Economy

Airlines, stakeholders reject new aviation tax burden

Published

11 months ago

September 12, 2025

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Airline operators in Nigeria’s aviation industry, backed by international and local stakeholders, have rejected the Federal Government’s plan to impose additional taxes on scheduled airlines under the Nigeria Tax Act 2025, warning that the move could devastate the sector and worsen the plight of passengers already facing record-high ticket prices.

The operators made their objections known during a Business Webinar held on Thursday with the theme “Nigeria Tax Act (2025) and the Aviation Industry.” The session, monitored by our correspondent, featured strong opposition led by Dr Samson Fatokun, Area Manager for West and Central Africa at the International Air Transport Association.

Stakeholders argued that the aviation sector is already overburdened by excessive charges and levies. Domestic operators currently pay Passenger Service Charge, Ticket Sales Tax, Cargo Sales Charge, five per cent on all aviation contracts, and a $20 security levy.

Recently, the Advance Passenger Information System introduced charges of $11.50 per passenger on each flight leg. Passengers have borne the brunt of these costs, with domestic airfare doubling in the past year, forcing many Nigerians to abandon air travel for road transport.

Capt. Edward Boyo, founder and Managing Director of Landover Company Limited, described the reforms as “a disadvantage to the growth of Nigeria’s aviation sector.” He appealed to President Bola Tinubu and Federal Inland Revenue Service Chairman, Dr Zacch Adedeji, to review the charges.

“The country’s economy cannot grow without aviation. Jobs cannot be created if nothing is done to improve the fortunes of this industry. If these tax burdens persist, operators may have no choice but to raise fares further,” Boyo warned.

Representing the government, the Assistant Director and Tax Policy Adviser at the FIRS, Mrs Nkechi Umegakwe, insisted that the new tax laws followed due diligence and were designed to strengthen compliance, boost revenue, and align Nigeria’s tax system with global standards.

She explained that from January 1, 2026, airlines would be required to pay Value Added Tax on their services, including the importation of commercial aircraft, engines, spare parts, and air tickets. “VAT is a consumption tax borne by end users, not suppliers. Once the reforms become operational, whatever airlines bring in—aircraft, engines, spare parts—will be liable to VAT,” she stated.

Umegakwe stressed that the reforms are part of a comprehensive fiscal strategy aimed at enhancing Nigeria’s ease of doing business while raising much-needed government revenue.

But Dr Fatokun of IATA countered that the policy directly contradicts international treaties and agreements Nigeria has signed. He reminded the government that under International Civil Aviation Organisation rules, to which Nigeria is a signatory, international air transportation of passengers is explicitly exempt from taxation.

He also cited a Supplementary Act of the Economic Community of West African States signed on December 14, 2004, which prohibits taxation on the transportation of passengers and goods by air within member states. “Nigeria cannot sign international and regional treaties only to breach them through domestic legislation. That would portray us as unserious in the comity of nations,” Fatokun warned.

He emphasised that any new tax regime must respect Nigeria’s treaty obligations, noting that even past attempts to impose VAT on domestic air passenger services generated disputes.

Industry experts warn that the aviation sector is approaching a breaking point. The rising cost of operations, driven by multiple levies, foreign exchange volatility, and high fuel costs, has already led to ticket price hikes, reducing demand for air travel.

Capt. Samuel Caulcrick, an economist and former Rector of the Nigerian College of Aviation Technology, appealed for the exclusion of the sector from additional tax burdens. “The airlines are being choked. Without relief, operators will collapse under these costs,” he said.

Stakeholders stressed that the aviation industry plays a pivotal role in economic growth, connectivity, and job creation. They argued that overtaxing the sector will undermine its ability to support trade, investment, and regional integration.

Boyo urged the Federal Government to classify aviation as a “priority sector” in its tax framework. “The government must get acquainted with international rules binding our aviation industry. If properly supported, aviation can drive economic expansion and employment opportunities,” he said.

For ordinary Nigerians, the implications are clear: more expensive air tickets. Already, airfares have doubled within a year, with operators blaming operational costs and excessive taxation. Should VAT be imposed on imported aircraft, parts, and tickets, airlines warn that the costs will be passed down to passengers.

Industry analysts fear this could reverse Nigeria’s modest gains in air connectivity, especially at a time when regional integration under the African Continental Free Trade Area (AfCFTA) depends heavily on efficient air transport.

Across the board, operators, economists, and international regulators are appealing to President Tinubu to intervene before January 2026. They argue that while tax reform is important for government revenue, aviation should not be treated the same as other industries given its international legal frameworks and critical role in economic development.

As the countdown to the implementation date begins, the industry remains divided between a government pushing for fiscal reforms and operators warning of an existential threat. The coming months will determine whether Nigeria opts to renegotiate its aviation tax framework in line with treaty commitments or risk worsening a sector already in turbulence.

Economy

Cardoso, Okonjo-Iweala to lead Africa emerging markets forum

Published

1 day ago

July 27, 2026

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The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, and the Director-General of the World Trade Organisation (WTO), Dr Ngozi Okonjo-Iweala, will headline the 7th Africa Emerging Markets Forum scheduled to hold in Abuja on July 29 and 30, 2026.

The two global economic leaders are expected to feature in a high-level fireside dialogue that will focus on how African economies can navigate growing global uncertainties, sustain reform efforts, deepen regional integration and unlock long-term growth opportunities.

Hosted by the Central Bank of Nigeria in partnership with the Emerging Markets Forum (EMF) and the Centre for the Study of the Economies of Africa (CSEA), the forum will bring together senior policymakers, central bankers, ministers, economists, development partners and private-sector leaders from across Africa and beyond.

The event, which will take place at the CBN Headquarters in Abuja, is themed “Building Resilience Amidst Geoeconomic Uncertainties.”

Organisers said discussions will centre on practical policy responses to an increasingly fragmented and unpredictable global economic landscape.

The forum will also feature keynote addresses from the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and the Minister of Science, Technology and Innovation, Dr Kingsley Udeh, highlighting the role of coordinated fiscal, monetary and innovation policies in driving Africa’s economic transformation.

Other notable participants expected at the gathering include Indermit Gill, Chief Economist and Senior Vice President for Development Economics at the World Bank Group; Harinder Kohli, Founding Director and Chief Executive of the Emerging Markets Forum; and Professor Adamu Ahmed, Vice-Chancellor of Ahmadu Bello University.

Over the two-day event, participants will examine issues shaping the future of emerging economies, including macroeconomic stability, regional integration, cross-border payments, financial technology, infrastructure development, foreign direct investment, technology transfer and artificial intelligence.

Deliberations will also focus on food price volatility, inflation management and the effectiveness of monetary policy transmission in fragile and post-crisis economies.

According to the organisers, the forum is designed to encourage open dialogue on strategic economic challenges facing emerging markets while identifying practical and adaptable policy solutions.

They noted that the event reflects the commitment of the Central Bank of Nigeria and its partners to strengthening regional cooperation, promoting evidence-based policymaking and advancing innovative approaches that support sustainable and inclusive economic growth across Africa.

Economy

Again, NNPCL Increases Fuel Price For Second Time In Two Days

Published

5 days ago

July 23, 2026

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The Nigerian National Petroleum Company Limited, NNPCL, has increased the pump price of Premium Motor Spirit, PMS at its retail outlets for the second time in less than two days.

A market survey by DAILY POST showed that NNPCL raised its petrol price to N1,335 per litre on Wednesday from N1,270 per litre on Tuesday.

This means that the state-owned filling station increased its fuel price by N65 per litre.

The new price has been implemented at NNPCL filling stations in Wuse Zone 6 (Berger), Zone 4, and other outlets in Abuja and its environs.

Recall that on Tuesday, NNPCL increased its petrol pump price by N115 per litre to N1,270 per litre.

The latest increase comes amid continued petrol price volatility in the country’s downstream oil sector following Dangote Refinery’s resumption of the sale of refined petroleum products in U.S. dollars.

DAILY POST reports that crude oil prices rose by nearly 4 percent on Wednesday as airstrikes intensified in the Middle East.

Economy

Old telecom rules can’t handle AI, digital era, says NCC

Published

6 days ago

July 22, 2026

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The Nigerian Communications Commission has said Africa’s telecommunications regulators must overhaul traditional regulatory approaches to keep pace with rapid technological changes, warning that existing frameworks were no longer adequate for an industry increasingly driven by artificial intelligence, satellite services, cloud computing and digital public infrastructure.

The Executive Commissioner for Stakeholder Management at the NCC, Rimini Makama, stated this on Tuesday in Abuja during the Head of Regulators Roundtable held on the sidelines of the ongoing 7th Ordinary Session of the Conference Preparatory Committee of the African Telecommunications Union.

Makama said the telecommunications landscape had become significantly more complex, requiring regulators to rely on data and market intelligence rather than conventional regulatory methods.

“Our discussion today turns on one question that matters to every regulator in this room. How do we use data and evidence to make decisions that are smarter, more transparent, and more focused on our consumer? Our markets are no longer simple,” she said.

She added, “Broadband is expanding, satellite services are arriving, AI, cloud computing, and digital public infrastructure are reshaping our sector. The old regulatory approaches were built for a simpler time. They are no longer enough.”

According to her, regulators across Africa now possess unprecedented volumes of technical, market and consumer data, but the real challenge lies in converting that information into better regulatory decisions.

“To stay ahead of the problem and not just react to it, we need trusted intelligence,” Makama said.

She explained that because African digital markets were becoming increasingly interconnected, regulators faced similar responsibilities in protecting consumers, promoting competition, attracting investment and strengthening network resilience.

“The challenge is not collecting it. The challenge is turning it into better decisions,” she said.

Makama said the NCC had developed a regulatory intelligence ecosystem that integrates multiple data sources, including quality of service and quality of experience indicators, consumer complaints, compliance analytics and market intelligence to support evidence-based policymaking.

“It brings several data sources into one place, so that our decisions rest on evidence, quality of service, and quality of experience data, consumer complaints, compliance analytics, and market intelligence. We will walk you through some of the recent cases where this intelligence led to real and measurable outcomes,” she said.

She urged regulators across the continent to deepen collaboration by sharing practical experiences and developing trusted approaches to data verification, advanced analytics and consumer-focused regulation.

Makama also challenged participants to examine how regulators could ensure the independence and accuracy of regulatory data, remove barriers to information sharing and measure consumer experience beyond conventional quality-of-service metrics.

Earlier, the Executive Vice-Chairman of the NCC, Dr Aminu Maida, said African regulators were increasingly confronted with common challenges despite operating under different legal and institutional frameworks.

According to him, discussions among regulators now routinely revolve around investment, infrastructure resilience, satellite communications, cybersecurity, affordability, artificial intelligence and emerging technologies.

“We may regulate markets of different sizes, operate under different legal frameworks, and respond to different national priorities. But the realities of our work are often remarkably similar,” Maida said.

He added, “Someone asks, how are things back home? Five minutes later, we are discussing investment, infrastructure resilience, satellite services, cyber security, affordability, artificial intelligence, or the latest technology that has arrived just in time to test the regulatory framework we thought had finally settled.”

Maida said such shared experiences underscored the need for stronger collaboration among African regulators to avoid addressing similar problems independently.

“The challenge that one regulator is trying to solve has already been encountered in one form or another by a colleague elsewhere on the continent. So, the question really is how we make that exchange of experience more deliberate, more systematic, and more useful to our institutions,” he said.

He described the roundtable as an opportunity to strengthen evidence-based regulation by encouraging the use of data, market intelligence and practical experience in policymaking.

Also speaking, the Executive Commissioner, Technical Services, Sunday Oshadami, said the NCC had prioritised transparency by ensuring operators clearly understood regulatory obligations and by making key performance information available to subscribers.

He said the commission had also invested in satellite monitoring capabilities to strengthen oversight of satellite communications and improve regulatory compliance.

According to Oshadami, the commission had established facilities to monitor developments in satellite communications and continued to invest in standard monitoring solutions to support effective regulation as new technologies gain prominence.

The PUNCH earlier reported that stakeholders in Nigeria’s telecommunications sector on recently backed the Nigerian Communications Commission’s draft business rules for Mobile Virtual Network Operators, while urging the regulator to strengthen enforcement to resolve persistent operational and commercial disputes between MVNOs and Mobile Network Operators.