The chairman and CEO of Air Peace, Allen Onyema, has issued a stark warning: a proposed tax law slated to take effect on January 1, 2026 could collapse Nigeria’s aviation industry if implemented without adjustments.
Representing the Airlines Operators of Nigeria (AON), Onyema said the industry already operates under razor-thin margins, and the new tax burdens including re-introduction of Value Added Tax (VAT), customs duties on aircraft and spares, and revived ticket and cargo levies could “crush” domestic carriers.
He announced plans by AON to meet with federal government officials and the National Assembly to review the tax proposals, arguing the reforms risk undoing years of recovery and investment in the sector under current aviation-industry reforms.
Industry stakeholders, including aircraft operators and service providers, have echoed the concern, warning that implementation could lead to widespread layoffs, flight cancellations, and spiraling airfares.
Air Peace and other carriers have urged the government to reconsider or restructure the tax law to shield the aviation sector while still expanding the national tax base
