Business Report

Nigeria positions itself for an aerospace manufacturing breakthrough

Sesona Mdlokovana|Published

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Nigeria is strategically positioning itself for a breakthrough in aerospace manufacturing, driven by a clear economic rationale. The country's air traffic, which reached 15.89 million passengers in 2023, is projected to grow significantly to 25.7 million by 2029. This creates a strong domestic market for essential aerospace services, including maintenance, repair, and overhaul (MRO), as well as for the production of non-critical aircraft components.

By localising even a small portion of activities such as component machining, composite fabrication, and spares production, Nigeria can begin to capture value that currently leaves the country for foreign workshops. This is critical, as Nigerian airlines collectively spend approximately $200 million annually on overseas maintenance. Establishing a domestic manufacturing ecosystem would not only substantially reduce this capital flight but would also stimulate upstream industries and create much-needed high-skilled engineering employment.

Infrastructure, regulation and the enabling environment

Nigeria is signaling a strong commitment to modernizing its aviation sector, which is essential for supporting aerospace manufacturing. Key government reforms, such as the major refurbishment of Murtala Muhammed Airport (a ₦712 billion investment), simultaneous upgrades at six other major airports, and improved runway infrastructure, are actively reducing investment barriers. Crucially, Nigeria's significantly improved compliance with the Cape Town Convention is boosting investor confidence. This is achieved through enhanced aircraft registry processes, more explicit leasing frameworks, and stricter safety oversight, together creating a robust, finance-friendly environment necessary for attracting and scaling capital-intensive aerospace manufacturing operations.

Nigeria's recent advancements in surveillance, navigation, and digitalization within its airspace demonstrate a system increasingly adhering to global standards. These reforms are comparable to the initial steps taken by markets such as the UAE and Singapore. These nations first established internationally trusted regulatory frameworks, a prerequisite for later scaling operations into component manufacturing to build their international reputations.

Stepwise pathways to local production

Nigeria's aerospace sector is strategically targeting component manufacturing, rather than immediate full aircraft production. This emerging path aligns with the development of other growing aerospace economies. The initial strategy focuses on certifiable component machining, cabin interiors, non-load-bearing composite panels, and the manufacture of Maintenance, Repair, and Overhaul (MRO) consumables. As the framework for certification and the expertise of local engineers and suppliers mature, the industry can then logically expand into producing more complex, higher-value subassemblies.

This phased approach is bolstered by the ongoing growth of Maintenance, Repair, and Overhaul (MRO) operations. New hubs are being developed in Lagos and Abuja by Aero Contractors and XEJet, which serves to reinforce the domestic aircraft servicing infrastructure. Furthermore, international collaborations, some of which are investigating local sourcing for parts and specialised tooling, underscore Nigeria's potential for seamless integration into worldwide supply chains. This strategy mirrors the successful model of Morocco, which initially attracted significant aerospace companies by concentrating on expertise in precision machining and the production of wiring harnesses.

Connectivity gains and regional ambitions

Nigeria's expanding connectivity bolsters its manufacturing aspirations, particularly in the aerospace sector. Recent developments, such as the resumption of Air Peace's Lagos–London service, the return of Emirates and Uganda Airlines, and new Bilateral Air Services Agreements, have significantly enlarged the country's aviation footprint. This resulting increase in aircraft traffic into Nigeria strengthens the business case for establishing reliable local suppliers. These local manufacturers are positioned to offer faster aircraft turnarounds than more distant international alternatives.

Nigeria, under Tinubu's leadership, is committed to establishing itself as West Africa's leading aviation hub, driven by the sector's current 2.5 per cent contribution to GDP. This strategic goal involves creating a comprehensive, self-sustaining aviation ecosystem through several key initiatives: expanding aviation training facilities, encouraging greater private-sector participation via concessions, and developing dedicated aviation city projects.

A bold but realistic industrial vision

The Nigerian International Airshow, as characterized by Minister Festus Keyamo, serves as a "bold declaration that Nigeria is ready to lead, innovate, and compete." This event signifies the nation's long-term industrial ambition, underpinned by a strategic, incremental approach. This strategy focuses on several key areas: consolidating regulatory credibility, modernising infrastructure, deepening international partnerships, and gradually scaling technical capabilities.

With successful execution of its vision, Nigeria stands to transform its role from a significant consumer of global aerospace services to an emerging producer. This shift could enable the country to secure regional supply chains, decrease its reliance on foreign maintenance, and establish itself as a meaningful participant in the global aviation sector. The inaugural Nigerian airshow, much like major international airshows that highlight national industrial strengths, serves as a strong indication that the nation is nearing its moment on the manufacturing stage.

 

Written By: 

*Sesona Mdlokovana

Associate at BRICS+ Consulting Group 

Africa Specialist

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