Nigerian airline operators have sounded the alarm over what they describe as a crippling tax regime imposed by aviation agencies.
These operators claim that the multiple levies, disguised under various names, are suffocating their businesses.
From navigation fees to parking charges, the operators say they pay an overwhelming 35% to 40% of ticket costs as taxes.
“This is unsustainable,” lamented a member of the Airline Operators of Nigeria (AON).
At the heart of the complaints is the belief that these taxes not only hurt airline profits but also mislead passengers.
Travellers, they say, often think the full cost of a ticket goes to the airline, unaware that a significant portion is taken by government agencies.
Breakdown of Charges
AON provided detailed accounts of the taxes airlines are required to pay.
Federal Airports Authority of Nigeria (FAAN) alone collects 20 different charges.
The Nigeria Civil Aviation Authority (NCAA) takes six levies, while the Nigerian Airspace Management Agency (NAMA) imposes three.
Bi-Courtney Aviation Services Limited (BASL), which manages some terminals, collects four charges.
These fees include terminal navigation, parking charges, and enroute navigation fees.
International flights also attract over-flight charges, with NAMA collecting $195 for such operations.
Domestic flights are not spared either, with indigenous airlines remitting N6,000 as terminal charges.
Additionally, NCAA collects a 5% ticket sales tax, which airlines describe as particularly burdensome.
“One Tax, One Payment,” Says Aero Contractors CEO
Captain Ado Sanusi, the Managing Director of Aero Contractors, has been vocal about the need for reform.
“We cannot continue like this,” Sanusi declared.
He suggested a streamlined system where airlines pay a single consolidated tax.
“Let’s have one figure for all charges,” he said.
Sanusi explained that this would reduce confusion and make compliance easier for airlines.
Currently, airlines pay separate fees for ticket sales, aircraft inspections, and navigation services.
“We are double-taxed. It’s choking the industry,” he added.
Economic Challenges Worsen Aviation Woes
Sanusi also linked the plight of airlines to Nigeria’s struggling economy.
“You can’t be more efficient than the system you operate in,” he noted.
He explained that the challenges facing airlines are a reflection of the broader economic difficulties in the country.
“If the economy is in recession, how can aviation thrive?” he asked.
Sanusi warned that without urgent reforms, the aviation sector would remain in a precarious state.
A Call for Change
Domestic airlines have repeatedly urged the federal government to address the issue of excessive taxation.
Over the years, their pleas have largely fallen on deaf ears.
Despite several presentations to aviation agencies, little has changed.
Sanusi is hopeful, however, that the government will finally take action.
“The industry cannot survive under this burden,” he said.
Aviation Taxes vs. Foreign Airlines
AON pointed out that foreign airlines operating in Nigeria are spared some of these levies.
For instance, international carriers do not pay enroute or extension charges.
Yet local airlines are forced to bear these costs, creating an uneven playing field.
“Why are we treated differently in our own country?” asked one operator.
The operators argue that this disparity undermines their competitiveness.
Future of the Industry
Experts warn that without a review of these taxes, more Nigerian airlines could face closure.
Already, several airlines have folded under the weight of high operational costs.
Sanusi summed up the situation succinctly: “We are telling ourselves lies if we think the sector is healthy.”
He called for a holistic approach to fixing the economy and ensuring aviation can thrive.
Until then, the groans of airline operators may continue to echo in vain.
