This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 6/20/2016

Overview                                                                                            

Unit:   USD millions

 

2013
(estimated)

2014
(estimated)

2015
(estimated)

2016
(estimated)

Total Market Size

204,959

245,950

255,630

200,880

Total Local Production

0

0

0

0

Total Exports

0

0

0

0

Total Imports

204,959

245,950

255,630

200,880

Imports from the U.S.

163,967

196,760

198,770

195,009

Exchange rate Naira to 1 USD

160

160

160

200

 
Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources: 
Total Local Production:   n/a
Total Exports:   n/a
Total Imports:   Industry Association, importers and Aviators
Imports from U.S.:   U.S. Census Bureau

*Estimates based on qualitative research done with Industry contacts and Nigeria Civil Aviation Authority (NCAA) and Operators in aviation sector.
 
U.S. suppliers have potential in the Nigerian market as U.S.-origin equipment is preferred by Nigerian importers of aviation/avionics equipment due to its performance, reliability and durability.  Much of the equipment, such as the airport ground support equipment and metal detectors used locally, was purchased in the United States and 80 percent of aircraft operating in Nigeria are of U.S.-origin.  There are significant opportunities in the airport safety equipment market as Nigeria continues to upgrade its equipment and aviation infrastructure.  Baggage and passenger screening equipment procurements are one example of opportunities.

Besides commercial airlines with U.S.-origin aircraft in their fleet (mostly Boeing 737s – 700, 800 series, Cessna/Citation, MD8 series and Bell Helicopters) covering domestic and international routes, private owners’ aircraft (such as Cessna/Citation, Beechcraft, etc.) also support U.S. dominance of the aviation/avionics sector.  Even with this market leader position, additional opportunities exist to sell aircraft and support equipment and technology from the United State.

The Federal Aviation Administration of Nigeria (FAAN) has continued to actively upgrade airports and related infrastructure.  In 2016, the US Federal Aviation Administration (FAA) renewed Nigeria’s Category 1 Safety Status certifying that the Nigeria Civil Aviation Authority meets international aviation safety standards.  U.S. Transport Security Administration (TSA) continues its annual airport security assessment of the last departure point at the Murtala Muhammed International Airport, Lagos.  In March of 2016 the International Civil Aviation Organization (ICAO) announced said that Nigeria had passed its Universal Safety Oversight Audit Program (USOAP).  

The Federal Ministry of Transport continued restructuring the aviation industry this past year, which had been plagued by reductions in operational aircraft.  Additionally, aircraft of more than 21 years old are continuously grounded and there is an increase in the number of inspections as well as routine repairs and maintenance that are followed, regimentally.  The GON is still exploring mechanisms to facilitate the financing of up to 40 new aircraft for domestic and regional travel, and for the procurement of ground support equipment, passenger screening and navigational equipment.

Industry contacts are saying that new airline companies are coming to join the few operators in the industry and are considering the purchase of aircraft over the next few years.  Given historical preference for U.S-origin aircraft, this represents a significant opportunity for U.S. brands.

Nigerian aviation officials have made clear their interest in attracting international providers of maintenance, repair, and overhaul (MRO) facilities to develop local facilities and make Nigeria’s aviation service sector more competitive.  Lagos is considered by numerous aviation experts to be a natural aviation hub for the West Africa market.  There are other airports like the one in Abuja, Enugu, Port Harcourt, Kano and Kaduna.

The Nigerian Federal Ministry of Transport purchased and installed additional navigation and landing aids for Lagos, Abuja and Port Harcourt airports, as there has been a tremendous increase in air transportation in the country as a result of increase in passenger movements to the airports and airstrips for commercial activities and in general, across the geo-political zones in the country.  To date, 90 percent of the nation’s major airports (both domestic and international) have gone through one form of renovation or the other, and the GON continues to work to make Nigeria an important hub of aviation in West Africa.

The Ministry also has plans to procure additional navigational aids for airports across Nigeria with the objective of upgrading standards.  The Nigerian aviation industry has 24-hour full radar coverage of Lagos and Abuja International airports, covering 65 nautical miles around Lagos and 40 nautical miles around Abuja, while radar monitoring covers 100 nautical miles (approximately 160 kilometers radius) around the two airports. 

Subsector Best Prospects

With the Government focusing more attention on new aircraft, safety regulations and monitoring the operations of airlines in Nigeria, airline operators are purchasing fairly new aircraft, as well as wet-leasing U.S. origin aircraft including the supply of spares, parts and services.

All grounded military and civilian aircraft will need replacement of engines, component parts and navigational equipment from U.S. sources. 

Opportunities

Some airline operators, in anticipation of increased patronage, are seeking serviceable but reliable aircraft (particularly Boeing planes for scheduled flights and Cessna for charter services) to augment their fleets, and the U.S. aviation market is their preferred source. 

Significant opportunities remain in the navigational, ground support and passenger screening categories, along with possibilities for a wide variety of equipment like:   metal and bomb detectors as well as services.

Web Resources

http://www.nigeria-consulate-ny.org/business/e_transport_sector.htm

FAAN

For more sector information, e-mail:  Ibrahim Ibrahim H., U.S. Commercial Service, U.S. Consulate General, Lagos, Nigeria at Ibrahim.Ibrahim@trade.gov.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.


More Information

Nigeria Aerospace and Defense Trade Development and Promotion