Allen Onyema, Chairman and CEO of Air Peace, has warned that domestic economy airfares in Nigeria could climb above ₦1 million next year if newly introduced tax laws take effect in January 2026.
Speaking on Arise News on Sunday, Onyema said the revised tax regime reinstates Value Added Tax (VAT) and customs duties on aircraft, parts and tickets reversing exemptions that previously helped reduce airlines’ costs.
He explained that Nigerian carriers already retain only a small portion of ticket revenue after multiple levies, and that the added tax burden will likely be passed on to passengers as higher fares.
Onyema cautioned that without urgent policy review, airlines could struggle to operate and potentially go out of business, with broad implications for passengers and the aviation sector. Visit www.jocomms.com for more news.