The Chairman and Chief Executive Officer of Air Peace Limited, Dr Allen Onyema, has called on President Bola Ahmed Tinubu to intervene in the aviation sector’s mounting tax and charges burden, warning that the survival of Nigerian airlines remains at risk.
Onyema said the country’s aviation industry could experience significant growth if the President is made aware of the financial pressures confronting local carriers, particularly the 5 per cent Ticket Sales Charge (TSC) payable to the Nigeria Civil Aviation Authority (NCAA).
Speaking at the 30th annual conference of the League of Airport and Aviation Correspondents (LAAC) in Lagos, Onyema argued that the current system places excessive financial pressure on airlines and contributes to the high rate of airline failures in Nigeria.
He proposed replacing the percentage-based Ticket Sales Charge with a fixed amount attached to each ticket, saying the arrangement would provide greater predictability for airlines while still generating revenue for aviation agencies and government.
According to him, the proposed adjustment would create a more sustainable balance between government revenue needs, airline profitability and the interests of passengers.
Onyema also appealed to President Tinubu to address Nigeria’s unfavourable operating environment, citing concerns raised by the International Air Transport Association (IATA) over the high cost of running airlines in the country.
He recalled that the President previously approved the removal of a 4 per cent Free on Board (FOB) levy imposed on airlines after the industry raised concerns about its impact on their operations.
The Air Peace boss said the intervention demonstrated the positive impact presidential action could have on the aviation sector.
He further disclosed that following the removal of the levy, he fulfilled his promise to create 1,000 jobs for Nigerians. According to him, about 78,000 Nigerians applied for the positions, from which 1,000 young people were eventually employed.
Onyema maintained that the survival and growth of indigenous airlines would remain difficult unless the government reviews the numerous taxes and charges imposed on operators.
He also cited industry reports indicating that more than 60 commercial airlines have collapsed or defaulted in Nigeria since independence, with over 20 reportedly shutting down within the past two decades.
He stressed that reducing the financial burden on airlines would not only protect operators but also strengthen aviation agencies, create more jobs and ultimately benefit passengers.
Onyema expressed optimism that the situation could change if President Tinubu engages directly with airline operators, insisting that a sustainable aviation industry would benefit the government, businesses and the travelling public.
