Nigeria’s aviation sector is facing mounting pressure as taxes, fees and regulatory levies consume as much as 35% of airline revenues, according to the Centre for the Promotion of Private Enterprise (CPPE), which has warned that the burden is undermining the sustainability of domestic carriers.
In a statement issued by its Chief Executive Officer, Muda Yusuf, the CPPE said the current cost structure imposed by aviation agencies has become excessive, raising operating costs for airlines in a sector already characterised by thin margins.
According to the private sector advocacy group, charges imposed by agencies such as the Nigerian Civil Aviation Authority (NCAA), the Federal Airports Authority of Nigeria (FAAN), and the Nigerian Airspace Management Agency (NAMA) have created a difficult operating environment for domestic airlines.
The CPPE noted that the cumulative impact of ticket sales charges, cargo fees, passenger service charges, landing and parking charges, inspection fees, as well as duties on aircraft and spare parts, has significantly eroded airline profitability and weakened the sector’s resilience.
What the CPPE is saying
The centre argued that the aviation industry remains too strategic to be weighed down by an unsustainable cost regime, especially as air travel has become increasingly important amid growing security concerns on major highways.
- “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.
- “Nigeria’s aviation sector is too strategic to be weighed down by such cost pressures. It is central to economic connectivity, trade facilitation, investment flows, business mobility and national integration.”
- “Reducing both the multiplicity and magnitude of these charges will significantly enhance the viability, competitiveness and resilience of domestic airlines.”
The CPPE also cautioned that persistent financial pressure on operators could affect service delivery, raise ticket prices, and potentially pose risks to safety if airlines are forced to cut costs aggressively.
Get up to speed
Nigeria’s aviation industry has struggled for years with high operating costs, recurring airline failures and limited access to long-term financing, challenges that have been compounded by rising fuel prices and foreign exchange volatility.
- Jet A1 costs have remained a major pressure point for operators, driving up overall expenses.
- Multiple charges from regulators have long been a source of concern for airlines and industry stakeholders.
- Several domestic carriers have exited the market over the years amid mounting financial pressures.
The CPPE said these structural challenges have contributed to a fragile operating environment that requires more than temporary interventions.
More Insights
While the group welcomed the Federal Government’s recent approval of a 30% relief on statutory fees owed by airlines to aviation agencies, it argued that the measure only provides short-term support and does not address deeper cost distortions.
- The relief package covers obligations such as parking charges owed to FAAN and navigational fees payable to NAMA.
- It was introduced partly to cushion the impact of the ongoing Jet A1 fuel crisis on operators.
- The CPPE says broader reforms are needed to streamline charges and improve the economics of airline operations.
According to the think tank, a more efficient cost framework would support investment, strengthen service quality and improve the long-term sustainability of domestic carriers.
What you should know
Nigeria also generated about $62 million from airline ticket taxes in 2024, according to the International Air Transport Association (IATA), while AFRAA has ranked the country among those with the highest aviation tax burdens in Africa.
From December 1, 2025, an additional $11.5 security charge under the Advance Passenger Information System (APIS) pushed total security fees per ticket to $31.50, according to regulatory updates.
