The International Air Transport Association (IATA) has once again identified Nigeria as one of the most costly nations globally for conducting airline business. The organization pointed to elevated operational expenses that persistently hinder the viability and expansion of domestic carriers.
IATA's Statement at the Annual General Meeting
Speaking at the IATA Annual General Meeting (AGM) held in Brazil, Kamil Al-Awadhi, IATA's Regional Vice President for Africa and the Middle East, acknowledged the reform efforts of Nigeria's Minister of Aviation and Aerospace Development, Festus Keyamo. However, he emphasized that airlines in Nigeria continue to grapple with substantial cost burdens. Al-Awadhi noted that the high-cost environment makes it challenging for Nigerian airlines to remain competitive and profitable, thereby limiting the sector's potential growth.
He highlighted that excessive taxes, charges, and other operational expenses persistently strain airlines across the region, with Nigeria ranking among the most difficult markets from a cost perspective. To mitigate this, Al-Awadhi urged member states of the Economic Community of West African States (ECOWAS) to adopt a proposed 25 percent reduction in aviation taxes and charges. He stated that such a measure would lower air travel costs, stimulate passenger traffic, and enhance the competitiveness of airlines operating within West Africa.
United Nigeria Airlines Chairman's Perspective
Prof. Obiora Okonkwo, Chairman of United Nigeria Airlines (UNA), recently described Nigeria as one of the most over-taxed aviation jurisdictions on the continent. He argued that this situation continuously drives up ticket prices and distorts competition in West African airspace. Okonkwo lamented that the cumulative levies imposed on airlines in Nigeria far exceed those in neighboring countries.
He provided a specific example: "A passenger tax here in this airport is $100. In Ghana, it's $60. I don't know why ours should be higher." Okonkwo further explained that beyond the passenger tax, numerous deductions are made on every ticket sold, leading to high fares. He stated that when all charges are aggregated, a Lagos-Accra return ticket carries about $116 in taxes alone, before the airline even prices the actual flight service component.
Okonkwo called on the government to reduce multiple taxes and create a single-window approach to aviation finance. He warned that high charges ultimately suppress economic activity, emphasizing that "if people cannot move, commerce cannot expand."
