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Senate Wants Zero Customs Duty, VAT for Aviation Sector

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Aviation Sector

By Modupe Gbadeyanka

The federal government has been advised to consider exempting the aviation industry from the payment of customs duty and value added tax (VAT).

These exemptions would be for the importation of commercial aircraft and spare parts, according to the Senate, which debated the huge challenges facing the sector at the moment.

In March 2020, the federal government shut down the nation’s airspace as a result of the COVID-19 pandemic and operations were only allowed to resume six months after.

Even after the resumption, most airlines are struggling to operate at full capacity because of the various policies put in place to curb the spread of the virus. Some of them have asked for a bailout.

At the plenary on Tuesday, a member of the upper chamber of the parliament, Mr Adamu Aliero, moved a motion to look at the issues raised by operators in the industry.

He argued that the issues of multiple taxations, payment of import duty and commercial taxes raised by airline owners in Nigeria were genuine, calling on his colleagues to implore the federal government to take actions that would save the sector.

In his contribution, Mr Smart Adeyemi, threw his weight behind the motion, emphasising that “other countries gave bailout fund to their aviation sector” because the industry is key to the development of the economy.

“If airline operators say they can’t clear their goods because of VAT, then the government needs to look into that. The federal government should allow the aviation sector to be tax-free for at least three years,” the former president of the Nigeria Union of Journalists (NUJ), submitted.

At the end of deliberations, the federal government was asked to upgrade decaying infrastructures at the nation’s airports and fast-tracking the clearance of Aircraft-on-Ground (AOG), spare parts and facilitate the availability of jet air.

The government was also advised to fully implement the Executive Order on Zero Customs Duty and VAT on importation of commercial aircraft and aircraft spare parts and also implement the Executive Order of the removal of VAT and then eliminate multiple taxes, fees and charges on airlines.

The Senate also asked the Central Bank of Nigeria (CBN) to make foreign exchange readily and easily accessible for the sector and make interest rate a single digit for airlines which will reduce the cost of capital;

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

Travel/Tourism

Passengers to Enjoy Starlink Wi-Fi on Emirates’ Flagship A380

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Emirates A380 Starlink

By Aduragbemi Omiyale

Air travellers flying through Emirates will enjoy Starlink Wi-Fi onboard after the completion of the installation of the internet service on the company’s flagship A380.

The introduction of Starlink on the A380 builds on Emirates’ ongoing investment into redefining the customer journey, including one of the most ambitious retrofit programmes in aviation history.

The airline operator recently test-run this on a flight to Dubai, and it allowed passengers to enjoy seamless broadband while flying at 40,000 feet.

The Emirates A380 was one of the first commercial aircraft in the world to offer internet to its customers, with first-generation systems offering a total aircraft bandwidth of less than 1 Mbps. The installation and certification were accomplished in Newquay, UK.

With more A380s scheduled for accelerated installation throughout 2026, Emirates customers will soon enjoy a transformative leap in onboard connectivity with the ability to stream, game, browse, and work throughout their journey on personal devices.

The service will be complimentary for all customers, across all cabins, with easy sign-up and access. Future enhancements will include Live TV streaming over Starlink, initially on personal devices and later integrated into seatback screens.

So far, more than 650,000 Emirates customers have already flown on Starlink‑equipped flights, experiencing the benefits of next‑generation onboard connectivity firsthand.

As the world’s largest passenger aircraft, the A380 presents unique engineering challenges and opportunities. This industry-first Starlink configuration is designed to meet the demands of the A380’s ‘double-decker’ layout and high passenger capacity and is capable of delivering more than 2 Gbps of total aircraft bandwidth across the cabin.

Compared with the Emirates Boeing 777, the Emirates A380 features additional wireless access points and a third antenna to deliver an enhanced connectivity experience for its higher passenger capacity. Optimised inter‑deck integration supports a seamless Wi‑Fi experience, with customers able to enjoy high speeds depending on usage and device capability.

Starlink installations will soon begin at Emirates Engineering facilities in Dubai to accelerate deployment across the fleet.

Emirates is committed to bringing the best possible connectivity to its entire fleet at the earliest opportunity, with 25 Boeing 777-300ER aircraft already equipped with Starlink and the first A380 now joining service.

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Travel/Tourism

Nigeria Caps Jet Fuel Prices, Allows Airlines Buy on Credit to Avert Disruptions

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aviation fuel Jet A1

By Adedapo Adesanya

The Nigerian government is capping jet fuel prices and allowing airlines to get supplies on credit as part of efforts to avert flight ​disruptions caused by soaring fuel costs.

Reuters reported that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said in an internal document that aviation fuel should sell for N1,760 to N1,988 ($1.29 to $1.46) per litre in Lagos and N1,809 to ​N2,037 in Abuja, based on benchmarks from April 17 to April 23.

The decision follows ​emergency talks after airlines threatened to go on a strike, warning that jet fuel prices had jumped by more ​than 300 per cent, forcing fare increases and raising the risk of capacity cuts.

The strike was averted after the federal government met with the Airline Operators of Nigeria (AON) and other stakeholders.

President Bola Tinubu last week approved ‌30 per cent relief ⁠on airlines’ debts to aviation agencies and ordered fuel marketers, airlines and regulators to agree on a “fair” fuel price within 72 hours to prevent the sector-wide shutdown that would have impacted the country’s economy.

The talks also agreed to grant airlines a 30-day credit window to pay for fuel and ​tasked the aviation ​ministry with mediating debt ⁠disputes between operators and oil marketers, according to the document.

The NMDPRA also formed a technical committee, which recommended that fuel marketers sell ​directly to airlines within the indicated price range to cut ​costs and ⁠improve supply-chain transparency.

The committee also urged regulators to engage Dangote Petroleum Refinery and Petrochemicals over the increased premiums applied to international benchmarks used to price jet ⁠fuel.

Other recommendations ​include validating airside fuel distributors with adequate infrastructure, ​potentially reducing the number of authorised suppliers at airports, and considering jet fuel for Nigeria’s Crude-for-Naira initiative to ​limit airlines’ foreign exchange exposure. So far, the Crude-for-Naira has only been for upstream operations.

The cost of fuel has generally risen in the last two months due to the escalating war with Iran by the US and Israel, which has triggered one of the most severe energy shocks in decades. Oil prices are currently above $100 per barrel as markets react to escalating tensions and the risk of prolonged disruption.

At the centre of the crisis is the Strait of Hormuz, a chokepoint through which roughly one-fifth of global oil supply flows. With shipping constrained, the effects are cascading across the global economy, raising fuel costs, fueling inflation, and increasing the risk of economic slowdown across many economies. This is forcing airlines to raise fares, curb ⁠growth ​plans and rethink forecasts.

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US to Nigerian Travellers: Visa Overstays Not Good for Fellow Citizens

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Nigerian Travellers US Visa Overstays

By Adedapo Adesanya

The United States (US) has warned that visa overstays by Nigerian travellers could deny future opportunities for other aspiring applicants.

The United States embassy had earlier in February stated that compliance would help protect visa access for students and business travellers.

In a reminder statement posted on its official X handle on Monday, the US Mission in Nigeria advised that strengthening compliance helps protect visa access for students, business travellers, and families who travel responsibly.

“#Reminder: Visa overstays by Nigerian travellers can affect opportunities for their fellow citizens. Strengthening compliance helps protect access for students, business travellers, and families who travel responsibly. If you are aware of visa fraud, please report it to [email protected] or [email protected],” the statement read.

Last August, the Mission also announced that all non-immigrant visa applicants must now provide details of their social media accounts from the past five years.

In a statement, the embassy said applicants are required to disclose usernames or handles from every platform used within the period when completing the DS-160 visa application form.

“Visa applicants are required to list all social media usernames or handles of every platform they have used from the last 5 years on the DS-160 visa application form. Applicants certify that the information in their visa application is true and correct before they sign and submit,” the statement read.

The mission warned that omitting such information could result in visa denial and render applicants ineligible for future visas.

The DS-160 is the standard online form required for most US non-immigrant visas, including temporary business (B-1), tourism (B-2), student visas (F and M), and work-related categories such as the H-1B.

It insisted the new rules were designed to enhance security, they come amid repeated US criticism of governments accused of clamping down on free speech online.

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