Air Peace Boss Says Nigerian Airlines Near Collapse over Taxes

Allen Onyema, Chairman and Chief Executive of Air Peace Limited, issued a stark warning on Tuesday, June 24, 2026, telling President Bola Tinubu that Nigeria’s indigenous airlines are heading for collapse unless the government urgently reviews the taxes and charges crushing domestic carriers.

Speaking during an interview on Arise Television, Onyema focused his sharpest criticism on the 5% Ticket Sales Charge (TSC) collected by the Nigerian Civil Aviation Authority (NCAA) — a levy he said airlines, not passengers, actually absorb.

“We have to tell the president that the 5% passenger TSC they charge the airlines are not paid by passengers. If I charge ₦100,000, NCAA will take 5%. Aviation itself doesn’t give you 5% gain, but they tell you it’s the passengers that pay it. No,” he said.

He called specifically for a formal presidential intervention.

“We want Mr. President to set up an Aviation Taxes and Charges Review Committee. Let the government select technocrats, people from aviation, and some of us from the airline industry — to look into these charges that airlines have been crying over, that are responsible for the demise of airlines in this country,” Onyema said.

Nigeria’s Airlines Are Dying — the Numbers Confirm It

The appeal comes against a backdrop of sustained decline. Data from the Federal Airports Authority of Nigeria (FAAN) shows domestic passenger traffic fell from 14.52 million in 2022 to 12.54 million in 2024 — a drop of roughly 13.6 per cent — as ticket prices surged and economic conditions tightened.

More than 130 airlines are estimated to have ceased operations in Nigeria since independence, making the country home to the world’s highest airline mortality rate by most industry accounts.

Onyema did not spare the comparison.

“The toughest place to open an airline today is either Afghanistan or Nigeria. Afghanistan because it is a disaster and Nigeria because it is unbelievably expensive to operate,” he said, quoting IATA Regional Vice President for Africa and the Middle East, Kamil Al Awadhi.

He also pointed to the stark contrast between Nigeria’s COVID-19 response to airlines and that of the United States.

“During COVID, America doled out billions of dollars to their airlines. The entire 34 airlines in Nigeria were given ₦4 billion. Some airlines got ₦8 million only. Tell me what you’re going to do with that,” he said.

Airlines Are Strategic Assets, Not Revenue Tools

Onyema’s core argument was that successive governments have misunderstood what airlines are for. He argued they are not direct revenue sources but economic catalysts — driving tourism, trade, and national integration.

“Aviation is a catalyst of national strategic importance. There’s no UAE without Etihad and Emirates. They might not be making money for themselves, but they’re engineering the ecosystem to make money for the country,” he said.

He was also candid about the wider consequences of airline failures.

“If any airline goes down, banks will take a hit. A lot of people will be thrown into unemployment — and you don’t know who will be the next armed robber, the next kidnapper. You’ll be promoting insecurity the other way,” he warned.

Onyema was grateful to the Tinubu administration for progress on the Cape Town Convention and plans to establish a domestic aircraft leasing company under Aviation Minister Festus Keyamo. Nevertheless, he insisted those steps would have limited impact without tax relief.

“We need to sit down with Mr. President and tell him face to face. We don’t want anybody to go between us and him,” he said.

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