Nigerian airlines face survival threats from high taxes and borrowing costs

Leaders of Nigerian airlines are calling for urgent financial reforms to address the high mortality rate of carriers in the country. Speaking at the 30th Annual Conference of the League of Airport and Aviation Correspondents in Lagos, industry executives highlighted severe economic pressures including borrowing costs as high as 30 percent and rising aviation fuel prices.

Allen Onyema, Chairman of Air Peace, urged a review of taxes and charges imposed on airlines, arguing that the current environment is extremely hostile to sector growth. He emphasized that the industry requires greater access to capital and policy consistency to survive.

Obiora Okonkwo, Executive Chairman of United Nigeria Airlines, addressed allegations regarding unpaid Ticket Sales Charges (TSC) to the Nigeria Civil Aviation Authority. Okonkwo stated that airlines had been compliant until recent economic shifts and labor disputes. He noted that following requests for relief due to rising fuel costs, the President granted a 30 percent waiver, and airlines have been working with regulators to establish structured repayment frameworks for legacy debts.