Travel/Tourism
How New Tax Laws Will Benefit Aviation Industry—Oyedele
By Adedapo Adesanya
The federal government has defended Nigeria’s new tax laws, insisting that the reforms will ease, rather than worsen the financial pressure on the aviation industry.
According to the Presidential Fiscal Policy and Tax Reforms Committee, the new framework directly addresses several long-standing tax issues that have driven up airline operating costs over the years.
In a detailed explanation by the Committee’s Chairman, Mr Taiwo Oyedele, the government acknowledged the genuine challenges facing airlines, including multiple taxes, levies and regulatory charges.
This comes after the chairman of Air Peace, Mr Allen Onyema, cautioned that Nigeria’s domestic aviation sector faces a serious financial strain as the tax provisions set to kick start by 2026 risk pushing ticket prices beyond N1 million and forcing airlines to suspend operations.
In a lengthy post on X, formerly known as Twitter, Mr Oyedele noted that extensive consultations with airline operators have taken place and that engagements with stakeholders are ongoing to ensure the reforms deliver tangible relief.
He explained that at the centre of the reforms is the removal of the 10 per cent withholding tax (WHT) on aircraft leases, which has historically been the single largest tax burden on Nigerian airlines. Under the previous regime, airlines paid non-recoverable WHT on leased aircraft, significantly increasing costs and straining cash flow.
He said the new tax laws eliminate this automatic charge and replace it with a rate to be determined by regulation, opening the door for a full exemption or a substantially reduced rate.
“A $50 million aircraft lease previously attracted $5 million in WHT—an amount airlines can now avoid under the new framework,” he illustrated.
The reforms also overhaul the treatment of Value Added Tax (VAT) in the sector. While the temporary VAT suspension introduced after COVID-19 appeared beneficial, it effectively embedded VAT into airline costs because input VAT on assets, consumables and overheads could not be recovered. Under the new laws, airlines become fully VAT-neutral. VAT paid on imported or locally sourced goods and services will be fully claimable, with refunds mandated within 30 days where excess credits arise.
Mr Oyedele said the system is backed by a dedicated tax refund account and allows VAT credits to be offset against other tax liabilities, improving liquidity and reducing cost pressures.
On import duties, the government clarified that existing exemptions on commercial aircraft, engines and spare parts remain intact.
“The new tax laws do not introduce any reversal or additional burden in this area, preserving critical cost relief for airlines that depend heavily on imported equipment,” he said.
He also addressed concerns around ticket prices, noting that the committee is understands that aviation is a low-margin business and that a 7.5 per cent VAT on tickets, within a system of full input VAT recovery, has a much smaller net impact than widely assumed. Even in a worst-case scenario where VAT is not recoverable, the maximum increase would still be limited to the headline 7.5 per cent.
“For example, a N125,000 ticket would rise to no more than N134,375, while a N350,000 ticket would not exceed N376,250,” he said.
The tax titan also noted that further relief is expected from changes to corporate taxation. The new laws provide a framework to reduce corporate income tax from 30 per cent to 25 per cent, a move that would directly benefit airlines.
In addition, several profit-based levies—such as Tertiary Education Tax, NASENI, NITDA and Police levies—have been harmonised into a single Development Levy. This consolidation reduces complexity, lowers the cumulative burden and provides greater certainty for operators.
Addressing complaints about multiple levies and charges on airlines and tickets, the committee clarified that these are not products of the new tax laws. Rather, they are legacy issues that the government is working to resolve through collaboration with industry players and relevant agencies.
Mr Oyedele also maintained that the new tax laws offer a strong legal and policy foundation to resolve long-standing challenges in the aviation sector. By lowering operating costs, improving cash flow and ensuring minimal impact on passengers, the reforms are positioned as a critical part of the solution to the industry’s problems—not the cause.
He stressed that sustained engagement with stakeholders will be key to addressing remaining non-tax issues and ensuring the full benefits of the reforms are realised.
He added that claims not grounded in fact risk undermining progress, noting that the new tax laws are designed to support the long-term viability and growth of Nigeria’s aviation industry.
Travel/Tourism
Middle East Tension: Nigeria Halts Pilgrimages to Israel
By Adedapo Adesanya
The Nigeria Christian Pilgrim Commission (NCPC) has suspended pilgrimages to Israel and all other Middle East nations owing to the escalation of tensions in the Gulf region.
The Executive Secretary of NCPC, Bishop Stephen Adegbite, said during a press briefing in Lagos on Tuesday that every pilgrimage of the commission, as well as of the private pilgrimage operators, has been suspended until security in Israel and all the Middle East returns to normalcy.
Bishop Adegbite also assured that the over 500 pilgrims that made up the last batch of the 2025 pilgrimage have safely landed in Nigeria on Tuesday.
Recall that the United States and Israel have carried out waves of airstrikes across Iran, and Iran has retaliated with drone and missile attacks against US-aligned countries across the Middle East.
The campaign has killed several of Iran’s top military and political leaders, including the supreme leader, Ayatollah Ali Khamenei.
Iran retaliated the death of its supreme leader by targeting US military assets in several Gulf countries, with missiles reportedly striking sites in Bahrain, Qatar, Kuwait, and the United Arab Emirates (UAE).
The US military has acknowledged the deaths of six service members, while the Iranian Red Crescent Society said more than 500 people have been killed in the country.
This development has made the region unstable and puts Nigerians making pilgrimage to the Middle East at risk.
Travel/Tourism
Festive Travel Surge: FCCPC Flags Fare Manipulation by Airlines
By Adedapo Adesanya
The Federal Competition and Consumer Protection Commission (FCCPC) says its investigation uncovered how airlines manipulated flight fares and fixed prices arbitrarily during the last Christmas and New Year’s holidays.
The findings, contained in an interim report released on Thursday by the commission’s department of surveillance and investigations, compared domestic airline pricing from the December 2025 festive period with post-peak January 2026 fare levels.
The FCCPC, in a statement signed by its director of corporate affairs, Mr Ondaje Ijagwu, said it established cases of price fixing by local airlines, documented abuse during the festive season, and would soon begin a probe of foreign airlines, following its ongoing country-wide investigation, which was announced earlier in January.
“A review undertaken by the Federal Competition and Consumer Protection Commission (FCCPC) has uncovered patterns of price manipulation perpetrated by some local airlines during the last festive season. The forensic exercise benefitted from data collated by the commission from airlines operating local routes in the country,” the report said.
The report compares domestic airline pricing from the December 2025 festive period with post-peak January 2026 fare levels.
The FCCPC’s preliminary analysis indicated that fares recorded during the December peak period were materially higher than those observed in the post-peak period across several routes despite relative stability in critical operating variables such as fuel price, government taxes and foreign exchange.
“The differences observed in fares therefore appear to reflect airlines’ arbitrary pricing decisions, including yield management and capacity allocation, rather than any variation in regulatory fees,” the report said.
It also noted that route-level analysis showed that higher fares coincided with periods of reduced seat availability during predictable seasonal demand peaks. On some high-density routes, peak fares were clustered within relatively narrow ranges across several operators.
It noted that on certain corridors, such as Abuja-Port Harcourt, peak fares were several times higher than corresponding post-peak levels. “On selected routes, the difference in the price of a single ticket reached approximately N405,000. Median fares across the sampled routes also rose markedly during the festive window when compared with post-peak benchmarks,” it said.
The report identified the relevance of Sections 59, 72, 107, 108, 124 and 127 of the Federal Competition and Consumer Protection Act 2018, which address the prohibition of agreements in restraint of competition, the prohibition of abuse of a dominant position, the offence of price-fixing, conspiracy to commit offences under the Act, the right to fair dealings, and the prohibition of unfair, unreasonable or unjust contract terms.
The FCCPC, however, recognised that seasonal demand pressures, scheduling constraints and fleet utilisation might also affect pricing during the peak travel period. It added that these actors remain under consideration as part of the commission’s ongoing review.
Commenting on the release of the interim report, the executive vice chairman and chief executive officer of the FCCPC, Tunji Bello, said the review was part of the commission’s statutory responsibility to promote competitive markets and safeguard consumers.
“This assessment is intended to provide clarity on pricing behaviour during predictable peak travel periods. The Commission’s role is not to disrupt legitimate commercial activity, but to ensure that market outcomes remain consistent with competition and consumer protection principles under the law,” Mr Bello said.
He noted that the commission was conducting further structural and route-level analysis before reaching any conclusions.
“It is important to emphasise that this is an interim report. Our next action will be dictated by the full facts established at the end of the review exercise. Then, the Commission will decide whether any regulatory guidance, engagement or enforcement steps are necessary, strictly in accordance with the law,” he said.
Bello further announced that foreign airlines would come under investigation by the FCCPC once the ongoing review of local airlines was concluded.
He noted that the probe of the foreign airlines would be in view of widespread complaints of exploitative fares they allegedly charge Nigerians on certain routes compared to fares in neighbouring countries of equal distance.
Travel/Tourism
FAAN Traces Source of Lagos Airport Fire to Server Room
By Modupe Gbadeyanka
The Federal Airports Authority of Nigeria (FAAN) has disclosed that the fire incident at Terminal 1 of the Murtala Muhammed International Airport (MMIA), Lagos, on Monday originated from the server room on the first floor of Terminal 1.
In a statement in the wee hours of Tuesday, the agency confirmed that six casualties were recorded, involving three males and three females.
“A total of six casualties, comprising three males and three females, were recorded, all of whom are in stable condition. One affected individual has been transferred to the FAAN Headquarters Hospital for further medical evaluation and remains stable,” a part of the statement said.
FAAN noted that emergency response operations remain active, with coordinated firefighting, rescue, and safety teams continuing containment and recovery efforts.
A crane was successfully deployed to support rescue operations at the Control Tower, and all 14 persons initially trapped have been safely rescued and fully evacuated from the facility, it added.
The organisation disclosed that as an additional safety precaution, the sixth floor of the affected facility has been completely evacuated to support ongoing emergency operations and risk mitigation, adding that the fire within the departure hall is now largely under control, while responders continue close monitoring to prevent any spread to adjoining sections of the terminal.
“In line with established safety protocols, the airspace remains temporarily closed,” it stated, confirming that all emergency procedures were promptly activated and continue to collaborate with relevant emergency and support agencies to safeguard lives, infrastructure, and operational integrity.
Also, the statement revealed that the Nigerian Airspace Management Agency (NAMA) is actively working to establish a temporary Control Tower to enable the safe and timely restoration of airport operations as soon as practicable.
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