Nigerian airline plan faces multiple obstacles

Subject

Nigeria's national carrier.

Significance

Nigeria plans to re-launch a national airline in December, as President Muhammadu Buhari attempts to deliver on a signature 2015 election promise. Despite much fanfare, vagueness surrounds the proposed ‘Nigeria Air’ and the degree of investor interest in the new venture.

Impacts

• The government will struggle to comply with international standards and implement the necessary reforms to make the carrier viable.
• Poor domestic airport infrastructure will remain a hindrance to broader sectoral expansion.
• A new government-backed airline would raise concerns of potential monopolistic advantage.
• To entice investors, the government will need to provide clear assurances that it will not unduly interfere in the airline’s operations.