Nigeria Needs $100B Energy Investment for Aviation & Tourism Growth

by Familugba Victor

On June 20, the Chairman of Quorum Aviation, Mr. Abiola Lawal, stated that Nigeria needs a minimum of $100 billion in energy sector investment to effectively tackle the infrastructure deficits in the aviation and tourism industries.

He made the statement during his presentation at the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN) Aviation Summit 2025, held virtually on Friday. The summit was themed “Governance Strategies for Aligning Aviation Development with Sustainable Tourism Growth.”

In his presentation titled “The Critical Role of Energy in Aviation and Tourism Development,” Lawal highlighted that shortcomings in Nigeria’s energy sector hinder progress in aviation and tourism. He urged the Federal Government to make significant investments to address the deficit.

He noted that Nigeria’s current electricity distribution of around 5,000 megawatts is grossly inadequate for a population exceeding 200 million.

As The Independent.ng reported, Lawal cited that jet fuel powers over 100,000 daily flights globally, with aviation fuel accounting for 8 per cent of global oil demand. Lawal emphasised that fuel costs make up 30 to 40 per cent of operational expenses within the airline sub-sector, stressing that energy efficiency plays a critical role in ticket pricing, route planning, and overall airline sustainability.

He said: “Power generation capacity is 12,000MW installed, but only 4,000–5,000MW available. Tourism suffers due to poor road access, limited reliable power supply, and lack of modern transport terminals.

“In West Africa, regional electricity access is approximately 52 per cent, with many tourist zones relying on diesel/petrol generators, which are costly to maintain. Poor regional air and rail connectivity increases dependence on fuel-intensive road transport.

“For Africa generally, the infrastructure investment gap is $130–$170 billion per year, with a financing gap of $68–$108 billion yearly.”

Lawal insisted that energy was strategic for aviation and tourism growth and advised the government to prioritise clean, affordable and secure energy by investing in sustainable innovations.

Also, Dr. Alex Nwuba, President of the Aircraft and Owners Pilots Association of Nigeria (AOPA), said in his presentation, ‘Governance Strategies for Aligning Aviation Development with Sustainable Tourism Goals in Nigeria,’ that the aviation sector was crucial for tourism facilitation in Nigeria, aiding travel and boosting the economy through increased visitor arrivals.

Nwuba pointed out that Nigeria’s aviation infrastructure is often outdated, which affects the efficiency and reliability of air travel in the country.

He also observed that regulatory challenges hindered the growth of the aviation sector, impacting airline operations and competitiveness.

Nwuba explained that one of the major obstacles to aviation and tourism growth was the lack of cooperation between them.

He also pointed out that there was no reason for creating additional agencies or ministries to address the country’s energy, aviation, and tourism challenges; rather, he advocated for collaboration and partnership among the various government agencies and ministries.

He said, “Nigeria does not require additional agencies or ministries to boost its energy, aviation, or tourism potential. We don’t need new policies. Unfortunately, every agency or ministry has been working in silos. We do things individually without considering the other government agencies.

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“This is beyond the aviation and tourism sectors alone. Government agencies and ministries, including the Ministries of Health, Finance, and others, must be involved in policy formulation. Everyone has to be involved.”

Also, Mr. Wole Shadare, the Aviation Editor and Publisher, said in his paper that the Nigerian aviation industry’s growth was constrained by a lack of finance to acquire modern infrastructure.

He said Nigerian airports needed about N3 trillion to fix their infrastructure deficit.

He said, “Aviation and tourism have a symbiotic relationship. The two have to work together to achieve the expected growth. Aviation has not linked tourism well due to limited connectivity. At times, to connect some African countries, you will first link Europe and return to Africa.

“Policymakers should look into this. Thank God for the Single African Air Transport Market (SAATM), which is gradually emerging, but some countries still engage in protectionism. Insecurity and limited infrastructure are also limiting our tourism sector growth.”

In her goodwill message, Mrs. Nkechi Onyenso, Chairman, Aviation Sectoral Group, ICSAN, said that building the bridges between growth, clean energy, crowd management, and safety was pertinent.

Onyenso declared that professionals in various fields must integrate clean energy into aviation planning, infuse crowd management into tourism goals to ensure a safe and secure environment for tourism, and engage the local community in plans for the building of airports and aviation development.

She further advocated for an improved image for Nigeria in order to attract more tourism activities, the creation of incentives for low-emission travel and climate-resilient infrastructure, and the fostering of innovation through public–private partnerships in both the aviation and tourism sectors.

Onyenso also advocated using credible data to make timely, transparent, and equitable decisions regarding aviation development.

She added: “Let us not view sustainability as a constraint, but as an opportunity – a chance to shape an aviation and tourism future that is more balanced, inclusive, and resilient.

“The journey to align aviation with sustainable tourism is complex but also essential—and it begins with our collective will.”

Stay informed with the latest updates on Nigeria’s travel scene by visiting the Nigeria Tourism News section on Rex Clarke Adventures.

 

Frequently Asked Questions and Answers

Why does Nigeria require such a large investment in its energy sector for aviation and tourism?

Nigeria needs at least $100 billion in its energy sector to address severe infrastructure deficits currently hindering the growth and efficiency of its aviation and tourism industries. Experts like Abiola Lawal highlighted that the current power distribution of 5,000MW is insufficient for the country’s population, impacting everything from airline operations to tourist facilities.

Who are the key figures who spoke at the ICSAN Aviation Summit 2025 regarding this issue?

Key speakers included Mr. Abiola Lawal, Chairman of Quorum Aviation, who emphasised the need for energy investment; Dr. Alex Nwuba, President of the Aircraft and Owners Pilots Association of Nigeria (AOPA), who advocated for inter-agency collaboration; and Mr. Wole Shadare, Aviation Editor and Publisher, who spoke on the financial constraints in aviation infrastructure.

According to the speakers, what are the main challenges facing Nigeria’s aviation and tourism sectors?

The main challenges identified include a significant energy deficit and unreliable power supply, outdated aviation infrastructure, regulatory hurdles, a lack of cooperation between government agencies and sectors, insufficient funding for infrastructure projects, limited regional connectivity, and security concerns impacting tourism.

Is the solution to these challenges new government agencies or policies?

Dr. Alex Nwuba states Nigeria does not need additional agencies or new policies. Instead, the critical solution is enhanced collaboration and partnership among existing government agencies and ministries. He stressed that different ministries, including Health and Finance, must collaborate in policy formulation to achieve comprehensive growth.

How does the energy deficit specifically impact aviation and tourism operations?

Energy inefficiency, particularly concerning aviation fuel, represents 30-40% of airline operational expenses, directly influencing ticket pricing and airline viability. For tourism, poor road access, limited reliable power supply, and lack of modern transport terminals deter visitors, with many tourist zones relying on expensive and unsustainable diesel generators due to inadequate national grid access.

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