The International Air Transport Association (IATA) has identified Nigeria as one of the most expensive countries in the world for airline operations, warning that the high-cost environment is hindering the growth and sustainability of carriers in the country.
The concern was raised by IATA’s Regional Vice President for Africa and the Middle East, Kamil Al-Awadhi, during the association’s Annual General Meeting held in Brazil.
Al-Awadhi acknowledged ongoing efforts by Nigeria’s Minister of Aviation and Aerospace Development, Festus Keyamo, to reform the sector and improve the operating environment.
However, he stressed that airlines in Nigeria continue to grapple with enormous operational expenses that make it difficult for them to remain competitive and financially viable.
According to him, the burden of excessive costs has placed Nigeria among the most challenging aviation markets globally, limiting the ability of domestic carriers to achieve sustainable growth and fully harness the opportunities available in the industry.
He noted that the problem is not peculiar to Nigeria alone, as airlines across the African region continue to contend with multiple taxes, charges and high operating expenses. Nevertheless, he said Nigeria ranks among the most expensive jurisdictions in which airlines conduct business.
Al-Awadhi therefore called on member states of the Economic Community of West African States (ECOWAS) to adopt the proposed 25 per cent reduction in aviation taxes and charges.
He explained that such a move would significantly lower the cost of air travel, encourage passenger traffic and enhance the competitiveness of airlines operating within the West African sub-region.
According to him, reducing the financial burden on airlines would not only benefit operators but would also make air transport more affordable and accessible to travellers, thereby stimulating economic activity and improving regional connectivity.
Industry stakeholders have repeatedly advocated lower taxes and regulatory charges, arguing that the present cost structure has contributed to expensive airfares and constrained the growth potential of the sector.
They maintain that creating a more favourable operating environment is crucial to improving connectivity and attracting investment into the industry.
The latest remarks from IATA add to growing calls for governments in West Africa to implement policies aimed at strengthening the aviation industry, which is widely recognised as a catalyst for trade, tourism and economic development.
With the region seeking to boost intra-African connectivity and deepen economic integration, experts believe that reducing the cost of doing business for airlines will be essential to unlocking the full potential of air transport and supporting broader economic growth.
