Nigeria’s aviation sector is bracing for a major crisis as a newly approved tax regime threatens to cripple domestic airlines.
President Bola Ahmed Tinubu recently signed the new tax laws, which include customs duties on imported aircraft and spare parts, along with a 7.5% Value Added Tax (VAT) on imported planes and ticket fares.
Chairman of Air Peace Ltd and Vice-President of the Airline Operators of Nigeria (AON), Dr. Allen Onyema, has sounded the alarm, warning that the measures could devastate the industry. “The airline would die within 48 hours if implemented,” he declared, stressing that operators are already overwhelmed by excessive taxes and charges.
Currently, passengers departing Nigeria pay an average of $180 in ticket-related taxes and fees more than double the African average of $68, according to the African Airlines Association (AFRAA) 2024 report.
The same report ranks Nigeria as the third most expensive African country for aviation taxes, behind only Gabon and Sierra Leone.
Industry stakeholders argue that the new levies will stifle demand for air travel, push ticket prices even higher, and jeopardize the survival of local carriers.
They warn of dire consequences, including the collapse of domestic airlines, mass job losses, and potential social unrest.
Foreign airline representatives have also joined calls for a review, noting that high operational costs make flights from Nigeria within Africa more expensive than some routes to Europe. While the government has taken steps to ease certain pressures such as clearing nearly $900 million in trapped foreign airline revenues many say deeper structural reforms are needed.
Onyema commended Aviation Minister Festus Keyamo for engaging on the issue, but urged urgent action to prevent an industry meltdown. “Nigerian airlines are barely surviving,” he said. “Adding these taxes could push us over the edge.”
The future of the sector, stakeholders insist, depends on genuine collaboration between the government, regulators, and operators to create a tax structure that sustains growth rather than stifling it.
In aviation, where safety, jobs, and economic connectivity are at stake, survival depends on more than just keeping planes in the air it depends on keeping the industry alive.
