IATA: Nigeria’s Aviation Sector Contributes $2.5bn To GDP Annually, Supports 217,000 Jobs

IATA says the aviation sector boosts Nigeria’s economy with $2.5bn GDP contribution annually.

In commemoration of Nigeria’s 65 years of independence, International Air Transport Association (IATA) has stated that the air transport sector in Nigeria contributes $2.5 billion annually to the Gross National Product (GDP), which is 0.7 per cent, and created 217,000 jobs.

That was disclosed by IATA’s Regional Vice President for Africa and Middle East, Kamil Alawadhi.

Alawadhi said air connectivity was fundamental to unlocking a country’s economic growth potential and prosperity, as it enabled industries across all regions within the country to engage in dynamic business activity.

The organisation stated that most Nigerians, who travelled, went to Europe, the largest international market for passenger flow from Nigeria, followed by Africa and North America.

It disclosed that international air traffic accounted for 23 per cent of total origin-destination (O-D) departures for Nigeria in 2023, equivalent to 2.1 million passenger departures.

According to IATA statistics, almost 780,700 passengers departed from Nigeria to a country in Europe (38 per cent of the total); 485,400 to another country in Africa (23 per cent of the total); and 373,000 to North America (18 per cent of the total).

IATA also disclosed that 195,700 tonnes of air cargo were transported through airports in Nigeria in 2023, thus, supporting the country’s total import and export volumes.

Alawadhi stated, “Aviation is a powerful engine for economic and social development. Nigeria’s National Day is a good opportunity to reflect on the immense value aviation brings to the country.

“Air transport supports over 217,000 jobs and contributes $2.5 billion to Nigeria’s GDP. With one of the fastest-growing populations in Africa and the world, and a predominantly young demographic, there is immense opportunity for future economic growth.”

The IATA chief explained that there were different ways of measuring air transport’s impact on an economy.

He stressed, “There are different ways of measuring air transport’s impact on an economy. Two key indicators are the number of jobs and the contribution to gross domestic product (GDP) generated by the aviation sector, including airlines, airport operators and on-site businesses, air navigation service providers (ANSPs), and manufacturers (‘direct’ aviation players).

“In Nigeria, 39,500 people are directly employed in aviation, generating USD 702.0 million of economic output, equal to 0.2% of total GDP. Additional benefits are generated by the wider supply chain, employee spending, and tourism activities contributing a total of USD 2.5 billion to GDP and 216,700 jobs.”

Alawadhi said, “Tourism supported by aviation contributes USD 454.1 million to the country’s GDP and employs 66,600 people. International tourists to Nigeria are estimated to contribute USD760.2millionannually to the economy through the purchase of goods and services from local businesses.

“By swiftly and safely connecting people in different cities, air transport generates benefits to consumers and the wider economy. It makes the world smaller, enriching lives and enhancing cultural diversity.

“In rural and remote areas, air transport provides an essential lifeline for the community, safeguarding access to healthcare, education, and often employment.”