Airlines, Stakeholders Reject New Aviation Tax Regime

Nigerian airlines and aviation stakeholders have strongly opposed the newly signed tax reform act, warning that it could cripple operations, increase ticket prices, and threaten jobs in the sector.

The new policy reintroduces Value Added Tax (VAT) on air tickets and removes customs duty exemptions on imported aircraft and spare parts. Industry players argue that the measures run contrary to global best practices and will worsen the financial strain on local carriers already battling high operational costs.

Managing Director of Aero Contractors, Capt. Ado Sanusi, described the development as “a major setback” for the industry, stressing that the burden of multiple taxes was unsustainable. He cautioned that several airlines could shut down if the policy is fully enforced.

Similarly, Chairman of Air Peace and Vice President of the Airline Operators of Nigeria (AON), Dr. Allen Onyema, warned that the 7.5 percent VAT on tickets would have “catastrophic effects” on affordability and service delivery. He appealed to the federal government to reconsider or amend the law.

Stakeholders also highlighted that Nigeria already ranks among African countries with the highest aviation charges, with passengers paying some of the steepest ticket-related levies in the region. They urged the government to engage with operators and consider waivers or phased implementation to prevent further disruption in the industry.

By Oshuniran Sheriff Ola