kano, and the other airports across the country. Though no public tender was made for the procurement, delivery and installation of the CAT-3 Instrument Landing System, could be an immediate opportunity where U.S. companies can bid and compete. Baggage and passenger screening equipment procurements are also examples of opportunities where currently there is still room for improvement, both in the areas of capacity building and functional, state-of-the-art infrastructure. There has been a steady increase in the number of inspections as well as routine repairs and maintenance that are followed regimentally.  Federal Airports Authority of Nigeria (FAAN) has continued to actively upgrade airports and related infrastructure, including the March 2017 upgrade of the international airport in Abuja, and the recent certification of the Murtala Muhammed International Airport in Lagos. Organizational changes at Nigerian Civil Aviation Authority (NCAA) and Accident Investigation Bureau (AIB) have also led to security improvements to the benefit of aircraft and passengers. 
U.S.-origin aircraft continue to represent over 80% of the aviation market in Nigeria at this time.  In addition to commercial airlines with U.S.- origin aircraft in their fleet (mostly Boeing 737s – 700, 800 series, Boeing 777s – 300 series, Gulfstream Jets – 500 and 600 series, and Bell Helicopters) covering domestic and international routes, private owners’ aircraft (such as Cessna/Citation, Beechcraft, etc.) also support U.S. dominance of the aviation/avionics sector. Industry statistics show that at least 3 out of every 5 aircraft is manufactured by Boeing Commercial Airplanes, either bought new and direct from Boeing, or bought used from an airline or dealer. In 2018, record deals were signed between the U.S. leading aircraft manufacturer, Boeing, and the foremost commercial aviation operator in Nigeria. This singular deal, in addition to other deals signed across the African region, in the Middle East, and globally, positioned the aircraft manufacturer as the market leader in the manufacture and supply of commercial aircrafts in the world. The Nigerian deal marked the first deal in several years where money was being paid to an aircraft manufacturer for the sale of new aircraft. Even with this market leader position, additional opportunities continue to exist to sell aircraft to other existing operators who are looking to increase or retire their fleet, expand operations, and increase market share. Opportunities also exist in the area of supply and installation/training on the use of support equipment, as well as technology from the U.S.; radar guidance systems; flight simulators, and Global Aircraft Monitoring Solutions. Asides from commercial operators, the Government of Nigeria remains a large consumer of aviation/avionics equipment as it is required by the various security agencies within the country for varying needs; fight against insurgency/terrorism; policing the nation’s vast borders; personnel training and capacity building; and haulage of goods and personnel.  

Airspace and passenger safety, as well as employee satisfaction remain top priority to ensure efficiency within the sector. As a result of safety issues and concerns regarding enforcement of regular maintenance inspections in previous years, the aviation industry continues to focus on reorganization/restructuring, capacity building, staff empowerment, welfare, and merit-based promotions.
Additional steps taken to ensure compliance with industry regulations include the issuance of fines and suspension of Air Operating Certificates (AOC) of errant scheduled and non-scheduled airline operators depending on the nature of the infraction; non-implementation of training programs for maintenance personnel as required; irregularities concerning helicopter flight identification; deliberate violation of regulations; performing maintenance programs without necessary approval; and using outdated manuals. In 2018, four airlines were sanctioned, while one airline had its AOC suspended for 180 days. Other industry policies adopted by the sector watchdog include placing age restrictions on aircrafts being purchased by airline operators. Under the Nigerian Civil Aviation Authority (NCAA) guidelines, no airline operator should purchase an aircraft older than 22 years of age, all operators should conduct quarterly training of its employees (depending on their class) and submit such reports in a timely manner, conducting and pre-scheduling A, B, C or D aircraft maintenance checks (as may be required) and submit copies for record keeping. These developments are geared to improve the opportunities for U.S. origin service providers to compete in opportunities provided by the policy inclusions. The Government of Nigeria as part of its focus on safety recently approved the purchase of an aircraft firefighting simulator valued at approximately $14 million. This equipment will be located at the Nigerian College of Aviation Technology (NCAT),
Zaria, to train airport firefighters. 

The Federal Ministry of Aviation (under the jurisdiction of the Federal Ministry of Transportation) continues to restructure the aviation industry which has been plagued by reductions in operational aircrafts, a lack of a functional Maintenance, Repair and Overhaul (MRO) facility, and inconsistent, unreliable passenger service. The Government of Nigeria is still exploring mechanisms to facilitate the financing of up to 415 new aircraft for domestic and regional travel, for the procurement of ground support equipment, passenger screening and navigational equipment. The recent upgrades in operational equipment for Kaduna, Minna, and Abuja airports in Nigeria led to demands for all other airports in Nigeria to be upgraded with focus on deploying U.S.-origin ground support and navigational equipment. The Nigerian Federal Ministry of Transport purchased and installed additional navigation and landing aids for Lagos, Abuja, Kaduna, and Port Harcourt airports .  The country has seen an increase in air transportation in the country because of increased commercial activities across the geo-political zones in the country.  To date, over 90% of the nation’s major airports (both domestic and international) have one form of renovation or another, and the Government of Nigeria continues to work to make Nigeria an important hub for aviation in West Africa with regional partners creating hubs in Nigeria. 

Historically, new and existing airline operators have shown a preference for U.S.- origin aircraft, thus presenting a significant opportunity for U.S. brands. Nigerian aviation officials have made clear their interest in attracting international providers of Maintenance, Repair, and Overhaul (MRO) facilities to develop local facilities, increase local content, and make Nigeria’s aviation service sector more competitive.  Several state governments are also exploring developing indigenous airlines and setting up MRO facilities, and have also shown continued interests in aviation/avionics equipment from U.S. entities; however, the state-funded MRO viability at this time is questionable. The Akwa Ibom state government recently floated its indigenous airline located in Uyo, with several other state governments towing a similar path, thus creating an opportunity to outrightly sell, wet or dry lease aircraft to help power their operations, build airports and provide airport infrastructure, including ground support equipment, and related equipment. Currently, international firms (including U.S.) are being considered for an MRO contract in Nigeria which will further open ways for more U.S. companies to come to Nigeria, though funding thus far has not materialized. The decision to establish an MRO, either funded solely by the Government of Nigeria, private airline operators or by airline manufacturers, may be hinged on the approval and take-off of the planned Government of Nigeria National Carrier which is yet to receive assent by the Government’s Federal Executive Council (FEC), the country’s highest decision-making body. 

Nigeria’s “Category 1” safety status (United States FAA certification) permits Nigerian air carriers direct flight access to the United States.  This potentially opens more opportunities for U.S. origin equipment to be marketed in Nigeria as domestic Nigerian airlines continue to express interests in routes to the U.S. 
 

Leading Sub-Sectors 

With the government focusing more attention on setting up a national carrier, purchasing new aircraft for operations, safety regulations and monitoring the operations of airlines in Nigeria, airline operators are purchasing fairly new aircraft, as well as wet-leasing U.S.-origin aircraft including the supply of spares, parts and services. In addition, currently grounded military (which are still in serviceable conditions) and civilian aircraft would need replacement of engines, component parts and navigational equipment from U.S. sources and of interest are the C130 Hercules Military aircraft numbering over 13 that Boeing, GE, and other aircraft servicing companies may focus on.   
 

Opportunities 

Some airline operators, in anticipation of increased patronage, are seeking serviceable but reliable aircraft (particularly Boeing planes for scheduled flights and Bell, Cessna, Gulfstream and others for charter services) to augment their fleets, as the U.S. aviation market is their preferred source.   

Significant opportunities remain in the navigational, ground support, and passenger screening categories, along with possibilities for a wide variety of equipment like: metal, bomb detectors and body scanners as well as services. 

Training and capacity building opportunities still exist for local airline operators operating certain classes of aircrafts within their fleet. 

Web Resources 

Nigeria Consulate 
Business Daily Online 
Punch Newspaper Online – Aircraft Fire Simulator
Punch Newspaper Online – Passengers through Airports
Punch Newspaper Online – Tucano Aircraft
Punch Newspaper Online – Akwa Ibon Airline
Punch Newspaper Online – Passenger Increases
Punch Newspaper Online – Landing Systems Upgrades
Punch Newspaper Online – NCAA Fines Airlines
Channels Television News Online
FAAN 
NCAA 

For more sector information, e-mail: Adesina Anthony A., U.S. Commercial Service, U.S. Consulate General, Lagos, Nigeria at Anthony.Adesina@trade.gov