In a significant development signaling the growing impact of the Single African Air Transport Market (SAATM), Nigeria is rapidly becoming a prime destination for African airlines seeking to expand their operations and capitalize on the continent’s liberalized skies. This influx underscores Nigeria’s strategic importance as a major economic hub and a key player in fostering intra-African connectivity.
The SAATM, an ambitious initiative by the African Union, aims to dismantle barriers to air travel within Africa, paving the way for enhanced economic integration and trade, particularly in conjunction with the African Continental Free Trade Area (AfCFTA). By removing restrictions on air routes and traffic rights, SAATM empowers airlines to operate more freely across member states.
Recent activity in the Nigerian aviation sector vividly illustrates this trend. Air Sierra Leone, the newly established flag carrier of Sierra Leone, commenced flight operations into Nigeria in January, marking a significant step in its regional expansion. Similarly, Air Algerie has recently launched direct flights connecting Algiers, the Algerian capital, with Abuja, Nigeria’s seat of power, further strengthening ties between North and West Africa.
Adding to this momentum, South African airlines have responded to the burgeoning demand by increasing their flight frequencies into Lagos, Nigeria’s bustling commercial center, now offering daily connections.
According to Olumide Ohunayo, a seasoned aviation industry analyst and director of research at Zenith Travels, these developments are a direct consequence of SAATM’s implementation and Nigeria’s proactive stance. “The African airlines we see showing interest in the Nigerian market are trying to reap from the benefits of SAATM,” Ohunayo explained. “Keyamo has ensured Nigeria becomes a strong player in SAATM. Almost all of these airlines are using the Fifth Freedom. Some are going beyond Abuja, while others are flying from other African countries before coming into Nigeria.”
The “Fifth Freedom” in aviation is a crucial aspect of air traffic rights, granting an airline the privilege to carry passengers between two foreign countries on a flight originating or ending in its own home country. This flexibility allows airlines to optimize their routes and tap into diverse markets.
Ohunayo emphasized that the increased presence of African carriers in Nigeria is a tangible benefit of SAATM, leading to a greater availability of seats on international routes. He also pointed to the stabilizing economic environment in Nigeria as a significant draw. “Due to the closeness of official and black market rates, it is now easy for airlines to sell and remit their funds, rather than waste time going to the central bank to access the official rate. With this, we are going to have more connections, more flights and more seats on the international route available to the Nigerian passengers. When you have more seats, people will love to travel,” he noted.
The need for enhanced air connectivity within Africa is underscored by data from the International Air Transport Association (IATA), which reveals that Africa currently has the lowest air connectivity globally. Shockingly, only 19 percent of the 1,431 possible air links between African Union countries have significant direct service (at least weekly). This stark reality often leads to circuitous and time-consuming journeys for travelers within the continent. For instance, a relatively short trip from Accra, Ghana, to Brazzaville, Congo, can frustratingly involve multiple layovers, sometimes even requiring transit through Europe or the Middle East, turning a 200km journey into an ordeal lasting over 24 hours.
Seyi Adewale, Chief Executive Officer of Mainstream Cargo Limited, believes that the growing embrace of intra-African trade, facilitated by initiatives like AfCFTA and SAATM, is a pivotal step towards the continent’s economic prosperity. He lauded the efforts of the Federal Ministry of Aviation under Minister Festus Keyamo in aligning Nigeria with the objectives of SAATM by revising policies and Bilateral Air Service Agreements (BASAs).
“The major benefits of the development include reducing the cost of intra African trade and the associate of ease of doing business with states. Also, travel and tourism within Africa will be enhanced, thereby reducing the net financial outflows from the continent. Importantly, this may boost regional currency usage and indeed an African currency in the longer term,” Adewale articulated.
Currently, out of the 30 international airlines operating in Nigeria, only 11 are African carriers, including prominent names like Ethiopian Airlines, Kenya Airways, and South African Airways. Alex Nwuba, President of the Aircraft Owners and Pilots Association of Nigeria and former CEO of Associated Airlines, highlights Nigeria’s crucial role in the African aviation landscape.
“According to data by the African Airlines Association (AFRAA) for 2022, only North Africa represents over 22 percent of air travelers. While North Africa has strong carriers that can move passengers, the entire West Africa, and in particular Nigeria, requires international carriers to move very large numbers of passengers. This is why we see the strong demand for access to the Nigerian market,” Nwuba stated. He further emphasized the benefits of direct flights, noting, “It prevents the need to fly east to go west. It enables the opportunity for choices of destinations until Nigeria can, like many regions, float airlines that address market needs.”
By fostering a unified air transport market, SAATM holds the promise of significantly improving intra-African air connectivity, making travel within the continent more efficient and affordable. This, in turn, is expected to catalyze intra-Africa trade, boost tourism, stimulate economic growth, and generate much-needed employment opportunities across the continent. As more African nations actively implement SAATM, the vision of a truly interconnected and prosperous Africa through its skies moves closer to realization, with Nigeria firmly positioned at the forefront of this transformative journey.
