BY OLAPEJU OLUBI
The International Air Transport Association (IATA) has described Nigeria as one of the most expensive countries in the world to operate an airline, warning that the high-cost environment is undermining the growth, profitability and competitiveness of local carriers.
The global airline body made the observation during its Annual General Meeting in Brazil, where it highlighted the mounting financial pressures facing airlines across Africa and the Middle East.
Speaking at the event, IATA’s Regional Vice President for Africa and the Middle East, Kamil Al-Awadhi, acknowledged ongoing reforms being pursued by the Minister of Aviation and Aerospace Development, Festus Keyamo, but stressed that operators in Nigeria continue to grapple with some of the highest operating costs globally.
According to him, the burden of multiple taxes, airport charges, regulatory fees, fuel costs and other operational expenses has created a difficult business environment for airlines, making it challenging for them to remain profitable and expand their operations.
Al-Awadhi noted that while Nigeria possesses one of Africa’s largest aviation markets and significant growth potential, the cost structure confronting airlines has continued to limit investment, fleet expansion and route development.
He warned that unless urgent measures are taken to reduce the financial burden on operators, the country’s aviation sector may struggle to fully realise its capacity to drive economic growth, job creation and regional connectivity.
The IATA executive therefore called on member states of the Economic Community of West African States (ECOWAS) to accelerate the implementation of a proposed 25 per cent reduction in aviation-related taxes and charges.
He said lowering taxes and fees would make air travel more affordable, stimulate passenger demand, improve airline profitability and strengthen the competitiveness of the region’s aviation industry.
According to him, reducing the cost of doing business for airlines would not only benefit operators but also encourage greater mobility, tourism growth, trade expansion and investment across West Africa.
Industry stakeholders have repeatedly identified multiple taxation, high airport charges, foreign exchange constraints and the soaring cost of aviation fuel as major obstacles confronting airlines in Nigeria and other African markets.
Many operators argue that these challenges have contributed to rising airfares, reduced route networks and mounting financial pressures on carriers already operating on thin margins.
The latest remarks from IATA are expected to intensify calls for policy reforms aimed at reducing operating costs and creating a more business-friendly aviation environment.
Experts maintain that a more competitive cost structure could unlock significant growth opportunities for Nigeria’s aviation sector, boost passenger traffic and position the country as a stronger regional aviation hub.
With aviation increasingly recognised as a catalyst for trade, tourism and economic development, stakeholders say addressing the industry’s cost challenges has become critical to achieving sustainable growth and improving connectivity within Nigeria and across the African continent.
Olapeju is a journalist and aviation reporter.
