Aviation (as defined on Wikipedia) includes the activities surrounding mechanical flight and the aircraft industry. Aviation can be broadly categorized into three main groups: Commercial Airlines, Military Aircraft and General Aviation.
Commercial Airlines: There are approximately 24,000 commercial aircraft operating worldwide. These planes are primarily used for passenger transportation but can be converted into VIP configurations for private or exclusive use. In Nigeria, commercial airlines serve domestic routes (operating within Nigeria), and commercial airlines fly internal routes, all of which are regulated by the Nigeria Civil Aviation Authority.
Nigeria Civil Aviation Authority
By Section 8 (3) of the Civil Aviation Act 2022, the Nigeria Civil Aviation Authority (NCAA) is the sole civil aviation regulatory body in Nigeria; this is notwithstanding anything contained in any other law. Nigeria has twenty (20) airports and many regulated airstrips and heliports; 23 active domestic airlines; 554 licensed pilots; 913 licensed engineers and 1700 cabin personnel. Nigeria being Africa’s most populous country is an important destination for over 22 foreign carriers. Nigeria currently has Bilateral Air Services Agreements with over 78 countries.
Some airlines serving domestic routes currently in operation in Nigeria include: Air Peace, Arik Air, Ibom Air, Max Air, United Nigeria Airlines, Value Jet (Nigeria), Overland Airways, Rano Air, Aero Contractors, Azman Air etc
Some commercial airlines flying internal routes currently in operation in Nigeria include: Air Peace, KLM Royal Dutch Airlines, ASKY Airlines, Qatar Airways, Ibom Air, British Airways, Turkish Airlines, Ethiopian Airlines, Qatar Airways, EgyptAir etc
Military Aircraft: Around 48,000 military jets are in service globally. These aircraft are designed for defense and combat roles, including transport, surveillance, and tactical operations. Nigeria is currently fighting insurgency in different parts of the country. Boko Haram in Northern Nigeria, bandits in Northern Nigeria, IPOB/ ESN ‘terrorist’ in South East Nigeria, oil theft in South-South, Nigeria, and kidnapping in South West Nigeria. The Nigerian Airforce manages a relatively impressive collection of modern aircraft. Various military aircraft are involved in the operation of protecting the territorial integrity/sovereignty of Nigeria, amongst which are: Chengdu F-7s, Dassault-Dornier Alpha Jets, JF-17 Thunder Block II, T129 Atak, Agusta Westland 109, Eurocopter EC135 and Embraer EMB 314 Super Tucano aircraft amongst others.
General Aviation: This category encompasses a wide range of aircraft and activities beyond commercial and military operations.
General aviation is further divided into various specialized categories, including:
- Agricultural Aviation: Used for crop dusting, aerial spraying, and other farming-related activities.
- Search and Rescue (SAR): Aircraft dedicated to emergency response operations, often used by coast guards or other emergency services. The Nigerian Air Force announced on 18, June 2024, its intention to acquire 50 new aircraft to enhance its capabilities against armed gangs and terrorists in northwest Nigeria. One of these is the AW109. The AW109 is a light, twin-engine, multi-purpose helicopter developed by Agusta (now Leonardo), first flown in 1971 and entering service in 1976. It is used for various roles including medical evacuation, search and rescue, and military operations
- Air Ambulance: Specialized aircraft equipped to transport patients in need of urgent medical care. There are a couple of private hospitals in Nigeria that provide this service. eg Reddington Air Ambulance Service, FLYING DOCTORS NIGERIA, EAMS (Nigeria) etc
- Disaster Relief: Aircraft deployed for humanitarian missions, providing aid in the aftermath of natural disasters.
- Flight Training: Aircraft used for pilot education and training purposes. There are several of these aircraft in the various Pilot Training or Flight Training Schools in Nigeria such as Nigeria College of Aviation Technology (NCAT), International Aviation College, Zino Aviation, etc
Nigerian College of Aviation Technology took delivery of six Diamond DA40 NG training aircraft.
Corporate Aviation
Corporate aviation includes a wide range of aircraft types, not limited to jets but also encompassing turboprops, twin-engine, and single-engine planes. Approximately 24,000 jets are currently in use within this sector. These jets are categorized into several classes based on their size and range capabilities:
- Small: The most popular aircraft types in this classification include: Hawker 400 XP, Dassault Falcon 10, Cessna Citation CJ2, Cessna Citation CJ3, Embraer Phenom 300, Learjet 45, Cessna Citation CJ4
- Midsize: Aircraft types in this category include: Gulfstream G150, Cessna Citation Latitude, Hawker 900XP, Bombardier Challenger 300, Learjet 60, Challenger jets
- Super Midsize: The most famous super mid-size jets include: the Bombardier Challenger 350, Cessna Citation Sovereign, Gulfstream G280, Gulfstream G200, Dassault Falcon 2000, Cessna Citation X
- Large Cabin: Popular heavy jets in the private jet market include: Bombardier Challenger 605, Cessna Citation Sovereign, Gulfstream G350, Dassault Falcon 900
- Ultra Long Range: The most famous ultra-long-range heavy jets include: Gulfstream V, Dassault Falcon 7x, Bombardier Global 6000, Bombardier Global 7500, Embraer Lineage 1000
- VIP Airline: Aircraft configured for the ultimate luxury and comfort, often used by corporations or high-net- individuals. Bizliners in the marketplace include Boeing Business Jet BBJ, Airbus Corporate Jet ACJ 380, Airbus Corporate Jet ACJ 319
Examples of commercial aircraft are Airbus A Series, Airbus A350, Airbus A320, ATR 72, Boeing 737-800, Boeing 777, Boeing 787-8, Bombardier CRJ Series,
A JetBlue Airbus A320, a Southwest airlines Boeing 737, and an American Eagle Embraer ERJ-175 are seen at La Guardia Airport in New York City on Jan. 9, 2024. Boeing and Airbus airplanes make up a large portion of the U.S. passenger airline fleets.
Introduction to Aircraft Valuation in Nigeria
The valuation of an aircraft involves determining its economic value, which can be influenced by various factors such as the aircraft’s type, age, condition, maintenance history, and market demand
The preamble to carrying out the valuation of aircraft lies in the above highlight, where valuers are expected to first understand the aviation industry and the different kinds of aircraft and their purposes/functions before attempting to carry out the valuation.
Any aircraft that is the subject of the valuation, must fall under any of the above categories. i.e. you may be valuing commercial aircraft (flying local or international routes) military jets (any aircraft belonging to the Nigeria Police Force, Nigerian Air Force, Nigeria Army, etc), or any aircraft that falls under general aviation (aircraft used in the training schools for civil or military aviation) or corporate aviation (private jets)
Here are some key considerations sequel to the above:
- Type and Model: Different aircraft types and models have varying values based on their size, range, and capabilities.
- Age: An aircraft’s age affects its value, with newer aircraft typically being more valuable than older ones.
- Condition: The aircraft’s overall condition, including any damage or wear, impacts its value
- Maintenance History: A well-maintained aircraft with regular maintenance records is more valuable than one with a poor maintenance history.
- Market Demand: The demand for specific aircraft types can fluctuate, affecting their value.
VALUATION STANDARD
In line with International Valuation Standards (IVS) 2025, aircraft falls under Plant, Equipment, and Infrastructure and should be valued by Asset Standards: IVS 300
Paragraph: 20.01 (IVS 300) states:
Items of PEI (which may sometimes be categorized as a type of personal property) are tangible assets that are usually held by an entity for use in the manufacturing/production or supply of goods or services, for rental by others, or administrative purposes and that are expected to be used over some time. PEI may also include infrastructure assets, which are typically part of a specialized system, network, or group of complementary assets.
Paragraph 30.01 states: By IVS 100 Valuation Framework, the valuer must comply with the valuer principles (see IVS 100 Valuation Framework, section 10).
Paragraph 60: 60.01 The three principal valuation approaches described in IVS 103 Valuation Approaches may all be applied to the valuation of PEI assets and/or liabilities depending on the nature of the assets, the information available, and the facts and circumstances surrounding the valuation.
Valuation Approaches
- Comparable Sales: Analyzing sales data of similar aircraft, then adjusting for differentials
- Cost Approach: Estimating the cost to replace or reproduce the aircraft, then depreciate accordingly
- Income Approach: Calculating the aircraft’s potential revenue-generating capacity. This can be adopted using the income generated in the last 12 months as a result of the usage of the aircraft.
Conclusion
This is just a summary/overview of aircraft valuation and non-exhaustive. For an in-depth write-up on an aircraft valuation, there is a need for specificity as regards the aircraft type, model, and any additional relevant details part of which are stated above to be provided.
References
- https://blog.wakanow.com/airlines-in-nigeria/
- https://en.wikipedia.org/wiki/List_of_airlines_of_Nigeria
- https://www.militaryfactory.com/modern-airpower/aircraft-nigerian-air-force.php
- https://ncaa.gov.ng/
- https://armyrecognition.com/news/army-news/army-news-2024/nigerian-air-force-announces-acquisition-of-50-new-aircraft-to-combat-terrorism#google_vignette
- https://www.luxaviation.com/the-different-types-of-private-jets-you-should-know/
This article expresses a personal opinion as well as excerpts from International Valuation Standards 2025, and other written articles found on the sites referenced above and does not in any way substitute for such professional advice or services and it should not be acted on or relied upon or used as a basis for any decision or action that may affect you or your business, without consulting a qualified Valuers or Financial Advisor.
Ademola Ladega (ANIVS, RSV MNIM, FIMC) is the founder and managing partner of AOL Consult (www.aolmanagementconsult.com.ng) He is a highly experienced real estate consultant with field/practical experience spanning over 16 years, having previously worked at Ismail and Partners, where he contributed a great deal to the success of the firm and rose to the position of the Head of Valuation and Senior Associate. He is presently serving as the Secretary of the Plant and Equipment Faculty/Professional Group of the Nigeria institution of Estate Surveyors and Valuers, having been appointed in July, 2020
Mr. Ladega has extensive experience of providing valuation services in Nigeria to large public and private companies in many sectors including utilities, banking, insurance, financial services, agro-industrial, shipping, commercial and trading sectors. As well as experience in reporting in accordance with the regulatory requirements of Nigeria, in full compliance with ESVARBON Nigeria Valuation Standards (Green Book) 2018 and other standards such as USGAAP, IPSAS, IFRS, RICS, and IVS 2025
