High Taxes, Charges Make Nigeria Tough Market For Airlines – IATA

The International Air Transport Association (IATA) has identified Nigeria as one of the most expensive and challenging countries in the world for airline operations, citing high taxes, charges, and other operational costs that continue to weigh heavily on the aviation sector.

Speaking at the IATA Annual General Meeting in Brazil, the association’s Regional Vice President for Africa and the Middle East, Kamil Al-Awadhi, said that despite ongoing reforms led by Nigeria’s Minister of Aviation and Aerospace Development, Festus Keyamo, the cost environment remains a major constraint for airlines operating in the country.

According to him, excessive charges and tax burdens across the aviation value chain have made it difficult for airlines in Nigeria to remain competitive, profitable, and sustainably viable.

He noted that the situation is not unique to Nigeria alone, as several countries across the region also face similar challenges. However, Nigeria remains one of the most expensive markets from an operational standpoint, limiting the growth potential of its aviation industry.

Al-Awadhi called on member states of the Economic Community of West African States (ECOWAS) to urgently implement the proposed 25 per cent reduction in aviation taxes and charges. He explained that such a move would help reduce the cost of air travel, boost passenger demand, and improve the competitiveness of airlines within the sub-region.

Industry stakeholders have consistently argued that lowering taxes and regulatory fees is critical to making air transport more affordable, improving connectivity, and unlocking broader economic benefits tied to tourism, trade, and investment.

The latest position by IATA adds to growing calls for aviation-friendly fiscal reforms across West Africa, as governments seek to balance revenue generation with the need to support a more efficient and competitive air transport sector.