SNOW TV NEWS DESK
Nigeria’s aviation industry is facing renewed pressure as airline operators warn that multiple taxes, rising fuel costs, and regulatory charges are making domestic air travel increasingly expensive and threatening the survival of local carriers.
The operators raised the alarm on Friday during a town hall meeting organized by the Office of the Tax Ombud in Lagos, where they accused revenue agencies of continuing to demand payments despite government assurances that certain aviation taxes had been suspended or removed.
Chief Executive Officer of Air Peace and Vice President of the Airline Operators of Nigeria, Allen Onyema, warned that the industry could become unviable without urgent government intervention.
According to him, passengers currently bear a combined tax burden of about 12.5 percent on airline tickets, comprising 7.5 percent value-added tax and a five percent charge attributed to the Nigerian Civil Aviation Authority.
Onyema expressed concern that airlines were still being pursued for VAT payments despite assurances that the government had granted relief.
He argued that the problem extends beyond ticket taxation, noting that operators contend with as many as 154 different charges associated with running their businesses.
Rising Costs Put Airlines Under Pressure
The airline executive also identified aviation fuel prices as a major threat to the industry’s survival.
He disclosed that the price of aviation fuel had increased from about ₦900 per litre to more than ₦2,000, with operators at some point purchasing the product for as much as ₦3,500 per litre.
This creates a difficult situation for airlines because passing the additional costs to passengers through higher ticket prices could discourage travel, while absorbing them would further weaken already strained finances.
Onyema blamed the combination of high operating costs and multiple charges for the collapse of more than 80 airlines in Nigeria over the years.
He also cited concerns reportedly raised by the International Air Transport Association about the country’s difficult operating environment, describing the comparison of Nigeria with Afghanistan as particularly troubling.
The airline chief appealed to the Tax Ombud to present the industry’s concerns to President Bola Tinubu, arguing that the president needed to understand the extent of the challenges facing operators.
He maintained that previous aviation-related tax relief measures followed presidential intervention.
Tax Ombud Promises Intervention
Meanwhile, the Tax Ombud and Chief Executive of the Office of the Tax Ombud, John Nwabueze, said the government’s ongoing tax reforms were designed to create a more transparent, efficient, and equitable revenue system.
He explained that his office would help resolve disputes between taxpayers and revenue authorities through mediation, adding that its services would be provided free of charge.
Industry Calls for More Than Tax Relief
The airlines’ concerns highlight a wider problem in Nigeria’s business environment: the difference between announcing tax relief and ensuring that government agencies implement it consistently.
For the aviation sector, the consequences extend beyond airline profitability. Higher operating costs could translate into more expensive tickets, reduced flight capacity, job losses, and weaker connectivity between Nigerian cities.
Ultimately, operators are not simply asking for lower taxes. They want a predictable tax system, fewer overlapping charges, and consistent enforcement of government policies.
Without meaningful intervention, the cost of keeping airlines in operation could increasingly be transferred to passengers and the wider economy.
“Sir Bartholomew White Ebe is a Lagos-based media personality, Music Artist, Producer, and a Relationship Coach and independent journalist. With over seven years of experience tracking political developments and cultural shifts in Nigeria, he specializes in local current affairs, grassroots politics, and community-driven reporting across Lagos State. As the founder and chief editor of Snow Multimedia Connect {SNOW TV}, he leads the editorial team to deliver verified, high-impact stories to digital audiences.”
Email: snowmediaconnect@gmail.com
