Addressing Cost of Airline Operations in Nigeria

Nigeria's aviation sector is grappling with exceptionally high operational costs, making it one of the most challenging markets worldwide for airlines, according to the International Air Transport Association (IATA).

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Nigerian carriers to survive because they are literally strangled with too many taxes and charges.

Kamil Al-Awadhi, IATA's Regional Vice President for Africa and the Middle East, stated that Nigerian carriers are "literally strangled with too many taxes and charges." Despite ongoing reform efforts by the Minister of Aviation, Festus Keyamo, airlines continue to face significant cost pressures that hinder their competitiveness and profitability.

Al-Awadhi urged member states of the Economic Community of West African States (ECOWAS) to implement a proposed 25% reduction in aviation taxes and charges. He believes this measure would lower air travel costs, boost passenger traffic, and enhance the competitiveness of airlines across West Africa. The aviation industry is considered a vital driver of trade, tourism, and economic development.

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the measure would help lower the cost of air travel, stimulate passenger traffic, and improve the competitiveness of airlines operating within West Africa.

Adding to the burden, Nigerian airlines are subject to about 54 different taxes, fees, and charges from agencies like the Nigeria Civil Aviation Authority (NCAA), the Federal Airports Authority of Nigeria (FAAN), the Nigerian Airspace Management Agency (NAMA), and the Nigeria Revenue Service. Examples include Common User Terminal Equipment (CUTE) fees, Passenger Service Charges (PSC), and annual payments for apron passes and registration, significantly impacting airline finances.

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heavy taxation on Africa’s aviation sector was stifling economic growth, undermining job creation, and fuelling youth unrest across the continent, noting that one-third of the cost of tickets in Africa goes to taxes and fees.