According to the Nigeria Civil Aviation Authority Regulations, 2023, the following must be followed for an airline to be licensed for business.
Eligibility of the Applicant
The applicant must either be:
A Nigerian citizen, or
A company or organization registered in Nigeria, with its principal office located in Nigeria and controlled by Nigerians.
Suitability of the Applicant
The applicant must be deemed a fit and proper person based on:
Their experience in aviation and general past activities.
For companies, the individuals in control must have relevant skills and experience in aviation and be capable of operating aircraft responsibly.
Financial Capability
The applicant must have the financial resources and arrangements necessary to handle both current and future obligations related to their aviation activities.
Steps to Obtain an Operating License in Nigeria
The Civil Aviation Act, 2022 emphasizes that: “No aircraft shall be used for flying passengers or cargo for reward without a license, permit, or authorization issued by the Authority.”
Application for a License
A written application to the Authority.
There are specific requirements for this application.
Consideration by the Authority
The Authority will evaluate the impact of the proposed services on existing air transport services provided by Nigerian-registered airlines.
If multiple applicants propose similar services, the Authority will assess whether it would be beneficial to allow more than one airline to provide these services.
The Authority may issue permits to foreign air operators to engage in commercial air transport within Nigeria.
Applications for permits must be submitted in writing to the Director-General, including all required details.
Alteration, Suspension, or Revocation of Permits
The Authority may alter, amend, modify, suspend, or revoke permits if the holder fails to comply with the provisions of the Act or terms of the permit.
Interested parties may submit protests or memorandums in support of or against such actions.
Regulations for Licensing
Individuals or entities involved in air transport, sales, or allied services must obtain the appropriate license, permit, or authorization from the Authority.
The Authority may establish rules regarding licensing requirements, the information to be provided by applicants, and the terms of licenses issued.
Insurance Requirements
Operators must maintain adequate insurance to cover liabilities under the Act and compensate third parties for damages.
Failure to maintain proper insurance may result in refusal, suspension, or revocation of the authorization to operate.
Thresholds for Registration with CAC
To register with the Corporate Affairs Commission, the following thresholds apply based on the category of aviation business:
Air Transport (International): ₦2 Billion
Air Transport (Regional): ₦1 Billion
Air Transport (Local): ₦500 Million
Air Ambulance/Fumigation/Private Jet: ₦20 Million
Aviation (Ground Handling Services): ₦500 Million
These thresholds determine the financial requirements for businesses wishing to operate in these sectors in Nigeria.
References:
Nigerian Civil Aviation Act, 2022
Nigeria Civil Aviation Authority Regulations, 2023