Nigerian airlines are struggling under the weight of excessive taxes and levies, according to Professor Obiora Okonkwo, founder of United Nigeria Airlines. Speaking after the launch of the airline’s new Accra route, Okonkwo warned that current aviation charges are suffocating local carriers and threatening their competitiveness.
“Passengers are already paying $100 to leave Nigeria for Ghana and $60 for the return,” he said. “With all the taxes and levies, ticket costs leave no real profit for operators. This is killing our industry.”
Okonkwo criticized multiple charges imposed by the Federal Airports Authority of Nigeria (FAAN) and the Nigerian Civil Aviation Authority (NCAA), including passenger service fees, security levies, and a five percent ticket sales charge. He also called for the removal of the 1% ECOWAS tax on aircraft, arguing that Nigeria is overtaxing its airlines compared to other countries.
He highlighted the impact of high-interest loans, saying that while foreign carriers access single-digit financing, Nigerian operators contend with rates exceeding 30% after currency conversion. “The combination of heavy taxation and costly loans makes it almost impossible for Nigerian airlines to compete with foreign carriers,” Okonkwo said.
The United Nigeria Airlines founder urged the government to treat aviation as an essential industry and align taxation policies with international standards. “You cannot tax your citizens to greatness,” he said. “Taxes should enable growth, not suffocate it.”
Okonkwo also criticized the upcoming $11.5 international security levy, warning that piling more charges on operators only worsens the financial strain. He called for revenues to be reinvested into aviation services rather than diverted elsewhere.
Despite these challenges, United Nigeria Airlines is expanding its fleet and flight frequencies, demonstrating confidence in the market. But Okonkwo emphasized that sustainable operations require government support and fair taxation policies.