Business

Airfares to Drop If Multiple Taxes Are Reviewed, Says United Nigeria Chair

 

Executive Chairman of United Nigeria Airlines, Obiorah Okonkwo, has renewed calls on the National Assembly to intervene in what he described as crippling multiple taxation in the aviation sector, insisting that a review will significantly reduce the cost of air travel for Nigerians.

Speaking yesterday at the inauguration of commercial operations at the Ekiti Agro-Allied International Airport, Okonkwo lamented that domestic airlines grapple with no fewer than 18 different taxes on a single ticket, a situation he said makes airfare reduction difficult.

According to him, early ticket purchase remains one of the few ways passengers can currently access lower fares, pending a government-led overhaul of taxes and charges.

“My first advice is to buy your ticket early so you can get better rates,” he said. “But more importantly, we ask the National Assembly to help address the multiple taxations affecting our operations. About 70 percent of the cost of every ticket goes to various agencies. If these legislative taxes are reduced, airlines will be able to lower fares.”

His remarks came as the Senate summoned Minister of Aviation and Aerospace Development Festus Keyamo and industry stakeholders over the sharp rise in domestic airfares ahead of the festive season. Senator Abdulfatai Buhari had warned that soaring ticket prices threaten national mobility.

Keyamo, while addressing journalists on Wednesday, blamed the hike on aircraft shortages and inadequate maintenance infrastructure in the country.

In a related development, ECOWAS announced that beginning January 2026, airports across West Africa will eliminate ticket taxes as part of a regional effort to reduce airfares and boost economic integration.

The bloc said the decision was driven by concerns that high charges imposed by governments and aviation agencies remain a major contributor to costly air travel within the subregion.

Olayinka Babatunde

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