Nigerian airline operators have warned that the new Tax Reform Act 2025 could cripple the aviation sector within days if implemented without exemptions.

The law reintroduces customs duties and a 7.5% VAT on imported aircraft, spare parts, and even passenger tickets measures critics say conflict with ICAO standards.

Already, carriers lose 35–40% of ticket revenue to multiple levies from government agencies and private operators, making Nigeria one of Africa’s costliest air travel markets. Passengers now pay around $180 in ticket taxes, far above the continental average of $68.

The Airline Operators of Nigeria is urging the Federal Government to scrap the new charges, harmonize existing fees, and address forex challenges, warning that without urgent action, airlines could shut down, jobs could be lost, and domestic air connectivity severely reduced.