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Domestic Airlines Shut Down Operations, Today

Nigerian airline operators have issued a notice that with effect from today, they would shut down their operations due to the high cost of aviation fuel which has hit N700 per litre.
A statement by the President of the group, Allen Onyema, made available to The Tide in Port Harcourt, stated that operators have carried on deploying and subsidising their services to passengers in the last four months despite the steady and astronomical hike in the price of JetA1 and other operating costs.
According to him, overtime, aviation fuel price (JetA1) has risen from N190 per litre to N700 currently.
He maintained that no airline in the world can absorb this kind of sudden shock from such an astronomical rise over a short period.
The airlines – Azman Air, Max Air, United Nigeria Airways, Ibom Air, Arik Air, Air Peace, Dana Air and Overland Airways – made this known in a letter addressed to the Minister of Aviation, Senator Hadi Sirika while copying the Director General of the Nigerian Civil Aviation Authority, Captain Musa Nuhu.
While aviation fuel worldwide is said to cost about 40percent of an airline’s operating cost globally, the present hike has shut up Nigeria’s operating cost to about 95percent.
In the face of this, airlines have engaged the Federal Government, the National Assembly, NNPC and oil marketers with the view to bringing the cost of JetA1 down which has currently made the unit cost per seat for a one hour flight in Nigeria today to an average of N120,000.
The latter cannot be fully passed to passengers who are already experiencing a lot of difficulties.
A statement advised the travelling public who intend to fly to make alternative arrangements to avoid being stranded at the country’s airports.
The statement read: “It is with a great sense of responsibility and patriotism that the Airline Operators of Nigeria (AON) have carried on deploying and subsidising their services to our highly esteemed Nigerian flying public in the last four months despite the steady and astronomical hike in the price of JetA1 and other operating costs.
“Overtime, aviation fuel price (JetA1) has risen from N190 per litre to N700 currently. No airline in the world can absorb this kind of sudden shock from such an astronomical rise over a short period. While aviation fuel worldwide is said to cost about 40percent of an airline’s operating cost globally, the present hike has shut up Nigeria’s operating cost to about 95percent.
“In the face of this, airlines have engaged the Federal Government, the National Assembly, NNPC and oil marketers with the view to bringing the cost of JetA1 down which has currently made the unit cost per seat for a one hour flight in Nigeria, today, to an average of N120,000. The latter cannot be fully passed to passengers who are already experiencing a lot of difficulties.
“While AON appreciates the efforts of the current government under the leadership of President Muhammadu Buhari to ensure air transport in Nigeria grows, unfortunately, the cost of aviation fuel has continued to rise unabated thereby creating huge pressure on the sustainability of operations and financial viability of the airlines. This is unsustainable and the airlines can no longer absorb the pressure.
“To this end therefore, the Airline Operators of Nigeria (AON) hereby wishes to regrettably inform the general public that member airlines will discontinue operations nationwide with effect from Monday, May 9, 2022 until further notice.
“AON uses this medium to humbly state that we regret any inconveniences this very difficult decision might cause and appeal to travellers to kindly reconsider their travel itinerary and make alternative arrangements”, President, AON, Alhaji Abdulmunaf Yunusa Sarina, advised.
However, Ibom Air has said that it is not part of the decision of Airline Operators of Nigeria (AON) to suspend flight operations from tomorrow over increase in aviation fuel price to N700.
The airline said even though it acknowledged the existential threat that fuel price increases pose for the air transport industry in Nigeria, it could not afford to stop operating given its obligations to suppliers, financiers and staff, which depend on uninterrupted flow of revenue to service.
It said every airline has its unique business model and pressures and that despite the escalating fuel prices, airlines volunteering to stop operations would rather exacerbate an already bad situation.
“Ibom Air acknowledges the existential threat that these runaway fuel price increases pose for the air transport industry in Nigeria. We agree that this out-of-control situation is simply unsustainable.
“However, every airline has its unique business model and pressures. We believe that in spite of the escalating fuel prices, airlines volunteering to stop operations would rather exacerbate an already bad situation.
“Ibom Air has financial obligations to suppliers, financiers and staff, which depend on uninterrupted flow of revenue to service. More importantly is the fact that having been paid by customers in advance for flight bookings we are bound by contract to deliver the services already paid for, to avoid exposing the airline to the risk of avoidable litigation.
“Apart from the above factors, Ibom Air is currently the only airline serving Akwa Ibom State directly and as such, any voluntary stoppage of operations would completely cut off access by air into and out of the state. Such action would be directly in conflict with and detrimental to the interest of our shareholder.
“In view of the foregoing facts, Ibom Air had respectfully disagreed with the decision of AON to suspend flight operations on Monday, May 9, 2022. Ibom Air cannot in the circumstance volunteer to stop operating and will continue normal operations on Monday, May 9, 2022, and beyond.
“Ibom Air’s inclusion as ‘signatory’ to the statement released by AON must have derived from its active and committed membership of the AON.
“The above notwithstanding, we identify very strongly with our AON colleagues and will participate in every effort to resolve this frightening situation as soon as possible in the interest of our business, our customers, our stakeholders and our country,” the airline said.
Meanwhile, the Minister of Aviation, Senator Hadi Sirika, yesterday, said the planned shutdown of airline operations by Airline Operators of Nigeria (AON) wasn’t in any way a strike against the Federal Government.
The ministry reacted to inquiries by some media houses to clarify if the notice to the Federal Government and passengers by the Airline Operators of Nigeria to shut down airline operations from Monday, 9th was a strike over the rising cost of Jet-A1.
In a statement by the Special Assistant to the Minister of Aviation, Dr James Odaudu, he said operations of airlines were purely their private business and not connected to being a strike.
His statement read: “Since members of the Airline Operators of Nigeria (AON) issued a notice of withdrawal of flight services as a result of the rising cost of Jet A1 (Aviation fuel), and in spite of the initial statement by the ministry, enquiries have continued to flood in with some under the erroneous impression that the withdrawal was a kind of strike against the government.
“We wish to state that the decision of the association is purely a business one as they are private businesses reacting to market forces but appealing for interventions to enable them to carry on with their operations.
“The ministry has always made conscious efforts to assist members of the Airline Operators of Nigeria (AON), some of which includes facilitating a meeting between the Association and Mr President, during which the Association got several concessions, including duty-free importation of aircraft, engines, spare parts and components.
“The Honourable Minister at various times personally took members of the association to engage with Central Bank of Nigeria (CBN) to sort out issues of access to Foreign Exchange (FOREX) for their operations, and also the NNPC to exploit ways of ensuring the availability of Aviation fuel (JET A1) through importation or from the major marketers.
“It should also be recalled that members of the association were also considered for, and given Bail-out funds to the tune of N4billion during the COVID-19 pandemic to ensure that they remained afloat. This was without prejudice to the fact that most of them were heavily indebted to aviation agencies (as they still are).
“We believe that members of the association are patriots who have continued to bear the brunt of an unfavourable oil market for which we salute their doggedness.
“It is gratifying that members of the association have started reviewing the decision to withdraw flight services, with Ibom Air Green Africa Airlines, Arik Air, Dana and others confirming that they will carry on with their normal flight schedules. We hope that other members will consider the expected impact on businesses and individuals and review their decision.
“We also wish to assure foreign airlines operating in the country that all logistics and services for their operations remain in place as usual and that no disruptions whatsoever should be envisaged.
“As a government, we reiterate our commitment to the continued growth of the aviation industry where airlines and other service providers operate in a profitable and competitive environment.”
In the same token, the Federal Competition and Consumer Protection Commission (FCCPC) has warned airlines against selling tickets if they won’t operate.
The caution followed the information by Airline Operators of Nigeria (AON) on the shutdown of flight operations from today.
The carriers particularly blamed the high and increasing cost of jet fuel for their decision.
Though Ibom Air has announced that it would continue operations, others seem resolved to carry out the threat.
In a statement, FCCPC chief Babatunde Irukera, appealed to them to consider the effect of the proposed action on passengers.
The agency said it does not trivialise the challenge the current price of fuel poses to domestic aviation, coupled with other rising costs of operations and foreign exchange.
Irukera said talks were ongoing with the leadership of major fuel marketers to understand the global supply challenges and possible steps for resolution.
The commission advocated engagement among stakeholders to mitigate constraints and develop an interim arrangement to address problems associated with global supply on account of the war, sanctions and post-pandemic recovery.
The FCCPC, however, raised concern about rising consumer feedback that airlines have continued to sell tickets beyond the date announced for the proposed service shutdown.
“It will be egregious exploitation of consumers and a violation of law to purport to sell a service that the service provider knows, it will not, or does not intend to provide or deliver.
“It is misleading and deceptive under S.123 of the FCCPA to represent a service will be delivered on a certain date when the provider knows the same is false or improbable,” it said.
The statement expressed hope that airline operators will not deliberately sell tickets for flights they do not intend to operate.
Irukera said the agency would continue to monitor the evolving situation and remain committed to supporting engagements to provide solutions and stability.
By: Ike Wigodo
Featured
Tinubu Signs Four Tax Reform Bills Into Law …Says Nigeria Open For Business

President Bola Tinubu yesterday signed into law four tax reform bills aimed at transforming Nigeria’s fiscal and revenue framework.
The four bills include: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
They were passed by the National Assembly after months of consultations with various interest groups and stakeholders.
The ceremony took place at the Presidential Villa, yesterday.
The ceremony was witnessed by the leadership of the National Assembly and some legislators, governors, ministers, and aides of the President.
The presidency had earlier stated that the laws would transform tax administration in the country, increase revenue generation, improve the business environment, and give a boost to domestic and foreign investments.
“When the new tax laws become operational, they are expected to significantly transform tax administration in the country, leading to increased revenue generation, improved business environment, and a boost in domestic and foreign investments,” Special Adviser to the President on Media, Bayo Onanuga said on Wednesday.
Before the signing of the four bills, President Tinubu had earlier yesterday, said the tax reform bills will reset Nigeria’s economic trajectory and simplify its complex fiscal landscape.
Announcing the development via his official X handle, yesterday, the President declared, “In a few hours, I will sign four landmark tax reform bills into law, ushering in a bold new era of economic governance in our country.”
Tinubu made a call to investors and citizens alike, saying, “Let the world know that Nigeria is open for business, and this time, everyone has a fair shot.”
He described the bills as not just technical adjustments but a direct intervention to ease burdens on struggling Nigerians.
“These reforms go beyond streamlining tax codes. They deliver the first major, pro-people tax cuts in a generation, targeted relief for low-income earners, small businesses, and families working hard to make ends meet,” Tinubu wrote.
According to the President, “They will unify our fragmented tax system, eliminate wasteful duplications, cut red tape, restore investor confidence, and entrench transparency and coordination at every level.”
He added that the long-standing burden of Nigeria’s tax structure had unfairly weighed down the vulnerable while enabling inefficiency.
The tax reforms, first introduced in October 2024, were part of Tinubu’s post-subsidy-removal recovery plan, aimed at expanding revenue without stifling productivity.
However, the bills faced turbulence at the National Assembly and amongst some state governors who rejected its passing in 2024.
At the NASS, the bills sparked heated debate, particularly around the revenue-sharing structure, which governors from the North opposed.
They warned that a shift toward derivation-based allocations, especially with VAT, could tilt fiscal balance in favour of southern states with stronger consumption bases.
After prolonged dialogue, the VAT rate remained at 7.5 per cent, and a new exemption was introduced to shield minimum wage earners from personal income tax.
By May 2025, the National Assembly passed the harmonised versions with broad support, driven in part by pressure from economic stakeholders and international observers who welcomed the clarity and efficiency the reforms promised.
In his tweet, Tinubu stressed that this is just the beginning of Nigeria’s tax evolution.
“We are laying the foundation for a tax regime that is fair, transparent, and fit for a modern, ambitious Nigeria.
“A tax regime that rewards enterprise, protects the vulnerable, and mobilises revenue without punishing productivity,” he stated.
He further acknowledged the contributions of the Presidential Fiscal Policy and Tax Reform Committee, the National Assembly, and Nigeria’s subnational governments.
The President added, “We are not just signing tax bills but rewriting the social contract.
“We are not there yet, but we are firmly on the road.”
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Senate Issues 10-Day Ultimatum As NNPCL Dodges ?210trn Audit Hearing

The Senate has issued a 10-day ultimatum to the Nigerian National Petroleum Company Limited (NNPCL) over its failure to appear before the Senate Committee on Public Accounts probing alleged financial discrepancies amounting to over ?210 trillion in its audited reports from 2017 to 2023.
Despite being summoned, no officials or external auditors from NNPCL showed up yesterday.
However, representatives from the representatives of the Economic and Financial Crimes Commission, Independent Corrupt Practices and Other Related Offences Commission and Department of State Services were present.
Angered by the NNPCL’s absence, the committee, yesterday, issued a 10-day ultimatum, demanding the company’s top executives to appear before the panel by July 10 or face constitutional sanctions.
A letter from NNPCL’s Chief Financial Officer, Dapo Segun, dated June 25, was read at the session.
It cited an ongoing management retreat and requested a two-month extension to prepare necessary documents and responses.
The letter partly read, “Having carefully reviewed your request, we hereby request your kind consideration to reschedule the engagement for a period of two months from now to enable us to collate the requested information and documentation.
“Furthermore, members of the Board and the senior management team of NNPC Limited are currently out of the office for a retreat, which makes it difficult to attend the rescheduled session on Thursday, 26th June, 2025.
“While appreciating the opportunity provided and the importance of this engagement, we reassure you of our commitment to the success of this exercise. Please accept the assurances of our highest regards.”
But lawmakers rejected the request.
The Committee Chairman, Senator Aliyu Wadada, said NNPCL was not expected to submit documents, but rather provide verbal responses to 11 key questions previously sent.
“For an institution like NNPCL to ask for two months to respond to questions from its own audited records is unacceptable,” Wadada stated.
“If they fail to show up by July 10, we will invoke our constitutional powers. The Nigerian people deserve answers,” he warned.
Other lawmakers echoed similar frustrations.
Senator Abdul Ningi (Bauchi Central) insisted that NNPCL’s Group CEO, Bayo Ojulari, must personally lead the delegation at the next hearing.
The Tide reports that Ojulari took over from Mele Kyari on April 2, 2025.
Senator Onyekachi Nwebonyi (Ebonyi North) said the two-month request suggested the company had no answers, but the committee would still grant a fair hearing by reconvening on July 10.
Senator Victor Umeh (Anambra Central) warned the NNPCL against undermining the Senate, saying, “If they fail to appear again, Nigerians will know the Senate is not a toothless bulldog.”
Last week, the Senate panel grilled Segun and other top executives over what they described as “mind-boggling” irregularities in NNPCL’s financial statements.
The Senate flagged ?103 trillion in accrued expenses, including ?600 billion in retention fees, legal, and auditing costs—without supporting documentation.
Also questioned was another ?103 trillion listed under receivables. Just before the hearing, NNPCL submitted a revised report contradicting the previously published figures, raising more concerns.
The committee has demanded detailed answers to 11 specific queries and warned that failure to comply could trigger legislative consequences.
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17 Million Nigerians Travelled Abroad In One Year -NANTA

The National Association of Nigerian Travel Agencies (NANTA) said over 17 million Nigerians travelled out between 2023 and 2024.
This is as the association announced that it would be organising a maiden edition of Eastern Travel Market 2025 in Uyo, Akwa Ibom State capital from 27th to 30th August, 2025.
Vice Chairman of NANTA, Eastern Zone, Hope Ehiogie, disclosed this during a news briefing in Port Harcourt.
Ehiogie explained that the event aims to bring together over 1,000 travel professionals to discuss the future of the industry in the nation and give visibility to airlines, hospitality firms, hospitals and institutions in the South-South and South-East, tagged Eastern Zone.
He stated that the 17 million number marks a significant increase in overseas travel and tours.
According to him, “Nigerian travel industry has seen significant growth, with 17 million people traveling out of the country in 2023”.
Ehiogie further said the potential of tourism and travel would bring in over $12 million into the nation’s economy by 2026, saying it would be a major spike in the sector, as 2024 recorded about $4 million.
“The potential of tourism and travel is that it can generate about $12 million for the nation’s economy by 2026. Last year it was $4 million.
“In the area of travels, over 17 million Nigerians traveled out of the country two years ago for different purposes. This included, health, religious purposes, visit, education and others,” Ehiogie said.
While highlighting the potential of Nigeria’s tourism, he said the hospitality industry in Nigeria has come of age, saying it is now second to none.
The Vice Chairman of NANTA, Eastern Zone further said, “We are not creating an enabling environment for business to thrive. We need to support the industry and provide the necessary infrastructure for growth.”
He said the country has a lot of tourism potential, especially as the government is now showing interest in and supporting the sector.
Ehiogie emphasized that NANTA has been working to support the industry with initiatives such as training schools and platforms for airlines and hotels to sell their products.
He added, “We now have about four to five training schools in the region, and within two years, the first set of students will graduate. We are helping airlines sell tickets and hotels sell their rooms.”
Also speaking, former Chairman of the Board of Trustees of NANTA, Stephen Isokariari of Dial Travels, called for more support from the industry.
Isokariari stated, “We need to work together to grow the industry and contribute to the nation’s Gross Domestic Product.
“With the right support and infrastructure, the Nigerian travel industry has the potential to make a significant contribution to the nation’s economy.”