The impact of Air Service Agreement liberalization: the case of Nigeria

The positive impact of Air transport liberalization suggested by economic theories and empirical studies has inspired many developing countries like Nigeria to liberalize some of its Air Service Agreements despite certain reservations. This paper seeks to examine the extent to which international air service liberalization impacted the Nigerian international air transport market ten years after commencement. The methodology used involves collection of secondary data on international passenger traffic and other macroeconomic variables. The analysis involves cross sectional regression modeling which establishes the relationship between the variables. The findings confirm the theoretical assumptions of significant traffic growth and reveal particularly interesting liberalization stages in the market. The paper can assist in guiding policy and industry stakeholders in future decisions relating to liberalisation and the future of ASAs.