Airlines seek audience with President Tinubu over multiple taxes

By Philippine Duru

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Airline operators in Nigeria are intensifying efforts to secure a meeting with President Bola Ahmed Tinubu as concerns mount over the growing financial burden imposed by multiple taxes, regulatory charges, and operational costs threatening the sustainability of the aviation industry.

The move comes amid increasing agitation by members of the Airline Operators of Nigeria (AON), who have called for an urgent review of the numerous taxes, levies, and charges imposed on airlines, warning that the current operating environment is becoming increasingly difficult for carriers to survive.

Industry stakeholders argue that while the aviation sector remains a critical driver of economic growth, trade, tourism, and regional integration, operators continue to grapple with rising costs driven by foreign exchange volatility, high fuel prices, infrastructure deficits, aircraft maintenance expenses, and multiple government-imposed charges.

According to airline executives, the combination of these factors has significantly increased the cost of doing business and placed immense pressure on operators already facing thin profit margins.

The proposed meeting with President Tinubu is expected to focus on policy interventions that could help ease the financial burden on domestic carriers and create a more competitive environment for the aviation industry.

AON officials have stressed that without urgent government action, airlines may be forced to further increase airfares, reduce routes, cut operational capacity, or delay expansion plans, developments that could negatively affect passengers and the broader economy.

Industry leaders argue that Nigerian airlines operate under one of the most challenging business environments in Africa, paying numerous charges to multiple agencies while simultaneously dealing with soaring aviation fuel costs and currency-related challenges.

The association has therefore urged the Federal Government to undertake a comprehensive review of aviation-related taxes and fees, with the aim of reducing duplication and creating a more sustainable framework for industry growth.

Stakeholders believe that a reduction in the cost burden on airlines would not only improve profitability but could also encourage investment, fleet expansion, route development, and job creation within the sector.

The latest concerns emerge as the aviation industry continues to recover from years of economic disruptions and operational challenges. While passenger traffic has shown signs of improvement, operators say revenue growth has not kept pace with the rapid increase in operating expenses.

In a related development, the Airline Operators of Nigeria has raised concerns over calls for an economic boycott involving South Africa, warning that such actions could have unintended consequences for aviation, trade, and bilateral economic relations.

The association cautioned that any disruption to economic ties between Africa’s two largest economies could negatively affect airlines, businesses, investors, and travelers who rely on strong commercial links between Nigeria and South Africa.

According to industry stakeholders, aviation serves as a critical bridge connecting businesses, investors, tourists, and government institutions across the continent. Any action that undermines these connections could affect passenger traffic, trade volumes, and investment flows.

AON emphasized the importance of maintaining open economic engagement while addressing concerns through diplomatic and policy channels rather than measures that could adversely affect businesses and consumers.

Analysts note that Nigeria and South Africa remain among Africa’s most significant economic partners, with extensive business relationships spanning banking, telecommunications, retail, manufacturing, energy, and aviation.

Several Nigerian airlines operate regional services that facilitate trade and travel between the two countries, while South African companies maintain substantial investments in Nigeria’s economy. Industry experts warn that disruptions to these relationships could have ripple effects across multiple sectors.

The association therefore urged policymakers to carefully evaluate the potential economic implications of any boycott-related actions and prioritize solutions that protect national interests without harming legitimate commercial activities.

Meanwhile, aviation stakeholders continue to advocate broader reforms aimed at strengthening Nigeria’s air transport sector. These include improved access to foreign exchange for airline operations, modernization of airport infrastructure, reduction of regulatory bottlenecks, and policies that encourage investment in local carriers.

Economic analysts argue that a thriving aviation industry is essential for national development, particularly as Nigeria seeks to expand trade, attract foreign investment, promote tourism, and strengthen regional connectivity under the African Continental Free Trade Area (AfCFTA).

They note that reducing the cost burden on airlines could improve competitiveness, lower ticket prices over time, and enhance the sector’s contribution to economic growth.

As airline operators await an opportunity to present their concerns directly to President Tinubu, industry participants remain hopeful that government intervention will help address longstanding challenges and create a more enabling environment for sustainable growth.

The outcome of the proposed engagement could prove pivotal for the future of Nigeria’s aviation industry, particularly at a time when operators are seeking relief from mounting operational costs while positioning themselves to take advantage of expanding opportunities within Africa’s rapidly evolving aviation market.