Nigerian airline operators (AON) has called on President Bola Tinubu to set up an independent committee to review taxes and duties in the aviation sector, warning that excessive levies have contributed to the collapse of many Nigerian airlines.
AON Vice President and Air Peace Chairman Alan Onyeama made the call during an interview on Arise Television on Tuesday, where he also advocated for a non-violent economic boycott of South Africa over repeated xenophobic attacks against Nigerians and other foreign nationals.
Mr Onyeama said some of the charges imposed on airlines have become unsustainable, particularly the five per cent passenger service charge charged by the Nigerian Civil Aviation Authority (NCAA).
“One of the truths we want to tell Mr. President is regarding the five percent traveler fee charged by the NCAA,” he said.
“When we talk, they will say the travelers are the ones paying, but we refuse to accept that. If I charge N100,000, NCAA takes five percent of that money. We have not established business with them,” he said.
He urged the President to set up an aviation tax and duty review committee comprising independent professionals, technocrats, aviation experts and industry operators.
He lamented, “We want the President to set up an aviation duties and taxes review committee. This is very important. These taxes and fees are responsible for the demise of many airlines in the country.”
The Nigerian Civil Aviation Authority had previously placed 11 domestic operators on a “no-pay-no-service” sanction list over outstanding obligations, but enforcement was later suspended following concerns over rising operating costs and industry sustainability.
growing concerns
The latest call comes amid growing concerns about the financial health of domestic carriers.
Premium Times had earlier reported that Nigerian airlines are increasingly relying on bank loans to maintain operations as rising aviation fuel costs put pressure on the industry. Mr Onyeama had revealed that despite the recent Jet A1 gantry price reduction by Dangote Petroleum Refinery, operators were borrowing heavily to stay in business.
Beyond aviation matters, Mr Onyeama called on Nigerians to consider an economic boycott of South Africa over repeated xenophobic attacks targeting Nigerians and other foreign nationals.
Condemning the attacks, he rejected calls for retaliation against South African businesses operating in Nigeria, and stressed that any response must remain peaceful and lawful.
“I completely agree that the stupidity must stop,” he said, accusing South African authorities of repeatedly failing to protect foreigners during outbreaks of xenophobic violence.
He added, “Every time they do this, and they have the support of their government, I don't understand how all of a sudden South Africa is short of a police force, short of an army, short of every security agency that could stop these people.”
Mr Onyeama also criticized incidents in which foreigners were allegedly profiled and harassed.
“How do you explain a situation where people will break into someone's house, bring you out, question you, 'Can I see your papers? You are a foreigner, you have to go back home?'”
According to him, many Nigerians living in South Africa have become investors and employers who contribute meaningfully to the country's economy.
“He brought money from Nigeria and opened a shop in your country to help you and help you. The best thing you could do was learn from these Nigerians and gain some entrepreneurial skills,” he said.
Despite criticism of the South African government's handling of xenophobic attacks, Mr Onyeama cautioned against targeting South African-owned companies operating in Nigeria, noting that many Nigerians have invested in such businesses.
He said, “I don't want Nigeria to close down MTN or other companies. Don't Nigerians own shares in those companies? After all, those people are also Nigerians. I don't want that.”
Also read: Nigerian airlines now dependent on bank loans as fuel costs rise – Onyema
Instead, he advocated what he described as a more effective response: blocking investment and patronage from South Africa.
He said, “I want such retaliation that Nigerians boycott South Africa. Don't invest in that country.”
According to him, withdrawing economic support would send a stronger message than violence or street protests.
“If you decide to go against me, all I can do with you is withdraw my support from you. I don't need to support you to use it to eliminate you. That's the vengeance I want. That's the most powerful. If they want to invest in our country, let them bring their money and invest. And determine how they get the money back. This is non-violent action,” he said.