Nigerian airline operators have called on the Federal Government to harmonize the multiple taxes and charges affecting the nation’s aviation sector, warning that the current system is stifling growth and discouraging investment.
Speaking at the Civil Aviation Cost Recovery Optimization Stakeholders’ Retreat in Lagos, the operators questioned the rationale for imposing Value Added Tax (VAT) and other levies on airlines already paying the 5% ticket sales charge to the Nigeria Civil Aviation Authority (NCAA).
They noted that overlapping taxes from agencies such as the Federal Inland Revenue Service (FIRS) and the NCAA have left airlines struggling to remain financially viable.
The operators also urged the government to consider temporary relief measures, including tax waivers and support funds similar to those provided during the COVID-19 era, to help stabilize the industry.
Concerns were raised over customs procedures for leased aircraft, described as cumbersome and costly, with importation bonds and multi-billion-naira bank guarantees creating additional financial strain.
Representatives of the FIRS and the Nigeria Customs Service, Mr. Diamond Tietie and Mr. Joseph Atile, advised airlines to present a unified position in engaging with government agencies to achieve lasting tax reforms.
NCAA’s Director of Finance and Accounts, Mr. Olufemi Odukoya, urged operators to accompany their complaints with practical policy solutions that could help reduce operating costs.
Despite their grievances, the operators commended the NCAA for promoting collaboration and treating airlines as business partners rather than merely regulated entities.
The retreat, themed “Strengthening Collaboration for Revenue Optimization and Operational Efficiency,” brought together key stakeholders across Nigeria’s aviation industry.
Reporting by Nosa Aituamen