New tax laws will push domestic airfares to N1.7m — Air Peace CEO Onyema

More pain awaits Nigerians, as the Chairman and Chief Executive Officer of Air Peace, Allen Onyema, has warned that the country’s domestic aviation industry is heading for a major crisis if newly introduced tax laws are implemented from January 1, 2025, without the necessary review.

Onyema issued the warning during an interview with Arise Television on Sunday.

He blamed excessive taxes, levies and charges on airlines for high airfares.

He noted that domestic airfares could rise further to as much as N1.7 million and force local carriers out of business within months, with ripple effects on passengers, banks and the wider economy.

He dismissed claims that airlines are profiteering, explaining that most ticket revenue is lost to statutory deductions.
“People talk as if airlines are making a killing. It’s not true,” he said.

Onyema warned that the burden of the new tax reforms would ultimately fall on passengers, leading to a sharp rise in domestic fares. He added that Nigerian domestic airlines may collapse within three months under the new tax laws.

“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. At the end of the day, economy class tickets will go for about N1.7 million if it happens.”

His comments come amid growing public anger over already high domestic airfares. Meanwhile, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee has insisted that the new tax laws will take effect from January 1, 2026, despite calls for their suspension.

DAILY POST reports that single-route domestic airfares rose to between N250,000 and N450,000, especially to the South-East and South-South during the Yuletide, prompting outrage even from Nigerian lawmakers.

New tax laws will push domestic airfares to N1.7m — Air Peace CEO Onyema