Nigeria’s airlines say new government taxes could shut down the sector, as President Bola Tinubu’s reforms reintroduce VAT on air tickets and customs duties on aircraft, engines, and spares from January 1, 2026.
“This policy will kill the airlines within 48 hours,” warned AON Vice Chairman and Air Peace CEO, Allen Onyema, citing thin margins, high FX costs, and multiple existing charges.
Government officials say the move is needed to expand Nigeria’s tax base and harmonise levies but insist there will be “no going back” once the law takes effect.
Operators fear the extra costs will push ticket prices up, reduce demand, and force carriers to ground planes or defer maintenance. A former aviation ministry director cautioned this could create “an undesirable safety outcome.”
Global aviation bodies urge governments to exempt air transport from VAT and import duties. IATA chief Willie Walsh said: “Adding new layers of taxation increases costs and risks, cutting connectivity.”
Analysts recommend phasing in VAT and restoring exemptions for safety-critical parts to protect both revenue and connectivity.
