Multiple taxation continues to trouble airlines despite aviation sector gains
Despite improvements recorded in Nigeria’s aviation sector under the Minister of Aviation and Aerospace Development, Mr Festus Keyamo, concerns over multiple taxation have continued to pose serious challenges for domestic airline operators.
Throughout 2025, local airlines repeatedly urged the Federal Government to reduce the number of taxes imposed on the sector, warning that the burden was choking operations and could force some operators out of business. These concerns were raised even before the new tax laws took effect on January 1, 2026.
Although the Presidential Fiscal Policy and Tax Reforms Committee, led by its chairman, Mr Taiwo Oyedele, has insisted that the new tax regime will support rather than harm domestic airlines, industry operators say taxation remains a major obstacle to sustainability.
Insights into the issue were provided by the Chief Financial Officer of Aero Contractors, Charles Grant, during a recent Civil Aviation Cost Recovery and Revenue Optimisation Stakeholders’ Retreat held in Lagos. In a detailed presentation, Grant argued that aviation should not be treated merely as a revenue source.
“Aviation is not just another revenue line. It’s a complex, capital-intensive sector that connects people, moves goods, drives tourism, enables investment, and ultimately grows the economy,” he said.
Grant warned that Nigeria’s current approach of increasing taxes without corresponding sectoral support was producing negative outcomes. According to him, airlines are struggling, routes are shrinking, passenger volumes are declining, and the tax base itself is becoming smaller.
“My appeal is not about avoiding tax. It’s about growing the pie first, so we all get more in the long run,” he added, noting that effective taxation must be built on enabling growth within the sector.
The continued debate highlights lingering concerns within the aviation industry over the balance between revenue generation and long-term sector sustainability, even as broader reforms are introduced.
