VAT on Aircraft, Spare Parts Threatens Survival of Nigerian Airlines, says Allen Onyema

The Air Peace CEO, Allen Onyema, has warned that Nigeria’s new tax laws threaten the survival of local airlines, arguing that the legislation reinstates taxes removed under the 2020 reforms. The taxes include customs duties on imported aircraft, aircraft parts, engines, and Value Added Tax (VAT) on tickets, which Onyema says will impose unsustainable financial burdens on airlines.

Speaking in an interview with Arise News on Sunday, Onyema stressed the high cost implications for airline operators.

“There is VAT on the importation of aircraft. For an aircraft worth $80 million, you are supposed to pay 7.5 percent. With bank loan interest rates at 30–35 percent, plus VAT on spare parts, it is unsustainable,” Onyema said. “If we implement that tax reform, Nigerian airlines will go down in three months.”

The Air Peace CEO also announced that the airline industry will no longer tolerate unruly passengers starting January 1, 2026. Onyema cited instances of disruptive behaviour by passengers on flights, including smuggling alcohol into the cabin, forcing upgrades to business class without payment, and threatening fellow travellers.

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He referenced a recent incident on a flight diverted to Manchester, UK, due to bad weather, where passengers staged a viral video accusing Air Peace of misconduct, despite British authorities confirming that over 200 flights were diverted that day.

Onyema emphasised that airlines will now enforce stricter measures, including blacklisting unruly passengers, asserting that the behaviour is currently being “supported by the system unnecessarily.”

The statement comes amid growing concerns over rising domestic airfares. On December 10, the Senate summoned the Aviation Minister, Festus Keyamo, and industry stakeholders over soaring ticket prices. Subsequently, on December 11, the House of Representatives called on the federal government to reduce aviation taxes by 50 percent to ease costs for travellers.

Onyema’s comments highlight both the financial pressures on Nigerian airlines due to aviation taxes and the sector’s new stance on passenger discipline to safeguard safety and service standards.

VAT on Aircraft, Spare Parts Threatens Survival of Nigerian Airlines, says Allen Onyema

NCAA arrests man who attempted to stow away on Overland Airways flight in Ilorin (Video)

The Nigeria Civil Aviation Authority (NCAA) has confirmed the arrest of a man identified as Segun Martins, who attempted to stow away on an Overland Airways flight at the Gen. Tunde Idiagbon International Airport, Ilorin, in Kwara State.

Michael Achimugu, NCAA’s Director of Public Affairs and Consumer Protection, said in a statement on Wednesday that the incident occurred around 3:02 pm, when Martins allegedly breached airside security and approached an aircraft preparing for take-off.

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According to the NCAA, the suspect attempted to hide between the aircraft tyres before he was spotted and apprehended by airport ground security personnel. He was subsequently handed over to the airport police division for further investigation.

During preliminary interrogation, Martins reportedly said he believed the aircraft was headed for the United States and attempted to escape Nigeria by concealing himself in the aircraft’s undercarriage.

The NCAA reiterated its commitment to ensuring strict security protocols across all airports in the country.

NCAA arrests man who attempted to stow away on Overland Airways flight in Ilorin

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NCAA arrests man who attempted to stow away on Overland Airways flight in Ilorin (Video)

FEC Approves Major Upgrades to Airports’ Navigation, Communication Systems to Boost Air Safety

The Federal Executive Council (FEC) has approved a series of major upgrades to Nigeria’s airport navigation and communication systems, aimed at enhancing air safety and modernising the nation’s aviation infrastructure.

The Minister of Aviation and Aerospace Development, Festus Keyamo, announced the approvals on Wednesday while briefing State House correspondents after the FEC meeting chaired by President Bola Ahmed Tinubu at the Presidential Villa, Abuja.

Keyamo revealed that the council approved the installation of an Advanced Surface Movement Guidance and Control System (A-SMGCS) in Lagos and Abuja airports. The system is designed to detect runway obstructions, improve visibility, and enhance ground safety operations.

In a move to strengthen aviation communication reliability, FEC also approved the procurement of aeronautical frequency monitoring and interference detection systems, as well as the construction of new modular air traffic control towers for eight airports.

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“Approval was given for the installation of an aeronautical frequency spectrum monitor and interference detection solution to improve communication between ground controllers, tower personnel and aircraft,” Keyamo said.

He explained that the system will significantly boost communication integrity and provide more precise guidance during runway approaches and departures.

Additionally, the council endorsed the upgrade, replacement, and installation of remote-controlled air–ground VHF radio communication systems in nine airports, including Lagos, Port Harcourt, Ilorin, Abuja, Kano, Maiduguri, Sokoto and Wukari.

Keyamo also disclosed that President Tinubu has approved the nationwide rollout of biometric-enabled e-gates at all international airports to fast-track passenger clearance and improve travel experience.

“These upgrades reflect Mr President’s commitment to modernising aviation facilities and ensuring safer, more efficient air travel across Nigeria,” he stated.

The minister emphasised that the comprehensive improvements will align Nigerian airports with global aviation standards and enhance overall operational efficiency.

FEC approves major upgrades to airports’ navigation, communication systems