Nigerian Aviation Stakeholders Concerned Over New Tax Regime Impact on Airlines
Aviation stakeholders in Nigeria, including Chinedu Ez and Dr. Samson Fatokun, are worried about the impact of the new tax regime set to begin in January 2026. The Federal Inland Revenue Service (FIRS) will remove exemptions on value-added tax (VAT) for aviation assets like commercial aircraft, engines, and spare parts.
This move could jeopardize Nigerian airlines' viability due to high taxation and other disincentives like insurance premiums and maintenance costs. Dr. Fatokun emphasized the need for Nigeria to align its tax laws with international standards set by bodies like the International Air Transport Association (IATA) and the International Civil Aviation Organization (ICAO).
The Economic Community of West African States (ECOWAS) is already reviewing tax systems to reduce flight costs in the region.
Plus234Feed summary based on reporting from This Day. Read the original report below.
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