By 9jaeye 
Air Peace CEO, Allen Onyema, has warned that Nigerian airlines could collapse within three months if the newly proposed tax reform laws are implemented.
Onyema revealed this in an interview with ARISE News, expressing deep concern that the government has reintroduced multiple taxes it had previously removed to support the aviation sector.
According to him, the new tax framework reintroduces customs duties on imported aircraft, aircraft parts, and engines, as well as Value Added Tax (VAT) on air tickets. He noted that the 2020 Finance Act abolished these charges to reduce operational pressure on airlines.
Rising Costs Threaten Airline Survival
The Air Peace CEO explained that Nigerian airlines already operate under extremely high costs due to foreign exchange challenges, fuel prices, maintenance expenses, and loan interest rates. Adding fresh taxes, he said, would place unbearable pressure on operators.
“If the government fully enforces these tax laws, Nigerian airlines cannot survive beyond three months,” Onyema warned, adding that most carriers already struggle to break even.
He further stated that the public often misunderstands the aviation business, as airlines do not earn high profits despite charging high ticket prices. According to him, a significant portion of ticket revenue goes into statutory charges, leaving airlines with a fraction of the total fare.
Fear of Unaffordable Airfares
Onyema cautioned that the new tax regime could force airlines to drastically increase ticket prices in order to survive. He warned that airlines could raise domestic airfares beyond the reach of average Nigerians, potentially charging more than ₦1 million per ticket if they pass the costs to passengers.
Such a development, he said, would not only hurt travelers but also weaken the entire aviation value chain, including airport services, tourism, and related industries.
Call for Government Intervention
The Air Peace CEO urged the federal government to reconsider the tax reforms affecting aviation, emphasizing that it should support airlines instead of burdening them.
He stressed that aviation plays a critical role in national development and connectivity, warning that policies capable of collapsing the industry would have far-reaching economic consequences.
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