Fidelity Bank Group Managing Director/CEO, Nneka Onyeali-Ikpe, has called on the Federal Government to create specialised funding windows to bridge the over $25 billion financing gap threatening the growth of Nigeria’s aviation sector.
Onyeali-Ikpe made the call during a session at the Nigeria International Air Show at the Nnamdi Azikiwe International Airport, Abuja. She said commercial lending rates tied to the Monetary Policy Rate (MPR) were unsustainable for airlines that rely heavily on loans to acquire aircraft and maintain operations.
“We have been advocating that an aviation fund should be initiated from the Cash Reserve Ratio (CRR). We have requested that funding for airlines come out of the CRR,” she said.
The Fidelity Bank chief argued that aviation, as an essential industry, deserves access to special interest rates and tailored financing structures to support fleet acquisition, maintenance, and infrastructure upgrades.
She noted that aircraft acquisition can cost as much as $80 million per aircraft, making it difficult for operators to survive without government intervention.
Onyeali-Ikpe explained that the bank’s renewed support for the sector followed its successful partnership with Air Peace, which she described as the bank’s “test case.” She said Air Peace’s financial discipline, corporate governance and resilience helped rebuild lender confidence after earlier industry collapses eroded appetite for aviation loans.
“Today, we can support at least 500 airlines fully, and 10 through their vendors, because our test case succeeded,” she said.
The Fidelity Bank CEO highlighted the economic relevance of aviation, citing 86 domestic flights, 216,000 jobs, and more than 16 million passengers currently being served in the Nigerian market. “There’s no way we can allow the industry to die,” she added.
She further highlighted that African airlines face an enormous financing deficit for fleet renewal, maintenance, repair and overhaul (MRO) facilities, airport upgrades and digital infrastructure, estimating the continent’s needs at about $25 billion.
She stressed that inadequate fleet capacity has made travel within Africa difficult, with passengers sometimes spending two days on journeys that should take five hours.
According to her, predictable foreign-exchange management has recently improved operators’ financial planning, following government policies that have stabilised the naira.
Onyeali-Ikpe urged airlines seeking funding to adopt strong corporate governance, financial transparency and operational discipline. She said banks must meet international audit standards and have credible boards composed of industry experts to ensure safety and protect public interest.
“We cannot afford a situation where airlines are run like family businesses. These are companies carrying 250 people at a time; governance must reflect that responsibility,” she said.
She added that banks prefer long-term partnerships with transparent operators, citing how financial institutions supported clients during the COVID-19 pandemic by restructuring facilities to keep airlines afloat.
Onyeali-Ikpe maintained that specialised aviation funds remained the most effective route to building a resilient sector capable of meeting Nigeria and Africa’s growing air transport needs.
