IATA Flags Nigeria Among World’s Costliest Countries For Airline Operations

The International Air Transport Association (IATA) has again identified Nigeria as one of the most expensive countries in the world for airline operations, citing high taxes, charges, and operational costs that continue to constrain the growth of the aviation sector.

Speaking at the IATA Annual General Meeting (AGM) in Brazil, the association’s Regional Vice President for Africa and the Middle East, Kamil Al-Awadhi, said that despite ongoing reforms being championed by the Minister of Aviation and Aerospace Development, Festus Keyamo, the operating environment for airlines in Nigeria remains challenging.

According to Al-Awadhi, the high-cost structure has made it difficult for airlines to remain competitive and profitable, limiting the industry’s ability to achieve its full growth potential.

He noted that excessive taxes, airport charges, and other operational expenses continue to place a significant burden on airlines across the region, with Nigeria ranking among the most difficult markets from a cost perspective
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To address the challenge, Al-Awadhi called on member states of the Economic Community of West African States (ECOWAS) to implement the proposed 25 per cent reduction in aviation taxes and charges. He said the measure would lower the cost of air travel, stimulate passenger traffic, and enhance the competitiveness of airlines operating within West Africa.

His remarks echoed concerns previously raised by the Chairman of United Nigeria Airlines, Prof. Obiora Okonkwo, who described Nigeria as one of the most heavily taxed aviation jurisdictions in Africa.

Okonkwo said the numerous levies imposed on airlines have contributed significantly to high ticket prices and reduced the competitiveness of Nigerian carriers compared to operators in neighbouring countries.

He noted that passenger taxes at Nigerian airports are considerably higher than those in some West African countries. According to him, a passenger tax in Nigeria stands at about $100, compared to approximately $60 in Ghana.

The airline executive further disclosed that taxes and charges account for about $116 on a Lagos–Accra return ticket before the actual airfare component is added.

Okonkwo urged the Federal Government to streamline aviation-related charges through a single-window financial framework and reduce multiple taxation, warning that excessive costs ultimately hinder passenger movement and economic growth.

He stressed that affordable air transport is essential for facilitating trade, investment, and regional integration, adding that reducing the financial burden on airlines would benefit both operators and passengers across the region.