International travel hits 3-year high, domestic air traffic slumps by 13% since 2022

New data from the Federal Airports Authority of Nigeria (FAAN) has exposed a deepening divide in the country’s aviation sector.

While international terminals are processing record numbers of travelers, the domestic market is shrinking, with total local passenger movements falling to their lowest level in three years.

In 2024, total domestic movements dropped to 12.54 million, down from 14.52 million in 2022. Conversely, international travel has defied broader economic pressures, growing from 3.75 million to 4.33 million over the same period.

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Analysts suggest that the skyrocketing cost of local flight tickets—driven by fuel surcharges and currency fluctuations—is pricing out the Nigerian middle class, while the increase in international travel reflects a resilient upper class and a surge in migration and cross-border trade.

For year 2022 to 2023: Domestic traffic fell from 14,519,565 to 13,409,701, representing a 7.6 percent decrease.

For year 2023 to 2024, traffic fell further to 12,543,153, a 6.4 percent decrease.

Total 3-Year Impact show that since 2022, the domestic aviation market has shrunk by 13.6 percent, losing nearly 2 million passengers.

The international sector presents a much more optimistic trend for airport revenue and global connectivity.

The year 2022 to 2023: International traffic rose from 3,752,746 to 4,070,833, a 8.4 percent increase.

For year 2023 to 2024, traffic climbed to 4,334,665, a 6.4 percent increase.

Total 3-year impact show that since 2022, international travel has grown by 15.5 percent, adding over 580,000 annual passengers.

The new figures from FAAN reaffirms the fact that Nigerian airlines are struggling to stay afloat, with shrinking routes and declining passenger volumes amid a depreciating tax base driven by unfriendly aviation policies.

According to Charles Grant, Chief Financial Officer of Aero Contractors, the sector is performing below its potential, with domestic passenger numbers dropping by about three million since 2022, despite rising travel demand.

He attributed the decline to multiple challenges, including fiscal charges, high operating costs, and regulatory bottlenecks. Grant noted that although demand for air travel remains high in Nigeria, local airlines are struggling to compete with foreign carriers that have built viable business models around Nigerian traffic.

Grant raised these concerns during his presentation at the recent Civil Aviation Cost Recovery and Revenue Optimisation Stakeholders’ Retreat in Lagos.

Bismarck Rewane, the CEO of Financial Derivatives Company, has disclosed that out of 23 active domestic airlines in Nigeria, only five airlines control 75 percent air traffic locally.

The CEO of Financial Derivatives Company expressed concerns that Nigeria continues to spend billions on airports operations but the air traffic continues to decline and this is not commensurate with the airport operations expenditures.

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On international front, while several factors such as high airfares, travel class restrictions, visa restrictions, and the weakness of the Nigerian passport, continue to contribute to the slow growth traffic but analysts see a rebound in the market.

Despite these challenges, Ezekiel Ikotun, Managing Director of Finchglow Travels, believed that Nigerians are resourceful and will find ways to adapt. He noted that there’s been an increase in interest in African destinations and local tourism, citing his recent trip to Morocco as an example.

Olumide Ohunayo, industry analyst and Director, Research, Zenith Travels, who had spoken to BusinessDay earlier said in 2024 Nigeria’s international travels did not do badly because more international and African airlines started operating into Nigeria.

He said this encouraged more travellers.

Ohunayo said the domestic market, on the other hand, has not seen new airlines impacting the market.

Ifeoma Okeke-Korieocha is the Aviation Correspondent at BusinessDay Media Limited, publishers of BusinessDay Newspapers.

She is also the Deputy Editor, BusinessDay Weekender Magazine, the Saturday Weekend edition of BusinessDay.

She holds a BSC in Mass Communication from the prestigious University of Nigeria, Nsukka and a Masters degree in Marketing at the University of Lagos.

As the lead writer on the aviation desk, Ifeoma is responsible and in charge of the three weekly aviation and travel pages in BusinessDay and BDSunday. She also overseas and edits all pages of BusinessDay Saturday Weekender.

She has written various investigative, features and news stories in aviation and business related issues and has been severally nominated for award in the category of Aviation Writer of the Year by the Nigeria Media Nite-Out awards; one of the Nigeria’s most prestigious media awards ceremonies.

Ifeoma is a one-time winner of the prestigious Nigeria Media Merit Award under the 'Aviation Writer of the Year' Category.

She is the 2025 Eloy Award winner under the Print Media Journalist category.

She has undergone several journalism trainings by various prestigious organisations.

Ifeoma is also a fellow of the Female Reporters Leadership Fellowship of the Wole Soyinka Centre for Investigative Journalism.

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