The Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, has called for a cautious approach to Nigeria’s planned tax reforms.
He stressed the need to recognize the peculiarities of the aviation sector.
Speaking through the Director of Air Transport Management in the Ministry, Mr. Ahmed Tijani, at a virtual meeting organized by Aviation and Allied Business on the theme “Nigeria Tax Act 2025 and the Aviation Industry”, Aviation Sector Enlightenment Initiative in partnership with the Nigeria Revenue Service, NRS, the minister noted that while tax reforms are important for national development, aviation operates under unique global standards that must be taken into account.
Mr. Keyamo explained that the industry is structured around a cost-recovery model rather than profit-making, in line with guidelines of the International Civil Aviation Organization (ICAO), a specialized UN body.
He noted that agencies such as the Nigeria Civil Aviation Authority (NCAA), Federal Airports Authority of Nigeria (FAAN) and the Nigerian Airspace Management Agency (NAMA) generate revenue largely to cover operational expenses.
Citing ICAO’s Article 15, he emphasized the global requirement for civil aviation authorities to remain independent in order to effectively regulate and safeguard air operations.
Mr. Keyamo gave the example of airline inspections, where fees charged only partially cover costs, with any small surplus considered cost recovery rather than profit.
The minister stressed that although government has affirmed that tax reform is inevitable, the aviation sector has already presented its case for special consideration.
He added that discussions with experts and stakeholders will continue to shape a way forward that balances government revenue needs with the operational realities of the aviation industry.
Business Manager, Aviation and Allied Business, Mr. Monday Ukoha, stressed the importance of industry dialogue on the newly signed Nigeria Tax Act 2025 and its implications for the aviation sector.
He said, the law which takes effect from January 2026, is expected to transform tax administration in Nigeria and inspire retail institutions that drive the nation’s economy, including aviation.
He stressed that it is crucial for stakeholders to fully grasp how the Act will affect businesses across the aviation value chain.
According to him, opinions remain divided on certain provisions of the law and their impact on the sector, making engagements like the webinar necessary.
The session, which brought together senior government officials, tax experts, administrators, industry practitioners and the media aimed to provide clarity, foster robust discussion, and strengthen stakeholder engagement.
Mr. Ukoha expressed confidence that the outcome would deepen understanding of the new tax regime and support its effective implementation.
Reporting By Nosa Aituamen