S’holders Renew Calls For Suspension Of Taxes, Levies On Local Airlines

STAKEHOLDERS in Nigeria’s aviation sector have renewed calls for the Federal Government to suspend multiple taxes and levies imposed on domestic airlines and flight tickets, warning that the charges are crippling operators and pushing airfares beyond the reach of many travellers.

Industry groups said easing the tax burden had become urgent to stabilise airline operations, keep domestic routes open and make air travel more affordable amid rising operating costs, particularly the soaring price of aviation fuel.

The renewed appeal followed concerns by local carriers over the cost of Jet A1 fuel, with some operators claiming prices had risen sharply in recent weeks.

The Airline Operators of Nigeria had earlier threatened to suspend flight operations from April 20 over the rising cost of fuel, but later announced a temporary suspension of the planned shutdown after intervention by the Minister of Aviation, Festus Keyamo.

Stakeholders said about 35 percent of airfare paid by passengers consists of taxes, levies and statutory charges, making Nigerian domestic tickets among the most expensive in the region.

They urged the Ministry of Aviation to direct the Federal Airports Authority of Nigeria and other aviation agencies to temporarily reduce or suspend levies on local airlines and flight tickets for at least three months.

According to them, such relief would help airlines remain in business and support growth in the sector.

Managing Director of Flight and Logistic Solutions Limited, Amos Akpan, listed some of the charges faced by operators to include cargo sales tax, passenger sales tax, charter sales tax, passenger service charges, fuel levies, import duties on aircraft spare parts, company taxes and various regulatory fees.

He said airlines also pay navigation charges, aircraft landing fees, parking charges, inspection fees, certification fees and bank transaction deductions.

Akpan noted that a one-way ticket with a base fare of N148,000 could attract about N55,000 in taxes and additional charges.

He added that the International Civil Aviation Organisation recommends that member states remove taxes such as Value Added Tax on aircraft, spare parts and aviation consumables.

Also speaking, Ado Sanusi said multiple taxation was undermining airline operations and threatening the survival of domestic carriers.

He said a downward review or temporary suspension of charges would help airlines withstand the current pressure of high fuel prices.

Meanwhile, Keyamo appealed to airlines to suspend any plan to raise ticket fares or halt operations, assuring operators that the government was taking their concerns seriously.

He announced a high-level emergency stakeholders’ meeting scheduled for April 22, in Abuja to seek a practical and sustainable resolution to the crisis.

The minister said any immediate increase in ticket prices would place additional hardship on Nigerians, reduce demand for air travel and limit accessibility.

He added that shutting down operations would negatively affect the economy, disrupt logistics networks and weaken public confidence in the aviation sector.

In a related development, the Nigerian Midstream and Downstream Petroleum Regulatory Authority dismissed fears of an aviation fuel shortage, stating that the country currently has 74 days of combined inland and refinery stock.

The agency said the aviation fuel market remains adequately supplied and that current retail prices range between N1,960 and N2,800 per litre, contrary to claims of N3,300 per litre.

It also stated that the ex-gantry price from Dangote Petroleum Refinery and Petrochemical Company stood at N1,879 per litre as of April 16.

Stakeholders, however, insisted that unless taxes and operational charges are reviewed, domestic airlines may still face severe financial strain despite improved fuel supply.