Financial strategist and aviation analyst, Mary Olowo-Soyeke, has highlighted powerful strategic financial options as the urgent need for innovative funding models to aid the growth of Nigeria airline industry and unlock its long-term potential.
Olowo-Soyeke, who made this known at the 29th Conference of the League of Airport and Aviation Correspondents LAAC in lagos, represented the President of Sabre Network, Dr. Gabriel Olowo, at the Conference themed ‘Aviation Financing in Nigeria: The Risks, Opportunities and Prospects’.
Olowo-Soyeke in her paper presentation titled “Financing Options for a Sustainable Aviation Future,” disclosed that Nigeria is ranked 48 per cent on-time performance (OTP) rate for domestic airlines which is far below the global average of 81 per cent.
She noted that though the growth in passenger traffic and aircraft numbers is quiet encouraging, but warned that systemic inefficiencies, ageing fleets, and infrastructure limitations continue to hinder progress.
She said “Aviation is the lifeblood of global trade, tourism, and innovation, but without fuel from financing, it cannot fly”
She however proposed proposed five strategic options, setting the tone for a deep dive into financing mechanisms tailored to Nigeria’s unique challenges.
In her presentation, she outlined a wide spectrum of financing options, including: Traditional Loans & Leasing Models under which comes Dry, Wet, and Damp Leases offering flexibility and better cash flow management
Capital Market Instruments which entails Equity financing through IPOs and debt financing via bonds and institutional loans
Asset-Backed Financing & Sale-Leaseback, a model that unlocks liquidity by leveraging aircraft assets
Export Credit-Backed Financing – mitigating lender risk through support from Export Credit Agencies (ECAs).
Olowo-Soyeke also highlighted Nigeria-specific interventions such as the Power and Airline Intervention Fund (PAIF) and the Central Bank of Nigeria’s N300 billion support funds, emphasising the need for targeted, transparent deployment of these resources.
She noted the need for Legal and Regulatory Compliance, as a cornerstone of sustainable financing, with aircraft mortgages, contractual assignments, and adherence to the Nigerian Civil Aviation Regulations 2023 (NCAR 2023) being non-negotiable.
Olowo-Soyeke while referring Dr. Olowo’s book on “Cutting Cost Without Cutting Corners” maintained that ethics takes precedent over profit. Therefore, she urged airlines to resist compromising safety, training, and maintenance in pursuit of profit.
“The decision between what is right and what is convenient defines the future of aviation in Nigeria”,
With at least 14 Nigerian airlines defunct since 1990, Olowo-Soyeke’s presentation served as both a wake-up call and a roadmap.
She stated that “Without strategic financing, operational discipline, and ethical leadership, Nigeria’s aviation sector risks stagnation”
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