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For Nigerians to enjoy lower air travel tickets, the federal government must streamline the over 20 taxes paid on every ticket purchased by travelers and address the rise in foreign exchange, says the chairman of United Nigeria Airlines, Prof. Obiora Okonkwo.
Speaking on Arise TV, Okonkwo who is the spokesperson of the Airline Operators of Nigeria (AON), said domestic operators are overburdened by multiple taxation and called for a review of taxes on each air ticket, saying that some of them are repetitions. He expressed concern that the federal government is deriving a lot of revenue from the aviation sector without re-investing to provide the necessary facilities and support to boost the industry.
He also disclosed that forex, which stands at about N1, 605.00 to one dollar, is impacting negatively on local airlines as operators are forced to buy spares and fix their aircraft in dollars even without increases in the cost of such spares abroad.
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“As long as the government does not create an enabling environment for the aviation sector to survive, which means access to single digit capital, reduction in all the charges and taxes that impact negatively on air travel business, we will still see increases in ticket prices. We just came back from South Africa on an IATA (International Air Travel Association) conference and it is on record that Nigeria still has the highest cost of aviation services. Every airline here pays higher than what is even paid by their peers in the western world, and we the local operators are victims of this. For every ticket that we sell, we have about 20 to 22 deductions. Some are even repetitions. We have been crying out and no one is even asking to know what the issues are and how to resolve them. The factors militating against the sector are not turning out right for the country.
“It is on record today that Nigeria Civil Aviation Authority (NCAA), which is an agency under the aviation ministry, is the fourth largest contributor of revenue to government. The question is where is that money coming from? It is coming from profit that operators would have retained and reinvested in growing their businesses. So, they are sucking us dry. It is not healthy for the industry and not healthy for our services. Still, the government is not investing adequately in the sector because any investment in the aviation sector is an investment in the future and progress of a country, given the importance of this sector,” he said.
Okonkwo lauded domestic operators for their resilience in the face of multiple challenges saying that the operators are patriotically primed to weather the storm and help propel Nigeria’s economic development. “We have been weathering the storm. If we did not have the ability and the resilience, we would have been grounded. There have been enough shocks in the industry for us to have collapsed, but we have remained resilient because of our patriotism,” he said.
He commended the leadership of the NCAA for ensuring high safety standards in the industry, saying that Nigeria has one of the strongest aviation regulatory agencies and best safety records in the world.
