Mr Obiora Okonkwo, Chairman and Chief Executive Officer of United Nigeria Airlines, has highlighted the severe impact of multiple taxation on the country’s aviation sector, stating that domestic carriers face around 18 different taxes and charges on a single ticket, with up to 70% of fares going to government agencies and regulators.
“We pray the National Assembly will help us address multiple taxation plaguing the airline industry; we are charged about 18 taxes on one single ticket,” Okonkwo said recently at the inauguration of commercial operations at Ekiti Agro-Allied International Airport.
He added that for many tickets, “about 70% goes to other government agencies,” emphasising that reducing these burdens could significantly lower airfares for passengers.
Okonkwo, who also serves as spokesperson for the Airline Operators of Nigeria (AON), has repeatedly described the situation as “taxing airlines to death.”
In various interviews this year, including on Channels Television and Arise TV, he noted that Nigerian carriers pay “too many unexplainable taxes that don’t exist anywhere in the world,” alongside high operational costs driven by loan interest rates of 30-35%—compared to 2-7% in other countries.
Despite these challenges, Okonkwo insists that domestic air travel in Nigeria remains among the cheapest globally when adjusted for operational realities.
“Internal air travel within Nigeria is one of the cheapest,” he told Channels Television recently, attributing recent fare surges primarily to seasonal demand and dollar-denominated costs like fuel, maintenance, and insurance, rather than profiteering by airlines.
Industry reports support his claims of heavy taxation.
Nigeria ranks among Africa’s highest for aviation taxes, with international departures averaging around $180 in charges—nearly three times the continental average of $68, according to studies by the African Airlines Association.
Domestic operators face additional levies from agencies like the Federal Airports Authority of Nigeria (FAAN), Nigerian Civil Aviation Authority (NCAA), and others, including passenger service charges, security levies, and a 5% ticket sales charge.
However, the NCAA has pushed back on some specifics, stating that no domestic operator pays exactly 18 taxes directly to the regulator, calling certain claims “inaccurate.”
Stakeholders argue the cumulative effect across multiple agencies creates an unsustainable environment, leading to capital flight as passengers opt for foreign carriers on regional routes.
