Nigerian airline chief calls for tax review to save sector

A leading Nigerian airline executive has issued a stark warning that the country's domestic aviation industry is in a state of crisis, calling for urgent government intervention to prevent further collapse. Allen Onyema, CEO of Air Peace and Vice President of the Airline Operators of Nigeria, declared that Nigerian airlines are "dead on arrival" due to crippling operational costs, excessive taxes, and high-interest loans.

Speaking in a televised interview on Tuesday, June 23, Onyema detailed the severe financial pressures facing carriers. He stated that while airlines worldwide are grappling with a crisis linked to geopolitical tensions, Nigerian operators face uniquely steep challenges. He cited aviation fuel price increases exceeding 250 percent, with costs rising from approximately 900 naira per litre to as high as 3,300 naira. This forces airlines to spend up to 13 million naira on fuel for a flight that previously cost about 3 million naira, making operations economically unsustainable.

Onyema emphasized that airlines are now heavily reliant on bank borrowing simply to purchase fuel, despite a recent reduction in the gantry price from the Dangote Petroleum Refinery. He...