Nigerian airlines are battling the burden of more than 54 taxes, fees and regulatory charges imposed by government agencies, with operators warning that the multiple levies are driving up airfares and threatening the survival of domestic carriers.
Chairman of Air Peace, Allen Onyema, raised the concern at the 30th Annual Conference of the League of Airport and Aviation Correspondents (LAAC) in Lagos on Thursday.
He called for the urgent harmonisation and reduction of aviation taxes and charges, arguing that the sector should be treated as a catalyst for economic growth rather than primarily as a source of government revenue.
According to Onyema, the aviation industry contributes about $2.5 billion annually to Nigeria’s Gross Domestic Product and supports more than 217,000 jobs.
Airlines Face More Than 54 Taxes and Charges
Onyema said Nigerian airlines currently contend with about 54 different taxes, fees and charges imposed by major government institutions, including the Nigeria Civil Aviation Authority (NCAA), Federal Airports Authority of Nigeria (FAAN), Nigerian Airspace Management Agency (NAMA) and Nigeria Revenue Service (NRS).
He said FAAN alone collects about 18 different payments from airlines, covering services such as electricity, counter usage, boarding bridges, office rent, parking, landing, cargo and terminal-related charges.
NAMA, he added, collects five major charges, including en-route, terminal navigation, overflight, clearance and extension charges.
Airlines also pay several regulatory charges to the NCAA, including the five per cent Ticket Sales Charge, five per cent Cargo Sales Charge, five per cent Excess Baggage Charge, licensing and medical certification fees, aircraft certification charges and Air Operator Certificate fees.
Taxes Add to Cost of Air Travel
Onyema said only about six of the numerous charges are directly incorporated into every flight ticket sold in Nigeria.
He further cited the $11.50 Advanced Passenger Information System levy introduced by the NCAA in December 2025 as another charge affecting air travel.
According to him, the cumulative effect of the charges could add about N25,000 to domestic tickets, depending on the route and airline, while taxes and statutory charges on international journeys could reach between $150 and $180.
High Taxes Threaten Airline Survival
The Air Peace chairman said the high cost burden had contributed to the difficult operating environment for Nigerian airlines, noting that more than 60 carriers had shut down or become defunct over the years.
He said African airlines already operate at a significant cost disadvantage compared with carriers in other regions, while aviation fuel, insurance, aircraft leasing and regulatory costs further squeeze their margins.
Onyema warned that excessive and overlapping taxes could become counterproductive by weakening the airlines that support tourism, hospitality, cargo, trade, employment and national connectivity.
“You don’t use airlines per se to raise revenue for the nation. Airlines are not used to raise revenue directly, but indirectly. They energise the ecosystem for government to make money through tourism, economic integration and so many other things,” he said.
Airlines Defend Compliance
Also speaking at the conference, United Nigeria Airlines Executive Chairman and Airline Operators of Nigeria spokesperson, Prof. Okonkwo, rejected claims that domestic airlines had failed to remit the five per cent Ticket Sales Charge to the NCAA.
He said airlines had been meeting their financial obligations before difficulties emerged amid rising aviation fuel costs and the wider industry downturn.
According to Okonkwo, airlines sought relief from the Federal Government after aviation fuel prices rose to about N3,300, with the government subsequently approving a 30 per cent waiver.
He said airlines later met with the NCAA and the Ministry of Aviation to establish repayment plans for outstanding obligations.
Okonkwo said airlines complied with the agreed arrangements and continued making payments until the recent labour dispute emerged.
He also questioned the value airlines receive from the various taxes and charges, arguing that operators already incur additional costs for regulatory services.
He called for the removal of the five per cent charge, saying the levy places an additional burden on airlines already operating under high costs.
