Nigerian Airlines Warn of Imminent Fare Hike Over New Tax Reforms
story written uzuh rita july 23,2025 Airfares Set to Increase as Nigerian Airlines React to New Tax Policies
Passengers in Nigeria may soon experience higher airfares as domestic and international airlines warn of impending price hikes following the introduction of new tax reforms by the federal government.
Airline operators have expressed concerns that the revised tax structure, recently unveiled by the government as part of broader fiscal reforms, will significantly increase their operational costs. These changes are expected to directly affect ticket prices, with passengers bearing the brunt.
According to industry insiders, the new tax regime includes higher levies on aviation fuel, spare parts, and services, which airlines say will place further financial strain on an already fragile sector still recovering from post-pandemic challenges and currency depreciation.
The Airline Operators of Nigeria (AON), speaking through a spokesperson, said the aviation industry cannot absorb the additional costs without passing them on to customers.
“The new tax policies, if fully implemented, will force us to review fares upward. We are not in a position to continue operating at a loss,” the AON stated.
The group urged the government to reconsider the tax reforms or provide relief measures to protect both airline operators and Nigerian travelers from the ripple effects.
Aviation analysts have also warned that a hike in fares could reduce air travel demand, especially among middle-class travelers and small business owners who rely on affordable regional flights.
The federal government, however, has defended the reforms, saying they are aimed at boosting revenue, closing tax loopholes, and aligning Nigeria’s aviation tax structure with international best practices.
As discussions between aviation stakeholders and government officials continue, travelers are advised to brace for a potential spike in ticket prices in the coming weeks.
Industry experts have called for a balanced approach that supports revenue generation while safeguarding the growth and affordability of air travel in Nigeria.
