Allen Onyema, Chief Executive Officer of Air Peace, has sounded a stark warning that Nigeria’s airline industry could face collapse within three months if the recently passed tax reform laws are fully implemented. Onyema said the new regulations have reintroduced charges that were removed under the 2020 tax framework, raising serious concerns about the financial viability of domestic carriers.
In an interview with Arise News on Sunday, Onyema detailed that the taxes would include customs duties on imported aircraft, engines, and aircraft parts, alongside Value Added Tax (VAT) on passenger tickets. According to him, these levies would impose significant additional costs on airlines already operating under tight margins, threatening the sustainability of operations and potentially leading to widespread service disruptions.
Onyema emphasized that the reintroduction of these taxes undermines previous government efforts to support the aviation sector, which has been struggling to recover from the economic impact of the COVID-19 pandemic and rising operational costs. He warned that if these fiscal measures are applied without adjustments or exemptions for the industry, many airlines could be forced to reduce flights, increase ticket prices, or, in the worst-case scenario, shut down entirely.
The Air Peace CEO called for urgent engagement between the government and industry stakeholders to review the tax provisions and explore alternatives that would protect both the sector and passengers. He stressed that sustaining a viable airline industry is critical not only for domestic travel but also for international connectivity, economic growth, and job preservation in Nigeria.
Onyema’s comments have reignited discussions about the balance between revenue generation and the economic realities of the aviation industry, highlighting the need for tax policies that consider the unique challenges faced by airlines while supporting national development objectives.
