Ionic Insights: The Business Jet Fleet in Nigeria (September 2022)

In this sixth edition of Ionic Insights we focus on Nigeria. We analyse the size, make-up and age of the installed business jet fleet, whilst simultaneously investigating the most numerous aircraft registries, manufacturers and base locations.

Market Summary

With over 200 million citizens Nigeria has the largest population and economy in Africa. The country produces over 2% of the world’s oil; but whilst it now represents a relatively small part of the country’s overall economy, Nigerian government revenues are still heavily dependent on the sector. In addition, the oil industry has driven the growth and expansion of its large fleet of 119* helicopters.

With respect to business jets, Nigeria boasts an installed fleet of 80* aircraft and is second only to South Africa in Africa in terms of overall size. Bombardier is the largest OEM with 34% of the fleet. Legacy Hawker-Beechcraft equipment makes up 28%, and Embraer 14%.

The dominant aircraft categories are the mid/super-midsize and large cabin segments; with the average age of the fleet being 18 years. Not surprisingly, nearly two thirds of all aircraft are based in Lagos, Nigeria’s largest city and the country’s financial, economic and cultural hub. 

Business Jet Financing

Whilst domestic sources of finance are available, securing competitive aircraft financing by international asset and credit-based lenders and private banks (e.g., those requiring assets under management or ‘AUM’) remains challenging, but is by no means impossible. The hurdles are however not insubstantial – the country currently ranks 154 out of 180 on Transparency International’s Corruption Perceptions Index; internal security remains an issue; and two thirds of the fleet is registered domestically (5N).

Credit, jurisdictional risk and registration aside, the willingness of owners to retain, via tripartite agreement with lender, the services of an experienced and independent aircraft management company (such as ACASS, ANAP Jets, Empire Aviation, Execujet or Skyjet, amongst others) in the day-to-day management and operation of their aircraft is a standard requirement of those willing to finance aircraft there.

This analysis is summarised in the following slide:

*Source: AMSTAT, Sep 22