Airlines seek meeting with Tinubu over charges, taxes

Nigerian domestic airline operators are urgently seeking a meeting with President Bola Tinubu to address the mounting pressures of taxes and charges that threaten the survival of the sector. Allen Onyema, Founder and Chief Executive Officer of Air Peace, stated that the Federal Government needs a clearer understanding of the challenges facing airlines.

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The time has come and I believe this government will listen, we are seeking an appointment with the president and we think the president should see us and hear from us.

"The time has come and I believe this government will listen, we are seeking an appointment with the president and we think the president should see us and hear from us," Onyema said during an interview on ARISE News. He emphasized that while operators appreciate the current administration's support, direct communication is crucial to convey the "pain points" impacting airlines. Onyema warned that the collapse of any airline could trigger significant job losses, potentially fueling insecurity and unemployment.

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We are patriotic citizens of this country, we appreciate what this government has done for us, but they need to listen more to us and get to know the pains, the pain points that are hitting these airlines. If any airline goes down, banks will take a hit and it will create massive job losses. A lot of people will be thrown into the unemployment market and of course, you don’t know who will be the next hand rubber, next suicide bomber, next kidnapper, and all that.

A key concern raised by Onyema is the five percent Passenger Service Charge. He argued that this levy, along with other taxes, places undue financial strain on airlines, as the revenue generated often does not align with the sector's profit margins. "If I charge N100,000, the NCAA will take five per cent. If I charge N200,000, the NCAA will take five per cent of N200,000. I didn’t set up business with you because aviation itself does not give you a five percent gain," he explained, refuting the notion that passengers solely bear this cost.

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What is the truth? The truth we have to tell the president is that the five percent passengers TSC, the tax, the airlines and they will tell you that oh, it’s the passengers that pay it. We refuse to accept. We refuse to accept.

The airline operators are advocating for the establishment of a committee to review aviation taxes and charges. They believe this review is essential to address long-standing issues that have contributed to the downfall of airlines over the years. The operators aim to present their case directly to President Tinubu, bypassing intermediaries to ensure their concerns are heard firsthand.

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If I charge N100,000, the NCAA will take five per cent. If I charge N200,000, the NCAA will take five per cent of N200,000. I didn’t set up business with you because aviation itself does not give you a five percent gain.