Nigeria Clears $850M Airline Debt, Lifts ICAO Safety Score to Record 91.4%

Since the appointment of Minister Festus Keyamo in August 2023, Nigeria’s aviation sector has undergone a significant transformation, marked by the clearance of $850 million in trapped airline funds and a record-breaking aviation safety score. These reforms have begun to restore international confidence and bolster domestic carriers. The country’s safety standing received a major endorsement in April 2026, achieving a 91.4% score in the International Civil Aviation Organization’s (ICAO) safety audit, a substantial increase from 70% in 2023.

The changes address years of systemic issues that hampered the industry, including a crippling foreign exchange backlog, deteriorating airport infrastructure, and a contentious national carrier project. By prioritizing the strengthening of domestic airlines and resolving critical financial blockades, the ministry has repositioned Nigeria as a more reliable and competitive player in the African aviation market.

Financial and Regulatory Overhaul

One of the most immediate challenges Keyamo’s administration tackled was the $850 million in funds owed to foreign airlines. The inability to repatriate revenue had previously led carriers like Emirates to suspend Nigerian operations in October 2022. The successful clearance of this backlog, confirmed by the International Air Transport Association (IATA), was a critical step in normalizing relations with international partners. This action directly impacts foreign airlines, which can now resume and sustain operations with confidence.

Simultaneously, the ministry addressed a major barrier to fleet growth for local airlines: a global lessors' blacklist. By implementing the Cape Town Convention and signing an Irrevocable De-Registration and Export Request Authorisation (IDERA), Nigeria provided lessors with a legal framework to repossess aircraft in case of default. According to the Aviation Working Group (AWG), this improved Nigeria's compliance rating to 75.5%, making it easier and cheaper for carriers like Air Peace to secure dry leases, where the airline takes full operational responsibility, as opposed to more expensive wet leases.

Enhancing Safety and Passenger Rights

The new 91.4% safety score from the ICAO Universal Safety Oversight Audit Programme - Continuous Monitoring Approach (USOAP-CMA) is a landmark achievement. The previous score of 70% was considered below average by global standards. The improved rating enhances the country's international reputation and the standing of its airlines. The audit reflects systemic improvements in safety oversight managed by the Nigeria Civil Aviation Authority (NCAA).

In a move to protect consumers, the ministry also empowered the NCAA to enforce strict compensation for passengers affected by flight delays and cancellations not caused by acts of God. Effective January 2024, regulations mandate that defaulting airlines provide a 40-50% rebate on future tickets for affected passengers, addressing a long-standing source of customer frustration.

Supporting Domestic Carriers

A central pillar of Keyamo's strategy has been the empowerment of local airlines. The controversial Nigeria Air project was suspended, shifting focus to carriers with existing operational capacity. This policy bore fruit when Air Peace, after a seven-year hiatus for any Nigerian carrier, secured landing slots at London's Gatwick and later, historic slots at Heathrow Airport for flights commencing in October 2025. Air Peace CEO Allen Onyema credited Keyamo's diplomatic intervention for overcoming hurdles with UK authorities.

Further support includes the development of a local Maintenance, Repair, and Overhaul (MRO) facility. The government facilitated a deal for Embraer to build an MRO in Lagos, with the foundation laid in September 2025. This facility aims to curb the estimated $2.5 billion Nigeria spends annually on offshore aircraft maintenance. Additionally, domestic airlines received a 30% reduction in debts owed to aviation agencies, and the government intervened to stabilize aviation fuel prices between N1,760 and N2,037 per litre.

Infrastructure Modernization

Significant capital has been allocated to upgrade aging airport infrastructure. The Federal Executive Council approved N712 billion for the full rehabilitation of Terminal One at Murtala Muhammed International Airport (LOS) in Lagos. International airlines have been relocated to the newer Terminal Two, and a crackdown on touts has reportedly improved the passenger experience. The project also includes upgrades to airfield lighting on key runways and taxiways to CAT 2 LED systems.

Technical Analysis

The series of reforms under Minister Keyamo represents a fundamental pivot in Nigeria's aviation strategy. The decision to suspend the state-led Nigeria Air project and instead foster private domestic carriers like Air Peace for international expansion marks a shift towards a more market-driven, competitive model. This move, combined with clearing the $850 million forex backlog and ensuring compliance with the Cape Town Convention, directly addresses the primary financial and risk-related deterrents that previously isolated Nigeria from the global aviation finance community. Historically, the suspension of services by Emirates in 2022 demonstrated the severe consequences of financial instability. Keyamo's actions reverse this trajectory, aligning Nigeria with the broader industry trend of building robust, indigenous aviation ecosystems, as seen with the development of the Embraer MRO facility to retain maintenance revenue domestically.

What Comes Next

Several key projects are expected to reach completion in the coming years. The new Embraer MRO facility in Lagos is expected to be completed by late 2026. Following the N712 billion funding approval, the comprehensive rehabilitation of Murtala Muhammed International Airport's Terminal One is now projected to be finished by mid-2027.

Why This Matters

These reforms are collectively repositioning Nigeria as a more credible and stable aviation hub in West Africa. For airlines, the changes reduce operational risk, lower leasing costs, and open new international routes. For passengers, the results include improved airport facilities, better consumer protections, and potentially greater choice and lower fares as both domestic and international competition increases.