Aviation

High Taxes Affect Nigerian Airlines

Published

12 years ago

August 1, 2014

Airline operators of Nige
ria (AON) have warned that if government does not rescind the policy of multiple taxation on local airlines, many of them would go under as it has happened many times in the past.
The operators said that as at today no airline in the country is making profit and many of them are existing on the fringes as they struggle to fund their operations and pay their personnel.
According to them, considering the crucial role air transport plays in the economy of the nation, government should urgently take action by stopping the multi taxation and also remove landing and packing charges for airlines’ operational bases.
They also commended government for removing custom duty on imported aircraft and parts but added that the waiver is not enough because the airlines’ domestic routes are being taking away by foreign airlines that operate into many airports in the country.
AON therefore, demanded that government remove the Value Added Tax (VAT) and other taxes like landing and parking charges as well as review aeronautical charges which they argued domestic airlines should not be paying in the first place.
The Deputy Managing Director and Head of Flight Operations of Arik Air, Captain Ado Sanusi, said that issues of multiple taxation should be tackled in order to assist the airlines sustain their operations.
“The issue should be talked and there are so many incentives that should be given to airlines that are coming up in order to protect and encourage them grow. If you look at the airlines that have been very successful in the world, they have protection and they were given government backing to grow before they were allowed to compete with international carriers.
“So it is extremely important that government makes deliberate policies in protecting the industry and also allowing the airlines to grow, it should be in the interest of government to have viable airlines flying in the country,” Sanusi said.
The Managing Director of Jed Air and the Executive Chairman of Airline Operators of Nigeria (AON), Captain Nogie Meggison, described the high taxes as unfair especially the VAT, which he said domestic carriers are the only subsector in the transport industry that pay such tax.
According to him, the Nigerian constitution says VAT should not be paid on Transportation, aviation is the only sector paying VAT in Nigeria. Any other transportation, road, rail, maritime does not pay VAT, only Aviation pays VAT. The International carriers have been able to defend against paying it and government gave them waiver not to pay.
So the International carriers are also not paying VAT, only the domestic carriers pays. W e pay VAT, passenger service charge and five per cent charges to the Nigerian Civil Aviation Authority (NCAA) and we also pay charges to the Nigeria Airspace Management Agency (NAMA), so, how many taxes are we going to pay?.”

Aviation

March 28 Rollout: FAAN Directs Airlines Integration Into National Single Window

Published

5 days ago

February 23, 2026

The Tide

The Federal Airports Authority of Nigeria (FAAN) has directed all cargo airline operators to integrate their operations with the National Single Window (NSW) platform ahead of its official rollout in March 2026, in a move aimed at enhancing transparency, efficiency, and revenue collection in Nigeria’s trade ecosystem.

In a statement released last Tuesday to The Tide Correspondent at Omagwa Airport in Portharcourt, FAAN disclosed that its Directorate of Cargo Development and Services, in collaboration with the NSW implementation team, recently engaged key stakeholders across the aviation and cargo value chain to prepare them for the transition to the digital platform.

The statement said that during the engagement, cargo airline operators were directed by the Minister of Finance to begin submitting their air cargo manifests through the National Single Window platform as part of preparations for the official launch scheduled for March 27, 2026.

To ensure a seamless transition, FAAN said structured training sessions would be conducted for operators and other stakeholders ahead of the rollout to guarantee smooth adoption and effective utilisation of the system.

The National Single Window project, inaugurated by President Bola Ahmed Tinubu in April 2024, is designed to centralise and digitise the processing of trade documentation, including manifests, permits, licences and customs declarations, through a single electronic gateway.

With the platform entering its first operational phase on March 27, 2026, stakeholders expect significant improvements in the way trade-related processes are handled, particularly for freight forwarders, licensed customs agents and cargo operators.

According to project principals, the successful launch of the system is expected to boost the efficient collection of customs duties and other trade-related taxes by allowing traders to submit all required documentation electronically via one platform, eliminating the need to interface separately with multiple government agencies.

Other anticipated benefits include reduced administrative costs, improved transparency, enhanced security of trade procedures and increased foreign investment driven by a more predictable and efficient trade environment.

FAAN, MTN Nigeria Launch Free Wifi Service At Lagos, Abuja Airports

The Federal Airports Authority of Nigeria (FAAN) has partnered with MTN Nigeria to provide free WiFi services at the Murtala Muhammed International Airport (MMIA) Terminal 2 in Lagos and the Nnamdi Azikiwe International Airport in Abuja.

The service was officially launched on Thursday at the Lagos terminal.

FAAN’s Managing Director and Chief Executive, Olubunmi Kuku, who was represented at the event by the Director of Airport Operations, Abdullahi Mahmood, said the initiative is part of efforts to improve passenger experience and expand digital infrastructure at Nigerian airports.

According to FAAN, the service will be extended to the MMIA temporary terminal and other international airports across the country within the next three months.

Officials said the project is structured as a public-private partnership between FAAN and MTN Nigeria.

Speaking at the event, MTN Nigeria’s Chief Enterprise Business Officer, Lynda Saint-Nwafor, who represented the company’s Chief Executive Officer, Karl Toriola, said the company would ensure the service remains reliable and secure.

While FAAN described the rollout as a step toward modernising airport facilities, details of the funding model and long-term maintenance structure were not disclosed at the launch.

Airport users have long complained about limited or unreliable internet connectivity at major Nigerian terminals, particularly during peak travel periods.

However, FAAN did not immediately indicate whether the free service would be time-limited per user or subject to bandwidth restrictions.

By: Enoch Epelle

Aviation

Payment Of Cash: FAAN set February 28 Dateline in Nigeria Airport

Published

5 days ago

February 23, 2026

The Tide

The Managing Director/Chief Executive of the Federal Airports Authority of Nigeria (FAAN), Mrs. Olubunmi Kuku, has firmly reiterated the Authority’s resolve to fully implement a cashless payment system across all airport payment points nationwide, effective February 28, 2026.

The reaffirmation came during a visit by executives and members of the National Union of Air Transport Employees (NUATE), who sought clarification on the decision to discontinue cash transactions at airports in Lagos last Thursday.

The engagement provided an opportunity for robust dialogue, reflecting FAAN’s open-door policy and commitment to inclusive stakeholder consultation.

According to a statement by Henry Agbebire, Director, Public Affairs and Consumer Protection, FAAN, the MD/CE emphasised that the transition to a cashless system is not only in line with global best practices in aviation management but also consistent with Federal Government directives aimed at enhancing transparency, accountability, and operational efficiency.

She referenced a Treasury Circular dated November 24, 2025, issued by the Office of the Accountant General of the Federation and signed by the Accountant General, Shamseldeen Ogunjimi, mandating the cessation of cash transactions in all government dealings.

The directive followed approval by the Federal Executive Council for Ministries, Departments and Agencies (MDAs) to discontinue physical cash collections and payments as part of broader public finance reforms.

According to the MD/CE, “There is no going back on this decision.” She stressed that the cashless initiative aligns FAAN with national financial management reforms while positioning Nigeria’s airports for greater operational integrity, improved service delivery, and stronger revenue assurance.

Importantly, Mrs. Kuku noted that the reform also forms part of FAAN’s broader strategic agenda to deepen stakeholder engagement by fostering transparency, building trust, and ensuring that partners, unions, concessionaires, and service providers are carried along in key operational decisions.

By proactively engaging NUATE and other critical stakeholders, FAAN continues to demonstrate that institutional reforms and stakeholder collaboration must go hand in hand.Beyond compliance with government policy, the MD/CE highlighted the enormous benefits of a cashless system to the aviation ecosystem, including reduction in leakages, improved transaction traceability, faster service delivery, and enhanced public confidence in airport operations.

Addressing concerns raised about the use of Paystack as a third-party platform, she clarified that Paystack merely serves as a payment gateway for processing transactions.

She assured stakeholders that no revenue is paid into any Paystack account, as all payments are made directly from Point of Sale (POS) terminals into designated Federal Government accounts.

The NUATE delegation was comprehensively briefed on the processes and strategies put in place to ensure a seamless transition by the February 28, 2026 deadline.

At the end of the engagement, the Union members expressed satisfaction with the explanations provided and acknowledged that the implementation framework is both tenable and practical.

The move marks another significant milestone in FAAN’s ongoing reform agenda, reinforcing its commitment to modernising airport operations, strengthening institutional accountability, and promoting constructive engagement with stakeholders across the aviation value chain.

By: Enoch Epelle

Aviation

Aviation Professionals Want Agencies Boards’ Inauguration

Published

7 months ago

July 28, 2025

The Tide

As a measure to curb corruption and restore accountability, the Association of Nigeria Aviation Professionals (ANAP), has called on the Minister of Aviation and Aerospace Development, Festus Keyamo, to push for the urgent formation and inauguration of governing boards for all other aviation agencies.
ANAP’s Secretary General, AbdulRasaq Saidu, made this call at the weekend when interacting with aviation correspondents, in reaction to recent inauguration of Board of the Federal Airports Authority of Nigeria (FAAN).
Keyamo had recently inaugurated the FAAN board, more than six months after its members were appointed by President Bola Tinubu, where Dr. Umar Ganduje was named Board Chairman, with FAAN’s Managing Director, Olubunmi Kuku, as the Vice Chairman.
Other board members include representatives from the Ministries of Justice, Defence, Tourism, and Aviation, as well as professionals from the Nigerian College of Aviation Technology, and FAAN’s legal department.
The ANAP scribe there urged the aviation Minister not to stop at FAAN but to ensure that all aviation parastatals are given functional boards to restore order and credibility to the sector.
He, however, commended Keyamo for recently inaugurating the board of the Federal Airports Authority of Nigeria but stressed that more needed to be done.
Saidu also warned that the continued delay in constituting boards for other aviation agencies creates room for unchecked abuses, including illegal contracts, fraudulent employment practices, and mismanagement.
“The absence of governing boards violates the enabling Acts that established these agencies. Only properly constituted boards can enforce discipline, ensure due process in decision-making, and provide oversight to prevent corruption”, Saidu said.
He emphasised that the aviation unions, including ANAP, have consistently raised concerns about poor governance and lack of transparency within the aviation system.
He called on President Bola Tinubu to act swiftly by appointing board members for all relevant agencies, in the interest of fairness and aviation safety.
Saidu also tackled the former Minister of Aviation, Senator Hadi Sirika, for failing to inaugurate any boards during his eight-year tenure, despite appointments being made by former President Muhammadu Buhari.
“ANAP raised the alarm several times under Sirika’s leadership, but nothing changed. That lapse has continued under the current administration, and it must be addressed now”, Saidu stated.

By: Corlins Walter