On November 25, 2024, a senior citizen, fondly called Mr. Kay, sat in his living room with a heavy heart. Despite months of meticulous preparation, he missed his daughter’s graduation from the University of Nigeria, Nsukka.
The reason? An unmanageable spike in airfare costs.
Even after reaching out to an old student, now an executive at a Nigerian airline, Mr. Kay couldn’t afford the rebated fare.
What struck him the most was that taxes alone made up over 40% of the ticket price, leaving him frustrated and grounded.
Though fictional, Mr. Kay’s story paints a vivid picture of the harsh realities faced by Nigerian travelers.
The soaring airfares, fueled by excessive taxation, continue to put domestic air travel beyond the reach of many Nigerians.
Airlines Grapple with Tax Overload
For years, airline operators have raised concerns over multiple taxes as a primary factor driving operational costs and industry instability. In 2017, Allen Onyema, CEO of Air Peace, lamented that over 37 different charges heavily impacted profits.
Fast forward to 2025, the issue persists. Investigations reveal that airlines pay at least 16 taxes, including terminal navigation charges, enroute navigation fees, and clearance fees.
These taxes, paid to agencies like FAAN, NCAA, and NAMA, are major contributors to the challenges plaguing the industry.
Impact of Excessive Taxes
Captain Ado Sanusi, Managing Director of Aero Contractors, describes Nigeria’s aviation market as “peculiar.”
He notes that if taxes were reduced, ticket prices would drop, leading to increased passenger volumes.
Sanusi explains:
“If we can bring ticket prices closer to the purchasing power of the average Nigerian, more people will fly. However, the current tax regime makes this nearly impossible.”
He also highlighted that the NCAA, which contributes over ₦400 billion annually to the federal government, operates in a sector on “life support,” with struggling airlines and underwhelming infrastructure.
Call for Reform
Experts argue that unifying the current taxes and adopting genuine reforms could save the industry.
Sindy Foster, Principal Managing Partner at Avaero Capital Partners, emphasized that the real issue lies in the lack of decisive action.
“There’s nothing new to say. What remains outstanding is action,” she stressed.
With the average lifespan of Nigerian airlines hovering around 10–15 years, comprehensive reform is overdue to ensure the aviation sector thrives and becomes accessible to more Nigerians.
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