Abstract:

The study assesses the role of finance in the expansion of aviation businesses in Africa, focusing on Nigeria. Employing an ex-post facto research design, data spanning 1994-2024 was retrieved from the Central Bank of Nigeria (CBN) Statistical Bulletin and NAICOM reports. The study utilized aviation income, aviation insurance finance (premiums), and aviation output as proxies for aviation business expansion. Analytical techniques included descriptive statistics, Covariance Analysis, and the Ordinary Least Square (OLS) model, with residual diagnostics such as the histogram normality test and the Breusch-Pagan-Godfrey test for heteroskedasticity to validate the model. Results reveal that aviation income has a positive and significant effect on aviation business expansion, underscoring the importance of revenue generation for sectoral growth. Similarly, aviation insurance finance demonstrates a positive and significant impact, highlighting its critical role in mitigating risks and supporting operational resilience. The study concludes that finance is pivotal to the expansion of aviation businesses in Nigeria, offering insights applicable across Africa. Recommendations include enhancing aviation revenue generation by improving passenger traffic, diversifying revenue streams, and promoting tourism while strengthening aviation insurance frameworks. Policymakers are advised to create tailored insurance schemes, improve affordability, and foster partnerships among government, private investors, and insurers to ensure the sector’s resilience against economic shocks.