The Chairman and CEO of United Nigeria Airlines (UNA), Obiora Okonkwo, has warned that excessive taxation is stifling the growth of Nigeria’s aviation sector and undermining its potential as a key driver of economic development.

Speaking on behalf of the Airline Operators of Nigeria (AON), Okonkwo urged the government to treat aviation as a strategic enabler of growth rather than a mere revenue source. “Nigeria’s ambition to reach a US $1 trillion economy cannot be achieved without a vibrant and competitive aviation sector,” he said.

Highlighting the high cost of operations for local carriers, Okonkwo pointed to multiple taxes, levies, and interest rates exceeding 30 percent compared with single-digit rates in other markets. He stressed that these burdens make Nigerian airlines uncompetitive both regionally and internationally.

Okonkwo called for access to affordable financing, proposing loans at single-digit interest rates to support fleet expansion and operational growth. He also urged that aviation-related revenues be reinvested into the sector to improve infrastructure, safety, and maintenance services, instead of being diverted to general government coffers.

While noting that some incentives, such as duty-free importation of aircraft and spare parts, are in place, Okonkwo criticized remaining charges like the 1 percent Free on Board (FOB) tax as counterproductive.

“The health of our aviation sector affects more than just airlines; it impacts tourism, cargo, regional connectivity, and economic diversification,” he said, adding that United Nigeria Airlines is expanding its regional network with new direct flights from Abuja and Lagos to Accra.

Okonkwo concluded that for Nigeria to compete globally and achieve sustainable economic growth, policies must support the aviation industry rather than penalize it through excessive taxation. Visit www.jocomms.com for more news.