Nigeria’s domestic airlines are facing severe financial strain as multiple taxes, regulatory fees, and levies imposed by aviation agencies now account for as much as 35% of their total revenues, according to the Centre for the Promotion of Private Enterprise (CPPE).
In a strongly worded statement, CPPE Chief Executive Officer Muda Yusuf described the current cost structure as excessive and unsustainable for an industry already operating on razor-thin profit margins. He warned that the heavy burden is threatening the long-term viability and competitiveness of local carriers.
The advocacy group highlighted charges levied by key agencies, including the Nigerian Civil Aviation Authority (NCAA), the Federal Airports Authority of Nigeria (FAAN), and the Nigerian Airspace Management Agency (NAMA). These include ticket sales charges, passenger service charges, landing and parking fees, cargo fees, inspection levies, and import duties on aircraft and spare parts.
“Industry estimates suggest that these charges collectively account for as much as 35% of airline revenues, a level that is clearly incompatible with the thin margins typical of the aviation business,” Yusuf said.
He emphasized the strategic importance of the aviation sector, noting its critical role in economic connectivity, trade facilitation, investment attraction, business mobility, and national integration especially at a time when security challenges on major highways have increased reliance on air travel.
The CPPE cautioned that continued high operating costs could lead to higher ticket prices for passengers, reduced service quality, and potential safety risks if airlines are compelled to cut corners to survive. The group also pointed to the sector’s history of airline failures, limited access to long-term financing, volatile foreign exchange rates, and persistently high Jet A1 fuel prices as compounding factors that have created a fragile operating environment.
While welcoming the Federal Government’s recent approval of a 30% relief on outstanding statutory fees owed to aviation agencies covering items such as parking charges to FAAN and navigational fees to NAMA — the CPPE described the measure as only a short-term palliative. The relief was introduced partly to ease the impact of the ongoing Jet A1 fuel crisis, but the group stressed that deeper structural reforms are required.
Yusuf called for a comprehensive review to reduce both the number and magnitude of charges, arguing that a more efficient and competitive cost framework would encourage investment, improve service standards, and strengthen the resilience of Nigeria’s domestic aviation industry.
Nigeria remains one of the countries with the highest aviation tax burdens in Africa, according to the African Airlines Association (AFRAA). In 2024, the country generated approximately $62 million from airline ticket taxes alone, according to the International Air Transport Association (IATA). From December 2025, an additional $11.50 security charge under the Advance Passenger Information System (APIS) raised the total security-related fees per international ticket to $31.50.
Industry stakeholders have long argued that the multiplicity of levies and high charges discourage growth and contribute to the frequent collapse of local carriers. The CPPE urged policymakers to treat aviation as a priority sector and implement reforms that would make domestic operations more sustainable and attractive to investors.
