Impact Of Finance On The Performance Of Aviation Businesses In Nigeria
Obentey, Austin Amawei
Department of Aviation Business, African Aviation and Aerospace University, Abuja, Nigeria.
Keywords: Aviation finance, Aviation income, Insurance premiums, Business performance, Aviation sector, OLS regression, Revenue generation, Policy recommendations, Nigeria
Abstract
This study examined how finance influences the performance of aviation businesses in Nigeria. Using an ex-post facto research design, secondary data covering 1998 to 2024 were sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin and National Insurance Commission (NAICOM) reports. The study aimed to assess the effects of aviation income and aviation insurance premiums on the output of the aviation sector. Data were analysed using descriptive statistics and the Ordinary Least Squares (OLS) method. Model accuracy was checked using the histogram normality test. Findings show that both aviation income and aviation insurance finance have positive and significant effects on the performance of aviation businesses. This means that revenue generation and insurance financing play essential roles in supporting the growth and stability of the sector. The study concludes that finance is a key driver of aviation business development in Nigeria. Based on these findings, it is recommended that aviation firms adopt more strategic revenue-generation mechanisms and that policymakers enforce comprehensive insurance practices to reduce financial vulnerability and support sustainable aviation development in Nigeria
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