On November 25, 2024, Mr. Kay sat in his living room, masking his disappointment with a forced smile. Months of planning to attend his only child’s graduation at the University of Nigeria, Nsukka, ended in heartbreak because he couldn’t afford the airfare.
Despite weeks of trying to gather funds and even seeking assistance from a former student turned airline executive, Mr. Kay couldn’t meet the cost. Shockingly, over 40% of the airline’s ticket price consisted of taxes—an all-too-common struggle for Nigerian travelers burdened by escalating airfares fueled by excessive taxation.
Airline Operators’ Longstanding Complaints
Nigerian airline operators have repeatedly decried the burden of multiple taxes, citing it as a major factor in high operational costs and the frequent collapse of airlines.
In 2017, Allen Onyema, CEO of Air Peace, lamented that airlines faced over 37 different charges, stating, “It has really affected our operations and taken all the gains we are supposed to make.”
Fast-forward to 2025, and the issue persists. Investigations reveal that domestic airlines currently pay no fewer than 16 different taxes, ranging from terminal navigation charges to clearance fees. These levies, divided into aeronautical and non-aeronautical revenues, are collected by various agencies, including:
- Federal Airports Authority of Nigeria (FAAN)
- Nigerian Civil Aviation Authority (NCAA)
- Nigerian Airspace Management Agency (NAMA)
- Bi-Courtney Aviation Services Limited
A Unique Aviation Market
Captain Ado Sanusi, Managing Director of Aero Contractors, describes Nigeria’s aviation market as “peculiar,” where ticket pricing struggles to balance operational costs and profitability.
“If taxes are reduced, ticket prices will drop, making air travel affordable and increasing passenger numbers,” Sanusi explained. He emphasized the goal of having at least 10% of Nigerians—approximately 25 million people—flying annually by aligning ticket prices with the average Nigerian’s purchasing power.
Sanusi also criticized the NCAA’s position as a top contributor to federal revenue, with over ₦400 billion annually, questioning why the aviation industry remains “on life support” despite such contributions.
Calls for Tax Reforms
There are currently 17 documented taxes on airlines, and stakeholders are calling for their unification to ease the burden on operators. Sanusi suggested, “When you pay a 5% ticket sales charge, that should cover all other levies, eliminating additional costs for inspections and other fees.”
According to Sindy Foster, Principal Managing Partner at Avaero Capital Partners, the issue of multiple taxes has been debated endlessly, but real progress requires decisive action.
Genuine Reforms Are Key
Although there have been some positive steps, such as the removal of VAT on airfares, aviation experts stress the need for comprehensive tax reforms. A shift toward cost recovery, rather than profit-making, could transform the struggling sector and make air travel accessible for more Nigerians.
Foster concluded, “What remains is action. Without it, the industry will continue to face these recurring challenges.
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