The Chairman of Air Peace, Allen Onyema, has called on President Bola Tinubu to establish an Aviation Tax Review Panel and immediately remove the 5 per cent tax imposed on passenger tickets, warning that the current tax regime is threatening the survival of Nigerian airlines.
Speaking on the challenges facing the aviation industry, Onyema noted that domestic carriers have repeatedly raised concerns over the multiple taxes and charges imposed on their operations. According to him, the 5 per cent ticket tax has become an additional burden on airlines already grappling with rising operational costs, foreign exchange challenges, and infrastructure deficits.
He stressed that unless aviation-related taxes and charges are reviewed, more airlines could collapse, worsening the industry’s already troubling record of business failures.
“Airlines should not be used as direct revenue-generating tools for the government,” Onyema said, arguing that the sector requires policy support to stimulate growth rather than additional financial pressures.
The Air Peace boss pointed out that Nigeria has one of the highest airline mortality rates in the world, with more than 70 airlines having ceased operations over the years. He warned that without urgent intervention, the trend could continue, leading to job losses, reduced connectivity, and negative impacts on the nation’s economy.
Onyema urged the Federal Government to engage stakeholders in the aviation sector to develop sustainable policies that will encourage investment, improve airline profitability, and strengthen the industry’s contribution to national development.
