Chief Financial Officer, Aero Contractors, Mr. Charles Grant, has said that government’s harsh fiscal policies have impeded the growth of domestic airlines.
He stated this recently at the Civil Aviation Cost Recovery Optimisation Stakeholders Retreat in Lagos.
The meeting themed: ‘Strengthening Collaboration for Revenue Optimization and Operational Efficiency’, organised by the Directorate of Finance and Accounts of the Nigerian Civil Aviation Authority (NCAA), created opportunity for airlines to express their views on government’s taxes and charges levelled on airlines through the aviation agencies.
While addressing participants at the event, Grant said that aviation could not be a luxury but a vital platform for commerce and integration.
He therefore said government should recongise its invaluable role and not tax airlines out of existence, emphasising that one cannot tax what doesn’t survive.
He said airlines are burdened by heavy taxes, noting that the fares passengers pay for their flight are layered with taxes.
Grant emphasised that taxes levelled on airlines do not enhance the federal government’s revenue because in the long term, airlines operating capacity dwindles and that impacts on its revenues and subsequently the taxes it pays.
He disclosed that Nigeria’s domestic passenger volumes fell 3 per cent from 2022 to 2024, when compared to some countries in Africa that have similar market. “Egypt, Kenya, and South Africa grew by 10–15 per cent in the same period. Also, despite strong demand, Nigeria’s carriers are losing market share because the growth is stalling under rising costs and uncoordinated policies not aligned with aviation realities and this stagnation threatens future tax base, connectivity, and job creation,” he said.
