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
FG Begs Airline Operators Not to Suspend Operations April 20
By Adedapo Adesanya
The federal government has appealed to domestic airlines under the Airline Operators of Nigeria (AON) to refrain from increasing air ticket prices or embarking on the planned suspension of operations.
Recall that yesterday, the airlines said they would halt operations from April 20 following a sharp rise in the cost of aviation fuel, known as Jet A1, by 300 per cent.
In a letter dated Thursday, April 16, 2026, addressed to the President of AON, the Minister of Aviation and Aerospace Development, Mr Festus Keyamo, urged the operators to exercise restraint despite mounting operational pressures.
The appeal came amid threats by airline operators, in an earlier correspondence to the federal government, to halt flight operations from next Monday over what they described as an unsustainable increase in aviation fuel prices.
Mr Keyamo, who acknowledged the severity of the situation, especially with the price of Jet A1 surging dramatically within a short period, however, called for calm.
“I write in reference to your correspondence dated April 14, 2026, concerning the operational challenges currently confronting your member airlines, especially the sudden hike in Jet A1 fuel from N900 per litre as at February 28, 2026, to N3,300 per litre as at today, representing a three hundred per cent (300%) increase,” he said.
The minister commended airline operators for maintaining services despite the challenges, describing their efforts as critical to the nation’s economy.
He reiterated the strategic importance of the aviation sector to the administration of President Bola Tinubu, stressing its role in national development, and made a direct appeal to operators to avoid passing the burden to passengers.
“First, I urge your members to exercise restraint with respect to any proposed increase in airfares at this time. While the prevailing cost pressures on your operations are fully acknowledged, any immediate upward adjustment in ticket prices would impose significant hardship on the travelling public,” he said.
He also warned against suspending operations, noting the broader implications for the economy and public confidence.
“Secondly, I appeal for the reconsideration of any planned suspension of flight operations. Such action would have far-reaching adverse implications for the national economy, disrupt critical mobility and logistics networks, erode public confidence, and undermine the progress recorded under the ongoing reforms within the aviation sector,” he added.
Mr Keyamo assured operators that the federal government was actively working to address the crisis.
“I wish to formally assure you that the concerns raised by your members have received the full attention of the Federal Government and we shall take immediate steps to address the issues,” he said.
As part of efforts to resolve the impasse, the minister disclosed that an emergency meeting had been convened.
“Accordingly, a high-level emergency stakeholders’ meeting has been scheduled to be held on Wednesday, April 22, 2026, in Abuja, bringing together all relevant stakeholders and regulatory authorities with a view to achieving a prompt, practical, and sustainable resolution,” he said.
The development came as Nigeria’s aviation sector grapples with rising operational costs, with fuel accounting for a significant portion of airline expenses. Industry stakeholders warned that without urgent intervention, the situation could lead to widespread disruptions in domestic air travel.
Travel/Tourism
Nigerian Airlines to Suspend Operations from April 20 Over Jet Fuel
By Adedapo Adesanya
The Airline Operators of Nigeria (AON), an industry body grouping around a dozen mainly domestic carriers, have announced plans to suspend all flight operations from April 20, due to the high cost of jet fuel.
The organisation wrote to the Major Energies Marketers Association of Nigeria (MEMAN) on April 14, complaining that jet fuel prices had risen by about 270 per cent since late February, and accused the country’s fuel marketers of artificially inflating the cost.
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 have surged above $115 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.
AON called the jet fuel increase in Nigeria “astronomical and artificial,” saying it far outpaced global crude oil prices.
The airline’s body said the hike situation has now become unbearable and clearly unsustainable.
“Currently, airline revenues are insufficient to cover the cost of fuel alone, which is only one of many operational expenses incurred daily. The situation continues to deteriorate.
“The actions of fuel marketers are effectively decimating the aviation industry and putting the nation’s economy, safety, and security at risk, as airlines are gradually being forced to suspend operations.
“For the avoidance of doubt, this arbitrary increase has already severely impacted one airline, forcing it to ground all operations since March 13, 2026. This may become inevitable for other airlines if the situation does not change immediately.
“Aviation remains a sector of strategic national importance. The continued arbitrary rise in jet fuel prices is both unhealthy and detrimental to national well-being. Airlines are now facing existential threats, with serious consequences for the broader economy.
“If ticket prices are adjusted to reflect the current cost of aviation fuel, flights will operate with low passenger loads. Conversely, if airlines cease operations, financial institutions will be impacted, millions of livelihoods will be lost, and insecurity may increase.
“We therefore urge you to prevail on marketers to proportionately adjust jet fuel prices in line with international market realities, as airlines can no longer sustain purchases at the current exorbitant rates,” the letter read.
Travel/Tourism
Nigeria Secures 20-Year ICAO Strategic Roadmap
By Adedapo Adesanya
Nigeria recorded a significant aviation milestone during the opening session of the ICAO Global Implementation Support Symposium (GISS) in Marrakesh, Morocco.
The Minister of Aviation and Aerospace Development, Mr Festus Keyamo, officially received Nigeria’s Civil Aviation Master Plan (CAMP) from the International Civil Aviation Organisation (ICAO).
This 20-year roadmap (2025–2045) is designed to fundamentally restructure and modernise Nigeria’s aviation sector.
The CAMP is not just a policy document; it is a strategic framework aligned with Nigeria’s National Development Plan.
It focuses on several critical areas, such as upgrading airports to meet global standards and transforming them into Aerotropolis hubs (airport cities) to drive trade and job creation, reaffirming a commitment to a zero-fatality aviation environment through strict adherence to ICAO’s international standards and deployment of advanced systems, including the integration of unmanned aerial systems (drones) into the national airspace.
Others are addressing the skills gap by developing a future-ready workforce through specialised training and global partnerships, and by creating a more attractive environment for private-sector investment, specifically in Maintenance, Repair, and Overhaul (MRO) facilities, to reduce capital flight.
According to a spokesman for the Minister of Aviation and Aerospace Development, Mr Tunde Moshood, the presentation of the CAMP at the ICAO Global Implementation Support Symposium underscored Nigeria’s growing visibility and commitment to international best practices in aviation development.
The ICAO, as the global body responsible for setting standards and regulations for aviation safety, security, efficiency, and environmental protection, he noted, continues to play a pivotal role in supporting Nigeria’s aviation modernisation efforts.
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