Domestic airlines may collapse within 48 hours if new tax reforms take effect in January 2026, the Airline Operators of Nigeria (AON) has warned.
Speaking at the LAAC conference in Lagos, AON Vice President and Air Peace CEO, Allen Onyema, said the reinstated import duties and VAT on aircraft and spare parts would cripple an industry already burdened by excessive charges.
He noted that a similar waiver introduced five years ago had allowed airlines to renew fleets and stay afloat.
Aviation’s profit margins, Onyema stressed, are razor-thin, often 3-5% — making the new levies unsustainable.
He criticised the 5% ticket sales charge collected by the NCAA, arguing it limits airlines’ pricing flexibility. Onyema urged lawmakers to adopt a cost-recovery approach in line with ICAO principles.
He credited Aviation Minister Festus Keyamo for intervening but warned that unless the reforms are halted or amended, Nigeria risks an unprecedented shutdown of its domestic aviation sector.
