The Chief Financial Officer of Aero Contractors, Charles Grant, has called for decisive policy reforms to steer Nigeria’s aviation industry out of what he described as a prolonged period of fiscal and operational turbulence.
Speaking at a Civil Aviation Cost Recovery and Revenue Optimisation Stakeholders’ Retreat themed “Strengthening Collaboration for Revenue Optimisation and Operational Efficiency”, Grant said Nigerian airlines were not asking for bailouts but for an enabling environment that allows them to operate sustainably.
“We’re not here asking for handouts. We are asking for policies that enable Nigerian aviation to thrive,” he added.
Grant, who spoke on the topic “Fiscal Turbulence: Why Enabling Nigerian Airlines is Essential to Growing the Tax Base”, outlined a series of urgent policy actions that could reposition the sector for growth.
Itemising the solutions, Grant urged the government, as a matter of urgency, to restore the Value Added Tax exemption that domestic airlines previously enjoyed, describing the measure as an essential stabiliser that once kept fares within reach for ordinary travellers and helped carriers remain viable.
He also called for consistent enforcement of customs waivers on aircraft parts and critical spares, noting that bureaucratic inconsistencies and delays in clearing such items often ground aircraft unnecessarily, disrupting schedules and inflating maintenance costs.
Explaining his recommendations, Grant said the government must also “eliminate tax-on-tax loops where VAT is charged on ticket sales tax and other levies.” This, he said, compounds costs and inflates fares without improving revenue.
He added, “Streamline fiscal charges across tiers of government. The layering of federal, state, and airport authority charges needs harmonisation.
“Create a National Aviation Growth Framework, a coordinated plan across Ministries, the NCAA, Customs, and the Ministry of Finance to align aviation policy with industrial and economic goals.”
Grant urged policymakers to take a “clear-eyed look” at the nation’s tax laws and their ripple effects on the aviation ecosystem.
He noted that the removal of zero-VAT status on international travel has made Nigerian airlines less competitive than their global peers: “The Tax Act now uses vague language about what qualifies as a taxable supply. Without clarity, airlines are left guessing: will leases, spare parts, or maintenance contracts attract VAT? This uncertainty drives up costs and discourages investment.”
He further lamented that even where valid customs waivers exist, enforcement remains inconsistent.
Speaking on the reality facing Nigerian airlines, he stressed that some operators have been forced to operate with just four to six active aircraft, far below national demand.
Despite operators’ complaints over multiple taxation, the Nigeria Civil Aviation Authority has introduced another $11.50 on every ticket as a fee for the Advance Passenger Information System.
This, in collaboration with the Nigeria Immigration Service, was planned to receive passengers’ data ahead of their arrival.
Industry experts and stakeholders have criticised the NCAA over the attempt to monetise the new operation.
Baring his mind on the development, the President of the Aircraft Owners and Pilots Association of Nigeria, Alex Nwuba, condemned the regulator’s introduction of the new fee, describing it as “another blow to travellers and to Nigeria’s already burdened aviation sector.”
Also dissatisfied with the development, a retired pilot, Capt. Muhammed Badamosi, frowned on the new charge, suggesting that there might be underlying factors not yet disclosed to the public by the government.
Badamosi told our correspondent that the NCAA owes air travellers a clear explanation for the proposed hike in the existing security tax.
“I have said this before: there must be something hidden from the generality of air travellers that the government is capitalising on as the reason for the charge. The industry is not expecting such at a time like this,” he said.
