The Nigerian transportation sector in 2024 was marked by a mix of progress and setbacks, with key events shaping the landscape across roads, rail, and aviation.
From ambitious infrastructure projects and policy shifts to disruptions and controversies, the sector has been a focal point of national attention.
While some initiatives aimed at enhancing connectivity and operational efficiency made notable strides, challenges remained, testing the resilience of the country’s transport systems.
As the year comes to a close, these developments highlight the complexities of transforming Nigeria’s transportation infrastructure in a rapidly evolving economic and political climate.
Q1 2024
- FEC approves construction of Lagos-Calabar Coastal Highway to Hitech
Context: In February 2024, the Federal Executive Council (FEC), chaired by President Bola Tinubu, approved the construction of the Lagos-Port Harcourt-Calabar Coastal Superhighway. Messrs Hitech Construction Africa was entrusted with the project, to begin with the 47-kilometer Phase 1 in Lagos State.
The highway, spanning 700 kilometers across nine states, aims to enhance connectivity and economic growth along Nigeria’s coastline. The initial design includes 10 lanes, with dual rail lines running through the center of the main carriageways, and 11-inch-thick concrete roads reinforced with 20-millimeter steel.
Why it matters: This is the first large-scale project approved by FEC under President Tinubu’s administration. However, it sparked controversy as the Minister of Works had announced the contract award to Hitech five months before FEC’s official approval, raising concerns about the transparency of the procurement process.
Since the contract was awarded on an EPC+F model, where the contractor will provide most of the funding alongside federal government counterpart funding, the road will be tolled to recoup the investment.
- Gov. Sanwo-Olu procures additional rail stock for Red and Blue line operations
Context: In February 2024, Governor Babajide Sanwo-Olu of Lagos State announced the procurement of additional rolling stock for the Blue Line and Red Line rail operations. These rolling stocks were projected to arrive from China before the end of 2024, following an agreement with the China Civil Engineering Construction Corporation (CCECC).
The announcement came weeks before President Bola Tinubu was set to commission the first phase of the Red Line, and months after the Blue Line Phase 1 began operations in September 2023.
Why it matters: Experts emphasize that the success of rail systems globally hinges on improved service efficiency, which is directly tied to the availability of trains. More rolling stock is crucial for increasing service frequency and meeting growing commuter demand.
Unfortunately, the trains did not arrive as expected by the end of 2024. The Lagos Metropolitan Area Transport Authority (LAMATA) in December announced that the trains are now projected to arrive in 2025.
- President Tinubu inaugurates first phase of Lagos Red Line
Context: In February 2024, President Bola Tinubu commissioned the first phase of the Lagos Rail Mass Transit (LRMT) Red Line at Ikeja Train Station, 30 months after construction began in April 2021. The 27-kilometer Phase 1 of the 37-kilometer Red Line runs from Agbado in Ogun State to Oyingbo, with eight stations.
The event also marked the agreement for the second phase of the project, a collaboration between Lagos State, the Lagos Metropolitan Area Transport Authority (LAMATA), and the project’s contractor, CCECC.
The Red Line was designed to drastically cut travel time, with a 40-minute journey from Agbado to Oyingbo. Gov Sanwo-Olu disclosed that the project is funded by the Central Bank of Nigeria and local banks, with trains sourced from the United States of America, United Kingdom, and China.
Why it matters: The Lagos Red Line Phase 1 is the second rail line constructed by the Lagos State Government. It supports the state’s efforts to reduce private car trips, ease road congestion, and improve the efficiency of public transportation in the city.
- Air Peace launches Lagos-London route
Context: In March 2024, local airline Air Peace launched the Lagos-London route, breaking the monopoly previously held by foreign airlines.
The Minister of Aviation and Aerospace Development, Festus Keyamo, was on the maiden flight from Murtala Muhammed International Airport (MMIA) to Gatwick Airport. He highlighted that the success of Air Peace on this route was part of the federal government’s efforts to support local airlines while ensuring they meet the highest international standards in the aviation industry.
At the launch, Air Peace pegged economy class tickets at N1.2 million and business class at N4 million, offering a contrast to the higher prices charged by foreign airlines, which had previously set economy tickets at N2.3 million and business class at N6 million.
Why it matters: The introduction of Air Peace on the Lagos-London route offers Nigerian travelers a significant price reduction, with tickets now more affordable compared to the fares charged by foreign carriers. This move not only provides cost savings but also promotes competition, which could lead to further price reductions and improved services in the Nigerian aviation sector.Q2 2024
Q2 2024
- Foreign airlines lowering Lagos-London fares to push us out of market -Air Peace
Context: In April 2024, Allen Onyema, CEO of Air Peace, disclosed that foreign airlines on the Nigeria-UK route sharply reduced their fares after Air Peace entered with lower prices. Before Air Peace’s arrival, foreign carriers charged up to N17 million for business class and N5 million for economy, citing the exchange rate.
However, after Air Peace introduced fares as low as N1.2 million for economy and N4.5 million for business class, foreign airlines swiftly reduced their prices, despite no significant shift in the exchange rate. Onyema suggested that this price-cutting strategy was a deliberate attempt to force Air Peace out of the market.
Why it matters: Passengers benefited from lower fares, as foreign airlines reduced their prices in response to Air Peace’s entry. However, experts raised concerns that foreign carriers lowering fares below break-even points to oust a local competitor was a questionable business practice. Such tactics could harm long-term competition, limiting options for passengers in the future.
- Air Peace accuses Gatwick Airport of deliberately obstructing its UK flight operations
Context: In April 2024, Allen Onyema, CEO of Air Peace, revealed in an interview with Channels TV that Gatwick Airport had been intentionally obstructing the airline’s operations since it launched direct flights from Lagos to London in March 2024.
Onyema highlighted several issues, including difficulties with ground handling and inadequate space allocation at the airport. He recounted incidents such as Air Peace being assigned to a terminal with a malfunctioning baggage carousel and a collapsed boarding gate.
The Air Peace CEO also shared how flights, despite completing boarding on time, were delayed due to the airport’s failure to provide ground handlers promptly. He speculated that these disruptions were part of a strategy to force Air Peace out of Gatwick under the 80/20 slot rule, which requires airlines to maintain a high on-time departure rate to retain their slots.
Why it matters: The allegations against Gatwick Airport raise concerns about local airlines’ challenges when expanding operations abroad. Such actions could undermine competition and disrupt the growth of international routes for local carriers. However, Onyema has not made similar claims since then.
- Landmark Beach Resort seeks reroute of Lagos-Calabar Coastal Highway
In April 2024, the management of Landmark Beach Resort, led by CEO Paul Onwuanibe, initiated negotiations with federal and state governments to reroute the first 1.5 km of the Lagos-Calabar Coastal Highway.
The proposed route diverted the highway along the undeveloped median of Water Corporation Road to prevent disruptions to the resort’s operations. This followed a demolition notice from the Lagos State Government, which targeted the resort as part of the highway’s right of way.
Why it matters
While the Lagos-Calabar Coastal Highway promises significant benefits, this story highlights how large-scale projects can disrupt businesses like Landmark Beach Resort, a multibillion-dollar enterprise providing employment. Some argue that such infrastructure projects serve the greater good, even if they damage businesses.
However, others contend that businesses contributing to local economies and employment should be considered in the planning process. This tension reflects the challenges of balancing national development with protecting livelihoods, making it a key moment in Nigeria’s transportation sector in 2024.
- Atiku criticizes Lagos-Calabar Coastal Highway project over transparency and financial concerns
Context: In April 2024, Atiku Abubakar criticized the Federal Executive Council’s approval of the Lagos-Calabar Coastal Highway construction contract, awarded to Hitech Construction Africa. Atiku questioned the project’s transparency, highlighting the lack of competitive bidding.
He pointed out discrepancies in the statements made by Works Minister Dave Umahi, who initially claimed the project would require no public funding but later requested N1.06 trillion for its first phase. Atiku also raised concerns about potential conflicts of interest, alleging that the project disproportionately benefited President Bola Tinubu and Hitech’s Chagoury Group.
Why it matters: Atiku’s concerns highlight the importance of transparency and fairness in the procurement process for major public infrastructure projects. His criticisms, echoed by figures like Funso Doherty, draw attention to the risks of opaque decision-making and its potential impact on businesses, local communities, and the broader economy.
The controversy surrounding the Lagos-Calabar Coastal Highway emphasizes the need for competitive bidding and accountability in public projects to prevent conflicts of interest and protect stakeholders’ interests.
- Lagos-Calabar Coastal Highway Right of Way redesigned around Water Corporation Road to preserve infrastructure – Umahi
Context: In April 2024, Minister of Works Dave Umahi explained the redesign of the Lagos-Calabar Coastal Highway’s route. The original plan included Water Corporation Road, but the route was shifted to the coastal path to avoid demolishing the infrastructure along the initial route, which impacted establishments like Landmark Beach Resort.
Umahi emphasized that this reroute was necessary to preserve valuable infrastructure and avoid widespread destruction. He also noted that the Federal Government holds the irrevocable right of way for the project, ensuring its progress while mitigating the destruction of existing structures.
Why it matters: The rerouting of the Lagos-Calabar Coastal Highway highlights the challenges of balancing large-scale infrastructure projects with the preservation of existing businesses and infrastructure. While the new alignment protects valuable assets, it also disrupts establishments like Landmark Beach Resort.
This shift emphasizes the importance of thoughtful planning and consultation in major projects to minimize adverse effects on businesses while still achieving the broader benefits of national development.
- Demolition of Landmark Beach Resort structures begins as Lagos-Calabar Coastal Highway progresses
Context: On April 29, 2024, the demolition of structures at Landmark Beach Resort in Oniru, Victoria Island, began as part of the construction of the Lagos-Calabar Coastal Highway. The resort’s encroachment on the highway’s right-of-way triggered the demolition, which was livestreamed on the resort’s official YouTube channel.
This action follows the federal government’s announcement on April 27, 2024, regarding the removal of structures along the highway’s route. Landmark Beach Resort had sought a reroute to avoid disruption, citing the original right-of-way along Water Corporation Road.
Why it matters: The demolition highlights the challenges businesses like Landmark Beach Resort face when large-scale infrastructure projects disrupt operations. Minister of Works, Dave Umahi, emphasized the federal government’s right to the coastal path for the highway, prioritizing national interests.
Despite efforts to negotiate, the resort’s operations are significantly impacted, illustrating the tension between infrastructure development and the viability of affected businesses.
- Air Peace expands Lagos-London route with new connections from major Nigerian cities
In April 2024, just weeks after launching its Lagos-London service, Air Peace expanded the route to include new connections from Abuja, Asaba, Benin, Enugu, Owerri, Warri, and Port Harcourt, allowing passengers from these cities to connect through Lagos for onward flights to London.
This expansion followed a statement by Air Peace CEO Allen Onyema, who revealed that foreign airlines had slashed their fares significantly after the airline entered the Lagos-London market. The price cuts from foreign carriers went even lower than Air Peace’s initial reductions, which Onyema pointed out were likely aimed at pushing the local airline out of the competition.
Why it matters: Air Peace’s expansion of the Lagos-London route played to its strength by leveraging its extensive domestic network, which covers most major airports in Nigeria.
This strategic move increased convenience for Nigerian travelers, offering more connection options. It also intensified competition, leading to lower fares from foreign carriers and making international travel more affordable for Nigerians.
In December, the airline further expanded the network by adding the Chinua Achebe International Airport in Anambra to its connections.
- FG grants NAEBI Dynamic Concept exclusive right to collect helicopter landing fees nationwide
Context: In April 2024, the Federal Government, through the Ministry of Aviation and Aerospace Development, authorized Messrs NAEBI Dynamic Concept Limited to exclusively collect helicopter landing fees across all Nigerian aerodromes, helipads, airstrips, and oil platforms.
The directive mandated immediate compliance from all civilian helicopter operators, with sanctions for non-compliance. A flat fee of $300 per landing was set, and the Ministry emphasized that it would rigorously enforce the directive, ensuring NAEBI Dynamic Concept Limited full access to collect the fees.
Why it matters: The move was intended to streamline the collection of helicopter landing fees and potentially increase government revenue. However, industry players complained about the exorbitant $300 landing charge, which they believed placed a significant financial burden on operators, especially smaller ones.
Many also questioned the lack of competition in the fee collection process, fearing it could reduce transparency and flexibility within the sector.
- NCAA suspends licenses of three private jets for conducting commercial operations
Context: In April 2024, the Nigerian Civil Aviation Authority (NCAA) suspended the Permits for Non-Commercial Flights (PNCF) licenses of at least three private jets for engaging in commercial operations. The PNCF, granted to private jet owners, strictly prohibits using their aircraft for transporting passengers, cargo, or mail for compensation or hire.
This suspension followed stern warnings from the Minister of Aviation and Aerospace Development, Festus Keyamo, and the NCAA against the unauthorized use of private jets for commercial purposes, with violators facing penalties, including the suspension or revocation of their permits.
Why it matters: The NCAA’s suspension emphasized the need for strict adherence to regulations governing private jet operations. It highlighted the importance of preventing private jet owners from using their aircraft for commercial purposes, a practice that had raised concerns among industry players about fairness and safety. By enforcing penalties, the NCAA reinforced its commitment to ensuring compliance and maintaining the integrity of the aviation sector, protecting both operators and passengers.
- Aviation Minister approves Abuja-London route for Air Peace
Context: In April 2024, the Minister of Aviation and Aerospace Development, Festus Keyamo, approved Air Peace to operate the Abuja-London route, expanding the airline’s services beyond its existing Lagos-London route. Keyamo revealed that the approval was based on reciprocity, as British Airways also operates the Abuja-London route alongside the Lagos-London route.
The Aviation Minister noted that this approval could spark a price war on the route, potentially driving down fares for Nigerian passengers. However, the Abuja-London route has yet to be launched by Air Peace.
Why it matters: The approval of the Abuja-London route underscores the federal government’s support for local airlines and its efforts to ensure reciprocity under Bilateral Air Services Agreements (BASA). While the route has yet to go live, the decision highlights the role of Nigerian carriers in increasing competition within the Nigeria-UK aviation market. Although a price war could impact airline profitability, it is expected to benefit passengers by reducing fares.
- International aircraft lessors say Nigeria’s local insurance market cannot handle dry-lease risks – Keyamo
Context: In April 2024, Festus Keyamo, the Minister of Aviation and Aerospace Development, revealed that international aircraft lessors and manufacturers require insurance sourced from the international market, not locally, before leasing aircraft to Nigeria on dry-lease terms.
He noted concerns from lessors about the capacity of Nigeria’s local insurance market to handle the associated risks. While Nigeria’s National Insurance Commission mandates local insurance for all domestic risks, Keyamo pointed out that to meet the demands of international lessors, Nigerian insurers would need to seek reinsurance abroad, increasing costs for local operators.
Why it matters: The issue highlights a key challenge in attracting international aircraft lessors to Nigeria, as local insurers lack the capacity to cover aviation risks. Resolving this could lower leasing costs for Nigerian airlines, improve access to aircraft, and foster growth in the local aviation sector. Keyamo’s proposed discussions with NAICOM aim to create a more favorable environment for international leasing while maintaining local content.
- U.S.-Nigeria Air Transport Bilateral Agreement goes live 24 years after first announcement
After 24 years of provisional application, the U.S.-Nigeria Air Transport Agreement officially came into force on May 13, 2024. This agreement aligns with the U.S. Open Skies policy and establishes a modern civil aviation relationship between the two countries.
It offers provisions for unrestricted flight capacity, open route rights, liberal charter regulations, and enhanced code-sharing opportunities. The agreement aims to improve aviation safety and security while promoting economic and commercial ties between the U.S. and Nigeria. It also provides airlines with the ability to offer more affordable, convenient, and efficient services, boosting tourism and commerce.
Why it matters: The U.S.-Nigeria Air Transport Agreement marks a significant step in liberalizing the aviation sector in Africa, providing Nigerian airlines with greater operational flexibility and global market access.
This will help Nigerian carriers expand their international reach, increase competition, and improve service offerings. It also fosters growth in the travel and cargo sectors, benefiting both passengers and businesses.
- FG suspends $300 helicopter landing levy one month after implementation
Context: In June 2024, the Federal Government, through the Ministry of Aviation and Aerospace Development, suspended the $300 helicopter landing levy imposed by Messrs NAEBI Dynamic Concept Limited.
This decision came just a month after the company was granted exclusive rights to collect the levy nationwide. The suspension was prompted by concerns raised by industry stakeholders, though the concession and mandate to collect the levy remained in place.
A committee was formed to address these concerns and create a framework for compliance that benefits all parties involved.
Why it matters: The suspension highlights the tension between government-imposed fees and the concerns of industry players, particularly helicopter operators.
Stakeholders raised issues about the levy’s financial burden, the lack of corresponding infrastructure, and the payment system. Resolving these concerns is critical to ensuring the sustainable growth of Nigeria’s aviation sector, as well as maintaining a fair and transparent framework for all involved.
Q3 2024
- NCAA suspends permits of 10 private jet operators for ignoring recertification directive
Context: In July 2024, the Nigeria Civil Aviation Authority (NCAA) suspended the Permits for Non-Commercial Flights (PNCF) licenses of 10 private jet operators for failing to comply with a recertification directive issued earlier in April.
The directive, aimed at curbing the misuse of private jets for commercial purposes, required operators to complete the recertification process by April 19, 2024. The affected operators had not initiated the necessary steps to comply with the directive, resulting in the suspension of their licenses.
Why it matters: This suspension emphasizes the NCAA’s commitment to enforcing regulations that prevent the misuse of private jets for commercial activities, which could undermine the integrity of Nigeria’s aviation industry.
It highlights the importance of compliance with safety and operational standards, ensuring that private jet operations are properly regulated. The action also signals the NCAA’s proactive stance in safeguarding the sector’s integrity, potentially influencing future operations and compliance across the industry.
- Funso Doherty Sues FG, BPP, and Hitech Construction over alleged legal violations in Lagos-Calabar Coastal Road project
Context: In August 2024, Funso Doherty filed a lawsuit against the Federal Government, the Bureau of Public Procurement (BPP), and Hitech Construction over alleged illegalities in the awarding and initiation of the Lagos-Calabar Coastal Road project.
Doherty argued that the contract violated the Public Procurement Act and the Environmental Impact Assessment Act, as it lacked competitive bidding and failed to conduct necessary environmental assessments. He sought to halt the project and demanded compliance with these legal frameworks, claiming the actions threatened public safety and the region’s economic stability.
Why it matters: Doherty’s lawsuit highlights concerns about transparency and legal compliance in the Lagos-Calabar Coastal Road project, echoing criticisms from figures like Atiku Abubakar. It underscores the need for strict adherence to procurement and environmental laws to safeguard public welfare, economic stability, and legal standards in large-scale infrastructure projects.
- Ethiopian Airlines CEO blames politicization, local airlines’ resistance for Nigeria Air failure
Context: In August 2024, Ethiopian Airlines CEO, Mesfin Tasew Bekele, attributed the failure of the Nigeria Air project to politicization and resistance from local Nigerian airlines. Despite efforts to collaborate with the Nigerian government and institutional investors, Bekele pointed out that Nigerian airlines opposed the project, contributing to its eventual abandonment.
Why it matters: Despite its appeal to Ethiopian Airlines, the Nigeria Air project faced significant domestic opposition, resulting in its suspension in 2024. The project was criticized by the House of Representatives in June 2023 for a fraudulent launch, reflecting concerns over its legitimacy. The project’s challenges also led to the prosecution of former Aviation Minister Hadi Sirika by the EFCC for alleged money laundering, contract fraud, and issues surrounding Nigeria Air, raising questions about the integrity of its execution.
- Nigeria Air deal would have seen Nigeria pay Ethiopian Airlines $112 million over 3 years –Festus Keyamo
Context: In September 2024, Aviation Minister Festus Keyamo revealed that the suspended Nigeria Air deal would have required Nigeria to pay Ethiopian Airlines approximately $112 million over three years for the use of its surplus aircraft.
He pointed out that this arrangement would have granted Ethiopian Airlines a dominant position in the new national carrier, with the profits benefiting Ethiopia more than Nigeria. The deal also positioned Ethiopian Airlines as a majority stakeholder with a 49% share, granting them significant control over Nigeria Air’s operations.
Why it matters: Keyamo’s revelations highlighted the significant risks for Nigeria, including the loss of Bilateral Air Service Agreement (BASA) rights and control over its aviation sector. The terms also exposed Nigeria to financial risks through tax exemptions and indemnity clauses that could have shifted losses onto the government. Furthermore, the deal would have concentrated key management roles with Ethiopian Airlines, limiting Nigeria’s decision-making power in its national carrier.
- FEC approves N158 billion contract for Dangote to build Lekki Port service lanes to Shagamu-Benin Expressway
Context: In September 2024, the Federal Executive Council (FEC) approved a N158 billion contract for the construction of service lanes linking the Lekki Deep Sea Port through Epe to the Shagamu-Benin Expressway.
The project, managed by Dangote Industries, will be funded through the Federal Government’s Road Infrastructure Development Fund and the Refurbishment Investment Tax Credit Scheme. This initiative aims to alleviate traffic congestion in Lagos, especially around the Lekki Free Trade Zone, and improve the movement of goods, enhancing connectivity to other regions.
Why it matters: The project is crucial for addressing Lagos’ traffic issues and boosting regional logistics. By using the Road Infrastructure Development Fund and Tax Credit Scheme, the government encourages private sector investment, with Dangote Industries receiving tax credits in return. This public-private partnership accelerates infrastructure development, reduces government expenditure, and strengthens Nigeria’s economic connectivity.
Q4 2024
- NRC grants Lagos 3-year license for Blue Line, 6-month temporary license for Red Line
In October 2024, the Nigerian Railway Corporation (NRC) granted Lagos a three-year operational license for the Blue Line and a six-month temporary license for the Red Line.
The licenses were presented to the Lagos Metropolitan Area Transport Authority (LAMATA) after a thorough assessment of the Blue Line’s infrastructure and operations, along with the testing of the Red Line.
The temporary license for the Red Line’s first phase, from Oyingbo to Agbado, was granted just days before its scheduled passenger operations on October 15, 2024. Permanent approval for the Red Line is still pending further assessments
Why it matters: The licensing marks a pivotal move in expanding Lagos’ urban transport network, easing traffic congestion, and promoting sustainable public transit. It highlights the increasing involvement of state governments in managing transport infrastructure.
However, concerns remain over NRC’s dual role as both regulator and operator, which could present conflicts of interest. This milestone is significant; as it marks the first time a non-NRC entity will operate trains in Nigeria.
- Nigeria exits Aviation Working Group watchlist with 75.5% compliance on Cape Town Convention index
Context: In October, Nigeria exited the Aviation Working Group (AWG) watchlist after achieving a 75.5% compliance score on the Cape Town Convention (CTC) Compliance Index. This followed a September increase from 49 to 70.5, driven by the issuance of the Federal High Court (Cape Town Convention and Aircraft Protocol) Practice Direction, 2024.
The directive ensures full compliance with the CTC by prioritizing its provisions in relevant cases, setting strict timelines for enforcing remedies, and requiring recognition of foreign court orders within 10 days.
Why it matters: Exiting the AWG watchlist improves Nigerian airlines’ access to global aircraft leasing markets, enabling fleet expansion and improved route coverage. However, addressing international lessors’ concerns over local insurers’ capacity to handle dry-lease risks remains essential for fully realizing these benefits.
- Air Peace CEO Allen Onyema charged with obstruction of justice in ongoing U.S. fraud case
Context: In October, Allen Onyema, Chairman and CEO of Air Peace, faced new charges of obstruction of justice in the United States. Onyema, alongside Air Peace’s Chief of Administration and Finance, Ejiroghene Eghagha, had previously been charged with bank fraud and money laundering.
U.S. authorities allege that between 2016 and 2018, Onyema and Eghagha used fraudulent export letters of credit to transfer over $20 million to U.S. accounts under the pretense of purchasing Boeing 737 aircraft.
Investigations revealed falsified documents and links to Springfield Aviation, a company owned by Onyema with no legitimate aviation activities. The new charges stem from attempts to submit backdated contracts to halt the investigation.
Why it matters: The case sheds light on transparency concerns surrounding one of Nigeria’s leading airlines, Air Peace, which plays a critical role in the country’s aviation sector. Allegations of fraud and obstruction could affect the airline’s reputation and partnerships, potentially disrupting its operations and stakeholder confidence. However, Onyema and Eghagha remain innocent until proven guilty, as the U.S. government must establish the charges beyond a reasonable doubt during the trial.
- Air Peace: U.S. govt seeks forfeiture of Allen Onyema’s $14 million assets in amended fraud case
Context: In October, Nairametrics obtained exclusive information from the U.S. District Court for the Northern District of Georgia regarding a superseding indictment against Allen Ifechukwu Athan Onyema, CEO of Air Peace. The indictment details 35 counts, including conspiracy to commit bank fraud, credit application fraud, and money laundering.
The U.S. government has requested the forfeiture of approximately $14 million in assets linked to Onyema, specifically funds in accounts associated with Springfield Aviation Inc. and Blue Stream Aero Services, Inc. If these assets cannot be recovered, equivalent properties belonging to the defendants will be pursued.
Why it matters: This case underscores critical concerns about the financial integrity of one of Nigeria’s leading airlines, Air Peace, potentially affecting its reputation and operations. While the legal process unfolds, Onyema remains innocent until proven guilty, with the U.S. government required to substantiate its claims beyond a reasonable doubt.
- FG mandates foreign airlines to use Nigerian caterers for on-board meals from January 2025
Context: In October, the Federal Government mandated that all outbound flights from Nigeria, including foreign airlines, must use local caterers for onboard meals starting January 1, 2025.
Aviation Minister Festus Keyamo clarified that the directive requires airlines to engage Nigerian caterers, not necessarily serve Nigerian dishes. He assured that local caterers meet international standards and are subject to strict quality control to ensure hygiene and safety.
Why it matters: This policy aims to support Nigeria’s local catering businesses, stimulate economic growth, and create jobs. It also emphasizes prioritizing domestic industries in aviation, although maintaining quality standards will be essential for gaining the confidence of international airlines.
- Emirates Airlines resumes Nigeria operations as first flight since 2022 lands at MMIA (Oct)
Context: Emirates Airlines resumed flights to Nigeria on October 1, 2024, with Flight EK 783 landing at Murtala Muhammad International Airport.
The airline had suspended operations in 2022 due to difficulties in repatriating trapped funds, despite assurances from the Central Bank of Nigeria (CBN).
The suspension was lifted following a diplomatic agreement between Nigerian President Bola Tinubu and UAE President in October 2023.
Why it matters: Emirates’ return to Nigeria signals the resolution of a significant financial and diplomatic issue, improving connectivity between Nigeria and the UAE. The resumption also opens up opportunities for Nigerian airlines, as the government secured reciprocal flight rights for Nigerian carriers to operate in the UAE, fostering bilateral trade and travel.
- Lagos govt to concession Red and Blue Line rails for sustainability, loan repayment
Context: In November, the Lagos State Government announced plans to concession the operations of the Red and Blue Line rail systems to the private sector.
The move is intended to ensure the sustainability of the rail projects and facilitate the repayment of loans taken for their development.
Commissioner for Transportation, Oluwaseun Osiyemi, explained that the concessioning would involve transferring the operations to private companies for a specified period, during which foreign partners will manage the systems and train local personnel. After one to two years, management will be fully handed over to Nigerian operators.
Why it matters: The plan aims to address the financial and technical challenges of operating the rail systems, but experts express skepticism due to the current low ridership of the Blue Line, which has only seen 2.37 million passengers in 15 months. Additionally, the system’s low frequency and high operational costs may deter private investors, making it uncertain whether the concession can achieve the intended goals.
