The Chief Executive Officer of Aero Contractors, Captain Ado Sanusi, has blamed multiple taxation as the biggest challenge facing airlines in Nigeria, describing it as a major factor behind the collapse of many carriers in the country.
Speaking over the weekend, Sanusi lamented that airlines are burdened with a long list of taxes that go beyond standard aviation levies. He stressed that the financial pressure caused by the cumulative impact of various taxes is contributing significantly to the death of Nigerian airlines.
“The reason is that airlines are heavily taxed in this country. There’s multiple taxation because you’re not only talking about taxes; you’re talking about customs taxes, CAC taxes, stamp duty taxes – all those things contribute to this,” Sanusi stated.
The Aero Contractors boss backed a recent statement by the International Air Transport Association (IATA), which ranked African airlines among the most heavily taxed globally. He noted that Nigeria likely ranks among the top contributors to that statistic.
“I believe IATA said that because they took an average, and I’m very convinced that Nigeria contributed to the highest average of that average that they took,” he added.
IATA’s Vice President for Africa and the Middle East, Kamil Al Awadhi, had earlier raised concerns at the association’s Annual General Meeting in New Delhi, India. He noted that the cost of doing business in Africa’s aviation industry is among the highest in the world.
In some African countries, he said, passengers pay more in taxes and fees than the base cost of their tickets. Al Awadhi cited examples where a $100 airfare could attract charges of $60 to $70, making air travel unaffordable for many and reducing passenger traffic.
He also highlighted several operational cost disadvantages faced by African carriers. These include:
- Taxes, fees, and charges that are 12–15% higher than in other parts of the world.
- Air navigation service charges that are 10% above the global average.
- Maintenance, insurance, and cost of capital that are 6–10% more expensive.
- Jet fuel costs that can be up to five times more expensive than in Europe and the Middle East.
“In terms of jet fuel within the continent, airlines are already paying such a high premium. The cost of the product is two times, sometimes even five times, more than what airlines in Europe and the Middle East are paying,” IATA noted.
Beyond the issue of taxes and fuel, the IATA official also pointed to other structural problems hampering aviation growth in Africa. These include restrictive bilateral agreements, limited market access, protectionist policies, and a lack of competition.
“On protectionist policies, restrictive bilateral agreements limit competition, reducing route availability and keeping fares high. Most African airlines are small operators with limited fleet sizes and route networks, lacking economies of scale to lower costs and become more competitive,” Al Awadhi stated.
Captain Sanusi’s comments come at a time when Nigeria’s aviation industry is facing a wave of concerns, from rising operating costs to policy uncertainty and weakened consumer demand. Several domestic airlines have struggled to stay afloat in recent years, while others have suspended operations entirely.
Industry analysts say urgent reforms are needed to ease the tax burden on airlines, improve regulatory efficiency, and create a more competitive aviation environment. Without such changes, experts warn that Nigeria risks further decline in domestic and regional air connectivity.
