President of the Aircraft Owners and Pilots Association of Nigeria, Dr Alex Nwuba, has urged the Federal Government to reform what he described as an unsustainable aviation cost structure, warning that excessive taxes, charges and financing costs are ultimately being borne by passengers.
Speaking during an interview with ARISE News on Saturday, Nwuba said airlines and consumers are being weighed down by a system in which more than 70% of the cost of a ticket comes from fees and taxes, while the fare itself makes up only a fraction of what passengers pay.
“If you look at your ticket, over 70% of the cost is related to charges and taxes. So the industry itself, not just consumers, is concerned about these charges, saying the Federal Government should review them,” he said.
Despite these concerns, Nwuba applauded Nigeria’s aviation safety record, noting that in a century of flight operations in the country, fewer than 1,500 lives have been lost, a figure he described as comparatively low and one that should inspire public confidence.
High Financing Costs and Structural Imbalance
Beyond ticket charges, Nwuba identified deeper structural issues contributing to the sector’s financial strain. He pointed to high interest rates, with airlines paying as much as 37% in financing costs for aircraft and operational funding.
“You have an industry where the airlines are screaming that there’s no money, they’re having real challenges, but the airport operators, the service providers, are putting up double-digit revenue growth,” he said.
“This issue must be addressed not just from the airline point of view but at the regulator and government levels. There are too many charges, too many costs.”
High fuel prices also play a central role. Nigerian carriers pay approximately 17% more for fuel, which accounts for over 40% of an airline’s operating costs. Airport revenues, which are partly remitted to the Federal Government, leave operators with just half of their income for essential services — a gap they fill by imposing further charges on airlines and, inevitably, passengers.
Calls for Regulatory and Policy Reform
Nwuba argued that reducing the cost burden would enhance connectivity and affordability, stressing that Nigeria must “re-examine the entire cost structure” if it hopes to build a more competitive aviation sector.
He acknowledged ongoing engagements with the Minister of Aviation, Festus Keyamo, and aviation agencies, noting, “A lot of people have said that in the last two years or thereabouts, the minister has not done badly. But we are engaging him on cost-related issues.”
He also highlighted the need to align Nigeria’s aviation charges with those of other African countries, warning that domestic passengers and airlines are facing disproportionately higher fees in a supposedly open market.
“We operate a free market system… all costs—airline, airport, service provider—are borne by the passenger,” he said. “The revenues that come to the airports and agencies should be left with them. We must relook at our charging structure so we can lower fares.”
Airline Operators Raise Similar Alarms
Echoing Nwuba’s position, Obiora Okonkwo, Chairman of United Nigeria Airlines, said punitive taxes, rising charges and financing costs above 30% are “killing and suffocating” Nigerian airlines.
He noted that passengers sometimes pay about $100 in taxes before even purchasing the ticket, making Nigerian flights uncompetitive within the region.
Okonkwo urged the government to slash taxes, reduce operational charges and provide airlines with single-digit interest loans to keep the industry afloat.
A Path Toward Affordable Flying
Both industry leaders stressed that without urgent reforms, high ticket prices will persist, connectivity will weaken and airlines will continue to struggle under the weight of an inefficient and costly ecosystem.
They argue that restructuring the aviation finance and fees framework is key to making air travel affordable — and ensuring the sustainability of Nigeria’s flight operations in the years ahead.