Nigeria's Aviation Sector Faces High Operational Costs

The aviation sector in Nigeria is grappling with high operational costs, which are hindering the viability and growth of local carriers. Kamil Al Awadhi, IATA's Regional Vice President for Africa and the Middle East, pointed out that Nigerian airlines are struggling to survive due to excessive taxation.

Despite efforts from Nigeria's Minister of Aviation and Aerospace Development, Festus Keyamo, the high cost environment remains a significant barrier. Al Awadhi urged ECOWAS member states to implement a proposed 25% reduction in aviation tax charges to lower travel costs and enhance airline competitiveness.

In Nigeria, two-thirds of ticket costs are attributed to taxes and fees, with 54 different charges imposed by four major government agencies, including the NCAA and FAAN. Professor Obiora Okonkwo noted that the multitude of taxes is a key driver of high airfares, calling for a review by the National Assembly to alleviate these burdens.