The Chairman and Chief Executive Officer of Air Peace, Allen Onyema, has warned that Nigeria’s domestic aviation sector could face a severe crisis if newly introduced tax laws are implemented without review.
Speaking during an interview on Arise Television on Sunday, Onyema said the proposed tax reforms could drive domestic airfares as high as ₦1.7 million, placing air travel beyond the reach of most Nigerians and threatening the survival of local airlines.
He attributed the steady rise in ticket prices to what he described as excessive taxes, levies and statutory charges imposed on airlines, rejecting claims that operators are profiteering from high fares.
“People talk as if airlines are making a killing. That is not true,” Onyema said, explaining that a significant portion of ticket revenue is deducted through government charges before airlines can cover operational costs.
According to him, the burden of the new tax laws would ultimately be transferred to passengers, warning that domestic carriers could collapse within months if the reforms take effect as planned.
“With 7.5 per cent on ticket fares, domestic tickets could hit ₦1.7 million. If these tax reforms are implemented without review, Nigerian airlines may not survive beyond three months,” he added.
The warning comes amid mounting public frustration over already high domestic airfares, particularly during the festive period. Recent fare hikes saw single-route tickets rise to between ₦250,000 and ₦450,000, especially on routes to the South-East and South-South regions.
Despite calls from industry stakeholders and lawmakers for a suspension or review, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee has maintained that the new tax laws are scheduled to take effect from January 1, 2026.