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.