Taxes Threaten Nigeria's Aviation Sector, Consuming 35% Revenue

The Centre for the Promotion of Private Enterprise (CPPE) has reported that taxes are consuming 35% of airline revenues in Nigeria, posing a significant threat to the aviation sector. Muda Yusuf, the Chief Executive Officer of CPPE, stated that the current cost structure imposed by aviation agencies is excessively raising operational costs for airlines, which already operate on thin margins.

The CPPE highlighted that cumulative impacts from ticket sales, cargo fees, passenger service charges, landing and parking charges, inspection fees, and duties on aircraft spare parts are significantly eroding airline profits. This situation weakens the sector's resilience, especially as air travel becomes increasingly important amid growing security concerns.

The CPPE cautioned that persistent financial pressures could affect service delivery and raise ticket prices, potentially posing safety risks. The group welcomed recent government measures for short-term support but emphasized that deeper cost distortions need to be addressed.

Additionally, the International Air Transport Association (IATA) has indicated that by December 1, 2025, an additional security charge will be imposed, further increasing the total security fee per ticket.