Reported by: Oahimire Omone Precious | Edited by: Gabriel Osa
The chairman of United Nigeria Airlines has reignited debate over the rising operational costs confronting the aviation industry, warning that the accumulation of taxes and levies imposed on airlines is pushing fares beyond the reach of ordinary travellers. Speaking during a recent industry engagement, he disclosed that a single airline ticket in Nigeria is burdened by as many as eighteen separate taxes, a situation he described as unsustainable for both operators and passengers. His remarks come at a time when air travel has become increasingly vital for business, security, and regional connectivity, yet remains financially challenging for millions of citizens who rely on it.
According to the chairman, the taxation structure has created an environment where airlines are unable to price tickets in a way that reflects the realities of the average Nigerian consumer. He noted that while airlines across the world contend with charges related to regulation, terminal operation, fuel, and navigation, the Nigerian industry faces an excessive compilation of federal, state, and local levies that accumulate at every stage of the travel process. These taxes, he explained, place a significant burden on local operators who are already grappling with rising fuel prices, foreign exchange pressure, and maintenance costs that must be settled entirely in foreign currency. He added that without urgent intervention, ticket prices will continue climbing due to factors that are largely outside the control of individual airlines.
Industry observers have long argued that taxes in Nigeria’s aviation sector are disproportionately higher than in several comparable markets. The chairman’s comments appear to reinforce concerns among operators that the current structure affects not only the cost of travel but also the long-term viability of indigenous airlines. With many carriers struggling to maintain fleet size, schedules, and operational reliability, industry leaders increasingly believe that regulatory and fiscal reform is essential to ensure the sector’s survival. The chairman emphasized that airlines want to grow, add more aircraft, expand route networks, and reduce the cost of travel, but these goals are difficult to achieve when operators are weighed down by multiple layers of taxation.
He further explained that the direct implication of the excessive levies is that passengers ultimately bear the cost. Instead of stimulating demand, the current environment suppresses it, making travel inaccessible for large segments of the population. He warned that unless the government reviews and consolidates the various charges levied by different agencies, the industry will continue operating in a cycle where high fares discourage travel, low passenger volumes reduce revenue, and inadequate income limits investment in fleet expansion and safety improvements. The chairman urged policymakers to understand that aviation has a multiplier effect across sectors such as agriculture, tourism, trade, and technology, and that reducing costs for operators can stimulate broader economic productivity.
Dialogue between aviation operators and the government has been ongoing for years, but industry leaders say the need for reform has become more urgent due to current economic pressures. The chairman stressed that airlines are not asking for subsidies or preferential treatment but for fair and rational regulation that enables sustainable operations. He pointed out that some of the taxes imposed on ticket sales appear duplicative, with overlapping mandates among agencies contributing to an inflated cost structure. According to him, eliminating redundant taxes and harmonizing mandatory fees would bring immediate relief to both operators and passengers, while also positioning the sector for long-term growth.
He also highlighted the importance of creating a predictable operating environment. With fluctuating exchange rates and rising maintenance costs, airlines already face considerable financial instability. When this instability is compounded by inconsistent regulatory charges and multiple layers of taxation, planning becomes extremely difficult. The chairman explained that predictable costs allow airlines to manage resources, negotiate contracts, and maintain stable pricing. Without that predictability, operators are forced to constantly adjust fares, resulting in volatility that frustrates passengers and undermines confidence in the sector.
Industry analysts note that Nigeria’s aviation sector has significant potential for expansion. With a growing population, a rising number of domestic travellers, and increasing demand for regional connectivity, local airlines could capture substantial market share if regulatory conditions are made more favourable. The chairman believes that reforming the tax structure would unlock this potential by reducing fares, increasing passenger traffic, and enabling airlines to expand routes. He said that Nigeria’s position as a regional hub for commerce and diplomacy means that air transport is not merely a commercial service but a strategic asset. Strengthening the aviation sector, therefore, has broader implications for national development.
In addition to advocating for reduced taxes, the chairman addressed the need for investment in airport infrastructure. He noted that modern, efficient, and well-equipped airports reduce operational delays and improve passenger experience. However, he argued that infrastructure upgrades must be accompanied by regulatory reforms, because improving facilities without addressing the cost burden still leaves airlines struggling. He urged the government to pursue a balanced approach that aligns infrastructure development with policies that enhance affordability and accessibility.
The chairman’s statement has sparked renewed discussion among stakeholders, with many operators and travel experts expressing hope that the government will take concrete steps to review the taxation framework. Some believe that a unified ticket tax system, similar to models used in other regions, could replace the numerous charges currently imposed by various agencies. This approach, they argue, would simplify the process, reduce administrative costs, and help airlines better plan their financial operations. Others maintain that the government should prioritize eliminating taxes that do not directly contribute to safety, service quality, or infrastructure development.
Aviation unions and consumer rights groups have also weighed in on the issue, with representatives expressing concern that the rising cost of air travel has forced many Nigerians to rely on road transport despite security challenges on major routes. They argue that making air travel more affordable is not only an economic necessity but also a public safety matter. The chairman echoed this sentiment, stating that aviation plays a critical role in ensuring mobility across the country, especially in regions where road travel has become increasingly dangerous.
As the debate continues, many Nigerians are watching closely to see whether the federal government will respond by implementing meaningful reforms. For passengers, the hope is that reduced levies will translate to lower fares and more travel options. For airlines, the priority remains creating a stable environment that allows them to operate safely, efficiently, and profitably. The chairman concluded by reiterating that reducing taxes is one of the most effective ways to stimulate growth in the sector, and that doing so would benefit the entire economy.
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