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.
- +CPPE: Taxes consume 35% airline revenues, threaten Nigeria’s aviation sector
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.
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.
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.
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.
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.
The CPPE said these structural challenges have contributed to a fragile operating environment that requires more than temporary interventions.
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.
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.
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.
