Nigeria Air Peace CEO Warns New Tax Law Could Push Airfares to ₦1 Million

The Digest:

Air Peace Chairman Allen Onyema has warned that Nigeria’s new tax provisions could force domestic airfares beyond ₦1 million and risk collapsing local airlines within months. In an interview with ARISE NEWS, Onyema criticized what he called “multiple and overlapping” charges, noting that airlines retain only a fraction of each ticket price after mandatory deductions.

Key Points:

• Onyema stated airlines keep only about ₦81,000 from a ₦350,000 ticket after taxes
• A mandatory 5% ticket charge goes to the Nigerian Civil Aviation Authority alone
• The new law reintroduces 7.5% VAT on aircraft, spare parts, and ticket fares
• He warned that some airlines could fail within one to three months of implementation
• High bank lending rates of 30–35% compound the financial strain on operators
• Onyema contrasted the new regime with the more favorable 2020 tax law
• He called for a return to VAT exemptions to preserve the aviation sector

When the cost of lifting off becomes a burden too heavy to bear, the promise of connection becomes a question of who can still afford to fly.
Rooted in the Storm

Sources: ARISE NEWS

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