HomeNewsNigeria among world's most expensive countries for airline operations, says IATA

Nigeria among world’s most expensive countries for airline operations, says IATA

Published on


KEY POINTS


  • IATA names Nigeria one of the world’s most expensive countries to operate an airline.
  • High taxes, charges and operational costs keep local carriers from competing and growing.
  • IATA urges ECOWAS members to implement a proposed 25 percent cut in aviation taxes.

The International Air Transport Association has named Nigeria one of the most expensive countries in the world to operate an airline. According to the body, high operational costs continue to challenge the viability and growth of the country’s local carriers.

High costs squeeze local carriers

Speaking at the IATA Annual General Meeting in Brazil, the association’s Regional Vice President for Africa and the Middle East, Kamil Al-Awadhi, said Nigerian airlines still face significant cost pressures. Notably, he acknowledged that the Minister of Aviation and Aerospace Development, Festus Keyamo, continues to push reforms to improve the sector.

However, Al-Awadhi said the high-cost environment still makes it hard for Nigerian airlines to stay competitive and profitable, which leaves the sector short of its full potential. Moreover, he noted that excessive taxes, charges and other operational expenses weigh on airlines across the region. As a result, he ranked Nigeria among the most challenging markets from a cost perspective.

IATA pushes for tax cuts

To tackle the problem, Al-Awadhi urged members of the Economic Community of West African States to implement the proposed 25 percent reduction in aviation taxes and charges. Furthermore, he said the cut would lower the cost of air travel, stimulate passenger traffic and improve the competitiveness of airlines operating within West Africa.

Industry stakeholders have long made a similar case. According to them, lower taxes and regulatory charges remain essential to affordable travel and stronger connectivity across the region. Consequently, IATA’s intervention adds to the growing pressure on West African governments to create a more enabling environment for the aviation industry.

Ultimately, analysts widely regard aviation as a key driver of trade, tourism and economic development. Therefore, the cost burden reaches well beyond the airlines themselves. In framing cheaper, more competitive travel as a benefit for the wider regional economy, IATA tied the health of Nigeria’s carriers to broader growth, jobs and connectivity across West Africa.

Latest articles

Finance Ministry, contractors clash again over outstanding debt

Nigeria's Finance Ministry says it processed N700bn to 1,240 local contractors, but protesting members of AICAN insist most of them have received no payment.

Xenophobia: Nigeria weighs sanctions against South Africa

Nigeria says it is weighing sanctions against South Africa over renewed xenophobic attacks on Nigerians, warning that a review of bilateral privileges is not off the table.

Agriculture records 3.15 percent GDP growth to N11.87trillion in first quarter

Nigeria's agricultural sector grew 3.15 percent year-on-year to N11.87trn in the first quarter of 2026, with crop production leading the gains at N8.9trn, the NBS says.

Sugar tax will worsen manufacturers’ plight, LCCI warns

The Lagos Chamber of Commerce and Industry warns that the Senate's Sugar-Sweetened Beverage tax bill could worsen the challenges facing Nigeria's manufacturing sector.

More like this

Finance Ministry, contractors clash again over outstanding debt

Nigeria's Finance Ministry says it processed N700bn to 1,240 local contractors, but protesting members of AICAN insist most of them have received no payment.

Xenophobia: Nigeria weighs sanctions against South Africa

Nigeria says it is weighing sanctions against South Africa over renewed xenophobic attacks on Nigerians, warning that a review of bilateral privileges is not off the table.

Agriculture records 3.15 percent GDP growth to N11.87trillion in first quarter

Nigeria's agricultural sector grew 3.15 percent year-on-year to N11.87trn in the first quarter of 2026, with crop production leading the gains at N8.9trn, the NBS says.