By Bon Peters

The South-South Regional Manager of the Federal Airport Authority (FAAN), Mrs Lynda Ezike, has said Aerodrome Certification by the Nigeria Civil Aviation Authority (NCAA) could serve as a catalyst for investors’ confidence for Port Harcourt International Airport in Omagwa, Rivers State.

Mrs Ezike made the assertion in Port Harcourt recently during a chat with newsmen, noting that the certification has also strategically positioned the facility for global recognition, thereby promoting the ease of doing business at the Airport.

The FAAN chief, who also manages the airport, reaffirmed the determination and commitment to leverage on the certification awarded the facility to promote better services.

“We will continue to uphold all operational policies in the aviation sector,” she said, adding that the certification was a confirmation that the facility fully met all global benchmarks.

According to her, the airport topped in infrastructure, operational procedures and safety management, revealing that the NCAA, as part of its drive to institutionalise global standards across Nigeria’s airport networks, recently issued Aerodrome Certificates to Kano and Port Harcourt Airports.

She commended the exercise, emphasizing its importance to boosting investors’ confidence for airline operators, passengers and airport users.

“The certification officially presented on December 19, 2025, followed a strict and rigorously structured regulatory processes jointly carried out by the NCAA and FAAN.

“This collaborative scrutiny underscores the importance of interagency collaboration towards safety and operational excellence across Nigeria’s sectors,” she said.

By Adedapo Adesanya

‎‎The Nigerian Civil Aviation Authority (NCAA) has disputed claims by the chief executive of Air Peace, Mr Allen Onyema, that excessive taxes are responsible for high domestic airfares.

During a recent interview with Arise TV, Mr Onyema stated that a one-hour flight costs over $400 abroad, but in Nigeria, tickets are still sold for N125,000, which he said is equivalent to less than $60. He said this is why the mortality rate of airlines in Nigeria is very high, as over 80 airlines have became non-operational.

‎‎He then said that airlines keep just 23 per cent of a N350,000 ticket after taxes and charges, but the NCAA has pushed back, describing the tax complaints as untrue, blaming the increase in fares on the festive season demand.

On his X handle, the NCAA’s spokesperson, Mr Michael Achimugu, stated that after summoning all domestic airlines, they all admitted to not paying the volume of taxes being publicly complained about.

Mr ‎‎Achimugu blamed the fare hikes witnessed in December on the high demand of the festive season, noting there was no concurrent increase in official taxes or jet fuel costs at the time. He also stated that taxes account for only 5-6 per cent.

“Lies have been told over this matter, over and over. I have addressed this on national TV, major news platforms, and via my X handle. While the NCAA does not regulate airfares, I have invited all of the domestic airlines, bar none, and asked them about these taxes they keep talking about on TV. They all admitted to not paying the volume of taxes being bandied around.

“I don’t understand this 350k and 81k narrative, but I know that, for the kind of support that President Bola Tinubu, the aviation minister, Festus Keyamo, and the DGCA, Capt. Chris Najomo have given to domestic carriers, I see no reason why the government keeps getting thrown under the bus via statements like this.

‎”It is even ironic that, in the same statement, it is alleged that Nigerians pay the lowest domestic airfares in the world while also justifying the astronomical airfares that came to play in December, even though there was no hike in taxes or jet fuel.

‎”If my inviting the airlines themselves, speaking with travel agents, and the relevant departments within the Authority did not agree with the narrative being pushed, I don’t see how this is sustainable. If high taxes were the reason why airfares were 150k-200k, why did tickets well for as high as 500k for a 45-minute trip when the said taxes did not increase?

“‎And this is happening at a time when Festus Keyamo has ensured that domestic carriers now have access to dry lease aircraft, something they have not had in decades. Not a single airline staff I spoke with two weeks ago agreed with the excuses I am reading on social and traditional media,” he said.

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.