Allen Onyema, chief executive officer of Air Peace, has warned that newly introduced tax laws have reintroduced charges that were removed under the 2020 tax reforms, a move he says could severely harm Nigeria’s aviation industry.
Speaking during a television interview on Sunday, Onyema said the taxes include customs duties on imported aircraft, aircraft engines and spare parts, as well as value-added tax (VAT) on airline tickets. He noted that the new levies would further increase operating costs for already struggling airlines.
According to him, airlines are now required to pay 7.5 percent VAT on aircraft imports, explaining that purchasing an aircraft valued at $80 million would attract a VAT bill of $6 million.
“Do the mathematics,” Onyema said. “These aircraft are bought with bank loans at interest rates of 30 to 35 percent. On top of that, you pay 7.5 percent VAT on spare parts and engines.”
He warned that the airline industry would be unable to survive the additional financial burden, adding that full implementation of the new tax regime could force Nigerian airlines out of business within three months.
Onyema also announced that Nigerian airlines have resolved to stop tolerating unruly passenger behaviour beginning in 2026. He lamented what he described as a culture of indiscipline among some passengers, noting that actions unacceptable on foreign airlines are often attempted on Nigerian carriers.
Citing a recent international flight, Onyema alleged that some passengers who paid for economy class forcefully occupied business class seats, consumed multiple bottles of alcohol purchased at duty-free shops, and threatened crew members and fellow passengers.
He added that despite the airline handing the matter over to authorities, there were attempts by influential individuals to interfere, insisting that such conduct would no longer be condoned and that offenders would be blacklisted.
Onyema also addressed a separate incident involving a weather-related diversion of an Air Peace flight from Gatwick to Manchester, noting that some passengers wrongly accused the airline of misconduct, despite British authorities later confirming that over 200 flights were diverted on the same day.
He said Nigerian airlines have begun enforcing stricter measures against disruptive passengers from January 1, stressing that the industry can no longer tolerate behaviour he believes has been unjustly enabled by the system.
Meanwhile, concerns over rising airfares have drawn legislative attention. On December 10, the Senate summoned the Minister of Aviation, Festus Keyamo, and key industry stakeholders for an emergency meeting, while the House of Representatives on December 11 urged the federal government to slash aviation taxes by 50 percent to help curb soaring ticket prices.