Nigeria’s Edo State Plans Airline With South African Partners
Nigeria’s Edo State is exploring plans to launch a new state-backed airline, joining a growing list of subnational governments seeking to use aviation as a catalyst for regional economic development. According to local media reports, the state government is in discussions with prospective South African investors to establish an indigenous carrier operating from Benin City Airport.
Following a meeting in Abuja with Nigeria’s Minister of Aviation and Aerospace Development, Festus Keyamo, Edo State governor Monday Okpebholo said the potential South African partners have expressed readiness to provide aircraft and technical expertise for the proposed airline. The Edo government is also evaluating a range of investment structures to support the project, according to Nigeria’s Independent newspaper.
The governor said the primary objective of the airline would be to unlock the economic potential of Benin City Airport by improving domestic and regional connectivity. He added that the project is expected to create jobs, stimulate tourism, support trade, and position Benin City as a regional aviation hub serving southern Nigeria and neighbouring markets. Okpebholo urged that the initiative be fast-tracked, stressing the importance of moving quickly from concept to operations, Nigerian Flight Deck reported.
Keyamo welcomed the proposal, describing it as timely and consistent with renewed investor interest in Benin City. He noted that the airport previously functioned as an important hub during the operations of Okada Air, which flew extensively across Nigeria between 1982 and 2002. According to the minister, there is no structural reason the airport cannot reclaim a similar role if supported by the right business model and regulatory framework.
To accelerate progress, Keyamo announced the formation of a joint technical committee tasked with overseeing planning, regulatory compliance, and operational readiness. The committee will submit weekly progress reports to both the federal government and Edo State authorities. The minister said that with coordinated execution, Benin City Airport could reach full operational readiness between the first and second quarters of the year.
The Edo initiative reflects a broader trend across Nigeria, where state governments are increasingly turning to aviation projects as tools for economic diversification and regional integration. Several states have already launched or announced airlines, including Akwa Ibom State with Ibom Air; Enugu State with virtual carrier Enugu Air, operated by Xejet; Cross River State with Cally Air; Ebonyi State with Ebonyi Air; and Bayelsa State with Air Bayelsa.
In parallel, six northeastern states—Gombe, Adamawa, Bauchi, Borno, Taraba, and Yobe—have jointly committed NGN5 billion (around USD3.5 million) each toward establishing a regional airline known as North-East Air Shuttle. The proliferation of state-backed airline projects underscores both the strategic importance of air connectivity in Nigeria and the challenges of ensuring long-term commercial sustainability in a highly competitive and cost-sensitive market.
Related News: https://airguide.info/category/air-travel-business/airline-finance/
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com