Nigerian Airlines to Increase Yuletide Fares Due to New Tax Bill Implementation

Nigerian airlines are set to pass a new tax bill to passengers, leading to potential fare increases during the upcoming Yuletide season. The Federal Government confirmed that from January 1, 2026, airlines will resume paying import duty and Value Added Tax (VAT) on commercial aircraft engine spare parts and air tickets.

The Nigerian Revenue Service (NRS) stated that the full implementation of the 2025 Tax Reforms Act will apply to the aviation sector, ending previous exemptions that helped keep ticket prices lower. Airline operators, including Air Peace and Max Air, are already bracing for the impact on ticket prices, with concerns that the additional costs could strain the industry still recovering from the pandemic.