Ogona Anita
The Chief Executive Officer of United Nigeria Airlines, Prof. Obiora Okonkwo, has once again raised alarm over what he describes as an overwhelming tax burden crippling Nigeria’s aviation industry, revealing that domestic airlines contend with as many as 18 different taxes and charges on a single air ticket, with up to 70 per cent of the fare ending up in the hands of government agencies and regulators.
Okonkwo made the remarks recently during the inauguration of commercial flight operations at the Ekiti Agro-Allied International Airport, where he called on the National Assembly to urgently intervene and address the issue of multiple taxation confronting airline operators in the country. “We pray that the National Assembly will help us address multiple taxation plaguing the airline industry; we are charged about 18 taxes on one single ticket,” he said. “In many cases, about 70 per cent of the ticket fare goes to government agencies.”
According to the airline executive, the heavy tax regime has made it increasingly difficult for domestic carriers to remain competitive, invest in fleet expansion, and offer affordable fares to passengers. He argued that a significant reduction in taxes and charges would immediately reflect in lower ticket prices and stimulate air travel across the country. Okonkwo, who also serves as the spokesperson of the Airline Operators of Nigeria (AON), has consistently described the situation as “taxing airlines to death.” Throughout the year, he has used various public platforms, including appearances on Channels Television and Arise TV, to draw attention to what he calls “unexplainable taxes that don’t exist anywhere in the world.”
Beyond taxation, he noted that Nigerian airlines operate in a uniquely harsh financial environment, where access to credit comes at prohibitively high interest rates of between 30 and 35 per cent, compared to single-digit rates of 2 to 7 per cent obtainable by airlines in many other parts of the world. These factors, he said, combine to place domestic carriers at a severe disadvantage.
Despite the prevailing challenges, Okonkwo insisted that domestic air travel in Nigeria remains relatively affordable when viewed in the context of operating realities. Speaking recently on Channels Television, he maintained that “internal air travel within Nigeria is one of the cheapest,” pushing back against public perceptions that airlines are exploiting passengers. He attributed recent spikes in ticket prices largely to seasonal demand, particularly during festive periods, as well as costs that are denominated in foreign currency, such as aviation fuel, aircraft maintenance, spare parts, and insurance.
According to him, these expenses are heavily influenced by fluctuations in the exchange rate and are beyond the control of local operators. Industry data appear to support Okonkwo’s claims about the scale of taxation in the sector.
Studies by the African Airlines Association (AFRAA) have shown that Nigeria ranks among the highest in Africa in terms of aviation-related taxes and charges. On international routes, passengers departing from Nigeria reportedly pay an average of about $180 in taxes and fees—almost three times the continental average of $68. For domestic operators, the burden is compounded by levies imposed by multiple agencies, including the Federal Airports Authority of Nigeria (FAAN), the Nigerian Civil Aviation Authority (NCAA), and other service providers.
These charges include passenger service charges, security levies, landing and parking fees, navigational charges, and a statutory five per cent ticket sales charge, among others. However, the NCAA has pushed back against some aspects of the claims, stating that no domestic airline pays exactly 18 different taxes directly to the regulator.
The authority has described some of the figures circulating in public discourse as inaccurate, arguing that certain charges are either misrepresented or aggregated in a way that overstates the regulator’s role. Even so, industry stakeholders argue that while individual agencies may dispute specific figures, the cumulative effect of charges across the aviation ecosystem remains undeniable.
According to them, the fragmented nature of taxation and fees creates an unsustainable operating environment that ultimately drives up costs for passengers. Some analysts warn that the situation could lead to long-term consequences for the Nigerian aviation market, including capital flight, as travellers increasingly choose foreign airlines for regional and international routes.
Others fear that local carriers may be forced to scale back operations or exit the market entirely if reforms are not implemented. Okonkwo has therefore called for urgent and comprehensive reforms, including the harmonisation or reduction of taxes and improved access to affordable financing. He believes such measures are critical not only for the survival of domestic airlines but also for achieving Nigeria’s broader economic and connectivity goals. “If taxes are removed or reduced, it will definitely reflect on the cost of the ticket,” he said, adding that a more supportive policy environment would encourage growth, job creation, and increased investment in the aviation sector.
The debate over aviation taxes has intensified in recent weeks as the festive travel season peaks, with reports of domestic airfares exceeding N300,000 on some popular routes. As passengers express frustration over rising costs, calls for legislative intervention have grown louder, placing renewed pressure on lawmakers to examine the structure of taxes and charges imposed on the industry.
For now, airline operators continue to urge the government to strike a balance between revenue generation and the sustainability of an industry widely regarded as critical to national development, regional integration, and economic growth.
