Nigerian Airlines Warn New Tax Laws May Ground Operations Within 48 Hours

Domestic airlines in Nigeria have issued an urgent warning that newly enacted tax reforms could force them to cease operations within 48 hours. The legislation signed by President Bola Ahmed Tinubu eliminates critical customs duty and value added tax exemptions for aircraft and spare parts while imposing a 7.5 percent VAT on imported planes and passenger tickets.

Dr. Allen Onyema, Vice President of the Airline Operators of Nigeria, described the policy as globally unprecedented, stating it would trigger immediate operational collapse, massive job losses and paralysis of domestic air connectivity.

This crisis compounds severe existing financial pressures, as Nigeria currently ranks Africa’s third most expensive country for departure taxes, with passengers paying an average of $180 per ticket. Domestic carriers additionally endure between 20 and 37 separate charges per ticket including navigation, landing and security fees which consume 38 to 65 percent of airline revenues. While the government recently cleared a $900 million backlog of trapped foreign airline funds, domestic operators emphasize that suffocating taxation not liquidity remains their existential threat.

Industry analysts caution that enforcing these taxes without revision risks collapsing multiple airlines, disrupting regional travel networks and eliminating thousands of jobs. Stakeholders now demand immediate government dialogue to realign policies with International Civil Aviation Organization cost recovery standards. This transcends airlines impacting Nigeria’s entire economy, tourism sector and global connectivity Onyema stressed.

By Oshuniran Sheriff Ola