Nigerian airlines are battling more than 54 taxes, fees and regulatory charges imposed by government agencies, a burden operators say is pushing up airfares, squeezing profit margins and threatening the survival of domestic carriers.
Air Peace Chairman, Allen Onyema, raised the concern on Thursday at the 30th Annual Conference of the League of Airport and Aviation Correspondents (LAAC) in Lagos, calling for the urgent harmonisation and reduction of aviation taxes and charges.
Onyema said the aviation sector contributes about $2.5 billion annually to Nigeria’s Gross Domestic Product (GDP) and supports more than 217,000 jobs.
He argued that the industry should be treated as a catalyst for economic growth rather than primarily as a source of government revenue.
According to him, aviation generates wider economic benefits through tourism, hospitality, cargo, trade, employment and national connectivity.
“You don’t use airlines per se to raise revenue for the nation. Airlines are not used to raise revenue directly, but indirectly. They energise the ecosystem for government to make money through tourism, economic integration and so many other things,” he said.
Airlines face more than 54 charges
Onyema said Nigerian airlines currently contend with about 54 different taxes, fees and charges imposed by major government institutions, including the Nigeria Civil Aviation Authority (NCAA), Federal Airports Authority of Nigeria (FAAN), Nigerian Airspace Management Agency (NAMA) and Nigeria Revenue Service (NRS).
He said FAAN alone collects about 18 different payments from airlines, covering electricity, counter usage, boarding bridges, office rent, parking, landing, cargo and terminal-related services.
NAMA, he added, collects five major charges, including en-route, terminal navigation, overflight, clearance and extension charges.
For the NCAA, Onyema listed the five per cent Ticket Sales Charge (TSC), five per cent Cargo Sales Charge (CSC), five per cent Excess Baggage Charge (EBC), licensing and medical certification fees, aircraft certification charges, Air Operator Certificate (AOC) fees, maintenance organisation charges and other regulatory payments.
He said only about six of the numerous charges are directly incorporated into every flight ticket sold in Nigeria.
These include the Passenger Service Charge (PSC), Common User Terminal Equipment (CUTE) charges, Passenger Terminal Facility Charge, five per cent TSC, five per cent EBC and the $20 NCAA security levy.
He also cited the $11.50 Advanced Passenger Information System (APIS) levy, introduced by the NCAA in December 2025, as another charge affecting the cost of air travel.
According to Onyema, the cumulative effect of the charges could add about N25,000 to domestic tickets, depending on the route and airline, while taxes and statutory charges on international journeys could reach $150 to $180.
High costs threaten airline survival
Onyema said the cost burden had contributed to the high mortality rate among Nigerian airlines, noting that more than 60 carriers had shut down or become defunct over the years.
He said African airlines already operate at a significant cost disadvantage compared with carriers in other regions, while high aviation fuel prices, insurance costs and aircraft leasing expenses further erode their margins.
Also speaking at the conference, United Nigeria Airlines Executive Chairman, Prof. Okonkwo, dismissed allegations that domestic operators failed to remit the five per cent Ticket Sales Charge to the NCAA.
He insisted that Nigerian airlines had maintained compliance with the regulatory agency before recent labour disputes.
Okonkwo, who is also the spokesperson of the Airline Operators of Nigeria (AON), said all airlines were meeting their financial obligations to the government before February this year.
According to him, payment difficulties emerged after the rising cost of aviation fuel put additional pressure on operators.
“Before February this year, there were no payment problems. All airlines were paying. The AON issue only became a problem because of the Gulf crisis. AON was the first to cry out. We wrote to the President, explaining that we could no longer pay these charges. We requested either a complete suspension of charges or temporary relief during the aviation crisis, and the request was granted. The President agreed and waived 30%,” Okonkwo disclosed.
Following the waiver, Okonkwo said airlines met with the NCAA and the Minister of Aviation to establish a structured repayment framework for outstanding obligations.
He said the NCAA requested that operators pay 10 per cent of their legacy debts within a specified period, with the balance to be settled through instalments.
“The airlines complied with this directive. The airlines did this. The director met with operators in Lagos and Abuja, and we developed a payment plan. This plan was in place. When you have a payment plan in place, it does not mean you will default. We were making regular payments according to the agreement we had with the NCAA until we heard about the labour union, problem,” he said.
Okonkwo said United Nigeria Airlines also established a payment mechanism with the NCAA to demonstrate its commitment.
“At United Nigeria, to ensure no issues, we opened joint accounts with NCAA at Nigerian banks. The account was structured so NCAA could withdraw funds directly without asking us,” he explained.
Airlines question value of charges
Okonkwo disputed claims that operators were non-compliant and questioned the value airlines receive from the charges they pay.
“When people discuss money not remitted or paid by operators, they fail to mention how much operators do pay. When they talk about unpaid money, I ask: what have you done with all that we have already paid? That is the proof, and that is my concern,” he said.
He also questioned the additional costs incurred by airlines when regulatory agencies carry out inspections.
“Beyond what we pay, we do not receive adequate value. When different stakeholders and agencies are asked to explain this, they simply say the government takes a large chunk of this money. The question is: for what?” he said.
Okonkwo said airlines sometimes pay regulatory costs separately when agencies inspect aircraft outside Nigeria.
“When we request NCAA to inspect our aircraft in London or America, they come, and we pay them. We do all this 100% in advance. But when you speak of a 5% charge, it remains unclear,” he said.
“When you take 5% of any business, a business I borrowed money to run, a business that costs me sleepless nights, that is too much for anyone to extract from it. And this is on top of taxes we already pay. The call for removal of this 5% must not stop. It must continue until we remove it. We would not be able to have smooth operations until this is resolved.”
AON speaks on labour dispute
Okonkwo said the unions’ desire to advocate for airline workers’ welfare was understandable but maintained that airlines remained among Nigeria’s best-paying sectors.
He criticised what he described as a “shameful display” at the airport by unions during the dispute.
“That shameful display at the airport by unions would have brought us to our lowest point if not for the reactions and condemnation from so many gathered here,” he said.
He commended the Aviation Roundtable president and aviation journalists for their responses to the dispute.
“I especially commend the Aviation Roundtable President whose loud voice was heard worldwide. I also commend aviation reporters who reported fairly but we expected condemnation from quarters that should have known better but that did not come and we remain concerned,” he said.
The operators’ concerns have renewed calls for a review of Nigeria’s aviation charges, with airlines arguing that a more sustainable cost structure is necessary to keep domestic carriers operating and support the wider economic benefits generated by the sector.
