FG urged to cut aviation taxes as Jet A1 fuel costs surge to N3,000/litre
The Federal Government has been advised to reduce aviation charges and taxes to lower airfares, with United Nigeria Airlines' CCO Adedayo Olawuyi stating at Lagos' AeroWest conference that Jet A1 fuel prices jumped from N900 per litre in December 2025 to N3,000 per litre in 2026. He noted West Africa has the continent's highest air passenger tax at $110 per departure—over three times Europe's $32 average—and that taxes/fees can consume up to 35% of airline revenues.
Olawuyi highlighted financing struggles, asking "How many of you would take a loan of 30% to invest in a business that gives you less than 5% profit?" while explaining that airlines face route challenges due to low West African passenger demand. He stressed that sector issues require government-regulator-industry cooperation, citing ECOWAS' unimplemented plan to abolish air ticket taxes across the sub-region from January 1, 2026—which remained inactive as of September 2026.
With aviation fuel comprising over 40% of operating costs and experts warning that higher Jet A1 prices would be passed to passengers through increased ticket prices, the advice targets making air travel affordable for average Nigerians for whom flying remains largely inaccessible due to high fares.
Will reduced aviation taxes actually lower your airfare enough to make flying a regular option, or will other cost pressures like fuel and financing keep prices prohibitively high for most travelers?