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By Merit Ibe
The Centre for the Promotion of Private Enterprise (CPPE) has called for reform of Nigeria’s aviation cost structure, warning that excessive charges are consuming up to 35% of airline revenues and threatening the sector’s survival.
In a policy brief on aviation debt relief, the Centre praised Bola Ahmed Tinubu for approving a 30 percent discount on debts owed by domestic airlines, describing the move as timely support for operators facing rising and unsustainable costs.
The CPPE Director, Dr Muda Yusuf, also commended the Minister of Aviation and Aerospace Development, Festus Keyamo, for his continued engagement with industry stakeholders.
However, Yusuf stressed that while the debt relief offers short-term reprieve, it does not address the deeper structural issues plaguing the industry.
He pointed to the heavy burden of multiple taxes, fees, and levies imposed by agencies such as the Nigerian Civil Aviation Authority, Federal Airports Authority of Nigeria, and Nigerian Airspace Management Agency.
According to CPPE, these charges significantly erode airline earnings, making it difficult for operators to remain viable in a sector already known for thin profit margins.
Yusuf noted that aviation plays a vital role in economic connectivity, trade, and national integration. He added that with growing insecurity on roads, more Nigerians now depend on air travel, increasing the sector’s importance.
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Despite this, the industry continues to face a high rate of airline failures, largely due to what he described as a harsh operating environment.
“The sector has also become even more critical because road travel has become increasingly unsafe in many parts of the country, compelling many Nigerians to opt for air travel as a safer alternative. Yet, the sector continues to suffer from a persistently high airline mortality rate, largely reflecting the difficult and hostile operating environment.”
CPPE therefore urged the Federal Government to undertake a comprehensive rationalisation of aviation charges.
“The current regime, spanning ticket sales charges, cargo sales charges, passenger service charges, landing and parking fees, aircraft inspection charges, administrative and facility fees, boarding bridge charges, fuel-related charges, and import duties on aircraft and spare parts—is overly burdensome, fragmented and detrimental to the sustainability of domestic airline operations.
“A streamlined and moderated cost structure is imperative. Reducing both the multiplicity and magnitude of these charges will significantly enhance the viability, competitiveness and resilience of domestic airlines.
This is not only an economic imperative but also a safety consideration, as excessive financial pressure on operators could have unintended consequences for operational standards.”
He said government support for the aviation sector must therefore go beyond debt relief.
“What is needed is a comprehensive reform of the aviation cost environment to ensure that domestic airlines are not overburdened by charges that undermine investment, weaken service quality, raise ticket prices and threaten the long-term sustainability of the sector.”
