Airlines in Nigeria will, from January 1, 2026, resume the payment of import duties and Value Added Tax (VAT) on commercial aircraft, engines, spare parts, and air tickets – a policy reversal that ends the tax exemption introduced under the Buhari administration.
The decision was disclosed during a Business Webinar hosted by Aviation & Allied Business in partnership with the Federal Inland Revenue Service (FIRS), themed “Nigeria Tax Act (2025) & The Aviation Industry: Aviation Sector Enlightenment Initiative.”
Speaking at the event, Nkechi Umegakwe, Assistant Director of the Nigeria Revenue Service (formerly FIRS), said the government would fully implement the provisions of the Tax Reforms Act, stressing that there would be “no going back.”
She explained that, unlike the current regime where airlines enjoy waivers, all aviation operators must, from next year, remit VAT on their services, imports, and ticketing operations.
The reversal has already drawn criticism. The International Air Transport Association (IATA) faulted the policy shift, warning that Nigeria risks violating international treaties under the International Civil Aviation Organization (ICAO) and the Economic Community of West African States (ECOWAS), both of which discourage fiscal barriers that impede regional and global air transport.
The aviation industry, already grappling with high operational costs and foreign exchange shortages, is expected to feel the impact of the renewed taxation, with stakeholders warning it could drive up ticket prices and undermine Nigeria’s competitiveness as a regional aviation hub.
