The West Coast has become an attractive frontier for Nigerian airlines, driven by limited competition on routes and a more predictable naira-dollar exchange rate that allows carriers to earn revenues in hard currency.
United Nigeria Airlines is the latest entrant, launching commercial flights from Abuja to Accra and becoming the fourth Nigerian carrier on the route after Air Peace, Overland Airways and Ibom Air. Overland also operates flights to Cotonou, Lomé and Niamey, while Air Peace and Ibom Air fly to Accra from Lagos.
Foreign airlines currently competing with local carriers on west coast routes are African World Airlines (AWA), based in Accra, and Aski Airlines, based in Lome, which operates flights from both Lagos and Abuja. AWA operates two frequencies in Lagos, with plans to expand its operations to three times daily.
Also read: FG to set up aircraft leasing company to support local airlines
Industry stakeholders attribute the influx of local airlines into the West Coast region to the stability of the naira, making it easier for carriers to predict their costs and revenues and take advantage of other sources of income.
Olumide Ohunayo, research director at Zenith Travels, said the combination of huge market gaps and exchange rate stability was attracting local carriers back.
Ohunayo explained that historically, Nigerian airlines dominated the west coast, but at the same time, the exchange rate crisis forced some airlines to suspend operations in the region.
“What the airlines have done is return to the West Coast. When you add the West Coast to your domestic routes, you are pushing yourself into a position where you can get partnerships and commercial collaborations, which can include bringing in passengers from international flights. From there, the airlines can develop into alliances with operators outside Nigeria,” he explained.
Ohunayo said the data showed that Accra is the second international route with the most Nigerian passengers, noting that there are a lot of Nigerians in other West Coast countries.
He stressed that for local airlines to be successful on the route, the Nigeria Civil Aviation Authority (NCAA) needs to grant international permits to airports other than Lagos and Abuja to operate regional flights.
ALSO READ: FG reaffirms support for local airlines as Air Peace launches Abuja-London flight
Chairman of United Nigeria Airlines, Obiora Okonkwo, said the most attractive route in West Africa is the Nigeria-Ghana route, estimating that the route carries about 50 percent of passengers from the entire region.
He said, “The traffic from Nigeria to Accra is higher than all other regional flights combined. Fifty percent of the traffic is between Nigeria and Accra. So, it can be estimated at over 200,000 passengers per year. So, it is still a place to compete. The second thing is that we have to be as reasonable and fair as possible with our pricing and costs.”
The findings show that Aski is currently the dominant airline on the West Coast. From the days of Nigeria Airways Limited to Bellevue and then Virgin Nigeria Airways, this used to be the strength of Nigerian airlines. After that period, Nigeria started losing the market.
In Abuja, AWA and United Nigeria Airlines fly directly from Lagos to Accra, while Aski takes passengers to Lome and then connects them to Accra.
Asky connects passengers from one point to another, connecting Abuja passengers to Abidjan, Dakar, Gambia, Freetown and others in Abuja and Lagos.
Currently, Air Peace flies to at least nine regional destinations in West and Central Africa, including Abidjan, Accra, Banjul, Dakar, Douala, Freetown, Monrovia and others.
CEO of Mainstream Cargo Limited, Seyi Adewale, said Nigerian airlines looking to expand into West Africa have identified strong passenger, cargo and courier demand on these routes. Regional connectivity, he said, also positions them to feed passengers into long-haul carriers, provided their schedules are well aligned.
Also read: Only 5 out of 23 local airlines control 75% of air traffic in Nigeria-Rewane
Adewale said a major advantage for airlines on regional routes is the ability to transport and deliver passengers from the regions to larger carriers on long-haul flights.
“These require greater planning and coordination. They can also take advantage of poor air cargo availability within the region,” he said.
Former Rector of the Nigerian College of Aviation Technology (NCAT), Samuel Colchrick, said foreign exchange earnings are the main motivation for local airlines operating into the West Coast region, adding that apart from workers' remuneration and office rental, most of the costs are in foreign exchange.
