By Ireti Asemota.
Dr. Alex Nwuba, President of the Aircraft Owners and Pilots Association of Nigeria (AOPAN), has sounded the alarm: Nigeria’s aviation sector is being crushed by an unsustainable cost structure that is ultimately paid for by passengers.
Speaking on ARISE News on Saturday, 29 November 2025, Nwuba declared:
“When you buy an airline ticket in Nigeria today, more than 70% of what you pay is taxes, charges and fees — the actual airfare is sometimes less than 30%. Everything eventually gets passed on to the passenger.”
The Real Breakdown of a Nigerian Domestic Ticket
- Fuel surcharge (17% higher than regional peers) → 40%+ of operating cost
- Airport charges, navigation fees, terminal fees
- 5% Ticket Sales Charge, 7.5% VAT, passenger service charge
- NCAA 5% cargo & ticket levy, multiple handling & security fees
- Financing cost: airlines pay pay up to 37% interest on aircraft loans (CBN MPR is ~27%, banks add huge margins)
Result? A one-hour Lagos–Abuja flight that should cost ₦50,000–60,000 in a normal market routinely sells for ₦150,000–₦250,000.
Industry Leaders Speak With One Voice
- Dr. Alex Nwuba (AOPA): “We must overhaul the entire cost structure. The problem is not the airlines — it’s the regulator and government side.”
- Prof. Obiora Okonkwo (Chairman, United Nigeria Airlines): “Excessive taxes and 30%+ interest rates are killing and suffocating Nigerian carriers. Passengers pay about $100 in charges before even buying the ticket.”
What Needs to Happen – Immediate Demands
- Slash charges & taxes to bring Nigeria in line with Ghana, Kenya, Ethiopia
- Single-digit concessionary loans for aircraft acquisition and working capital
- Stop remitting 50% of airport revenue to FAAN/Federal Government — leave the money with operators to improve facilities instead of imposing new levies
- Harmonise & reduce the dozens of overlapping fees (NCAA, FAAN, NAMA, etc.)
Nwuba praised Minister Festus Keyamo for progress in the last two years but stressed:
“We are engaging the Honourable Minister and all agencies. The conversation is now about cost, cost, cost. Until we fix the cost structure, fares will never come down.”
Bottom line from the industry: Lower the cost burden → airlines drop fares → more Nigerians fly → better connectivity → stronger economy.
The ball is now firmly in the Federal Government’s court.
#AviationNigeria #ReduceTicketCharges #NigerianAirlines #FestusKeyamo #HighAirfares
