Nigerians may face soaring domestic airfares and potential airline collapses if new tax laws take effect next year, Air Peace CEO Allen Onyema has warned. He said excessive levies threaten the survival of local carriers and could ripple across the economy.
Onyema spoke on Sunday during an interview with Arise Television, stressing that the burden of statutory deductions already consumes most ticket revenue. He dismissed claims that airlines are profiteering. “People talk as if airlines are making a killing. It’s not true,” he said.
The aviation executive warned that the planned 7.5 per cent tax on ticket fares could push economy class tickets to as high as N1.7 million. He cautioned that, under the new tax regime, Nigerian domestic airlines may be forced out of business within three months.
“With 7.5 per cent on ticket fares, ticket fares will hit N1.7 million soon. If we implement that tax reform, Nigerian airlines will go down in three months,” Onyema said.
The warning comes amid rising public outrage over already inflated domestic fares, which during the Yuletide peaked between N250,000 and N450,000 on key routes, particularly to the South-East and South-South. Lawmakers have also voiced concerns over affordability for the average passenger.
Despite the backlash, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee confirmed that the new tax laws will come into effect from January 1, 2026. Analysts warn that without urgent review, the reforms could stifle domestic travel, reduce airline revenues, impact banks financing aviation operations, and slow economic activity linked to air transport.
Onyema’s comments underscore growing tensions between regulatory reforms and industry sustainability, with passengers likely to bear the brunt of rising costs if government policies are not carefully adjusted.
