The year 2023 saw a decline in air passenger traffic in Nigeria, with the total number of passengers passing through airports dropping to 15.89 million compared to 16.17 million in 2022.
The decrease has been attributed to various factors, including economic challenges, rising airfares, and the ‘Japa’ wave – a trend where Nigerians, particularly in the lower middle class, relocate abroad.
Stakeholders and travel agents have pointed to several reasons for the drop in passenger numbers.
The continuous increase in airfares, exacerbated by the low purchasing power of Nigerians, inflation rates, and airlines’ trapped funds, has made air travel less accessible for many.
Additionally, the depreciation of the naira and the removal of fuel subsidies have further contributed to the financial strain on travellers.
Data from the Nigeria Civil Aviation Authority (NCAA) revealed that outbound travel was higher than inbound travel in 2023, indicating a significant impact of the ‘Japa’ wave.
Despite the high cost of tickets, many Nigerians continued to leave the country, while students, companies, and business travellers reduced their travel due to increased fares.
Seyi Adewale, CEO of Mainstream Cargo Limited, noted the significance of the drop in passenger numbers, attributing it to the relocation of active travellers and eroded disposable income due to naira depreciation.
He highlighted the impact of high airfares on both leisure and business travel, leading to cost-saving strategies by businesses.
His words: ”The rise in airfares over the past two years, amounting to over 400 per cent, has been driven by accumulating trapped funds of foreign airlines in Nigeria caused by foreign exchange rate fluctuations.
”Airlines have resorted to blocking low ticket inventories and selling higher-priced tickets in naira only, further inflating prices.
”Travel agents have witnessed a significant shift in travel patterns, with travel becoming a necessity rather than a luxury, even for the elites.”
Despite the challenges, there is optimism for improvement in 2024, with expectations of better monetary policies and foreign direct investments.
Olumide Ohunayo, an industry analyst, stressed the need for government intervention to cushion the effects of subsidy removal and encourage domestic airlines to operate international routes.
”The decline in air passenger traffic underscores the broader economic challenges facing Nigeria and the aviation industry.
”But, there is a collective hope for a recovery in air travel and a return to sustainable growth in the sector,” he stated.