Shrinking Pie: The dangerous economics of Nigerian airlines

Shrinking Pie: The dangerous economics of Nigerian airlines

While multi-airline competition theoretically benefits consumers, the sheer volume of operating certificates in a capital-constrained environment creates severe market distortions. WOLE SHADARE x-rays the yield dilution and hyper-competition crisis facing Nigeria’s domestic carriers The rapid expansion of Nigeria’s domestic aviation sector, marked by a growing list of private startups and sub-national state carriers, is colliding directly with macroeconomic realities. The continuous entry of new domestic carriers into Nigeria’s air transport market presents an economic anomaly. While open-market…

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