Nigeria’s domestic aviation industry faces a potential crisis due to newly introduced tax laws, warns Allen Onyema, Chairman and Chief Executive Officer of Air Peace. He cautions that if the laws take effect on 1 January 2025 without review, domestic airfares could soar to as much as N1.7 million, forcing local carriers out of business within months and harming passengers, banks, and the broader economy.
Onyema attributes the high airfares to excessive taxes, levies and charges imposed on airlines. He rejects claims that airlines are profiteering, explaining that most ticket revenue is absorbed by statutory deductions. The new tax reforms would ultimately burden passengers, leading to a sharp rise in domestic fares.
The warning comes amid growing public anger over already steep domestic airfares, which climbed to between N250,000 and N450,000 for single‑route flights during the Yuletide season. Despite calls for a suspension, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee insists the new tax laws will take effect on 1 January 2026.
Onyema emphasizes the need to review the tax laws to prevent a crisis in the domestic aviation sector. He notes that the reforms would significantly increase ticket prices, making air travel unaffordable for many Nigerians and risking the collapse of domestic airlines—a development with far‑reaching economic consequences.
The Nigerian government has been urged to reconsider the implementation of the new tax laws to avoid worsening the already challenging situation in the domestic aviation industry. As the sector awaits a governmental decision, passengers brace for potential fare hikes, highlighting the need for a balanced taxation approach that considers the impact on both businesses and consumers.
Comments are closed for this story.