Chairman and Chief Executive Officer of Air Peace, Allen Onyema, has warned that Nigeria’s domestic aviation sector could slide into a major crisis if newly introduced tax laws take effect without a proper review.
Onyema raised the alarm during an interview on Arise Television on Sunday, blaming excessive taxes, levies, and charges imposed on airlines for the persistent rise in domestic airfares.
He cautioned that if the new tax regime is implemented as proposed, domestic airfares could soar to as high as ₦1.7 million, forcing local airlines out of business within months and triggering wider economic consequences for passengers, banks, and related industries.
Dismissing claims that airlines are profiteering, Onyema said a significant portion of ticket revenue is lost to statutory deductions.
“People talk as if airlines are making a killing. It’s not true,” he said.
According to him, the burden of the new tax reforms would ultimately be passed on to passengers, leading to even higher ticket prices. He warned that Nigerian domestic airlines may not survive beyond three months under the new tax structure.
“With 7.5 per cent on ticket fares, ticket fares will hit ₦1.7 million soon. If we implement that tax reform, Nigerian airlines will go down in three months. At the end of the day, economy class tickets will go for about ₦1.7 million if it happens,” Onyema stated.
His comments come amid growing public frustration over already high domestic airfares. During the recent Yuletide season, single-route fares reportedly rose to between ₦250,000 and ₦450,000, particularly on routes to the South-East and South-South, sparking outrage among passengers and lawmakers alike.
Meanwhile, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee has maintained that the new tax laws are scheduled to take effect from January 1, 2026, despite increasing calls for their suspension or review.
Onyema urged the government to reconsider the proposed tax measures to prevent the collapse of the domestic aviation industry and further hardship for Nigerians.