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

Changan CS55, Kia Seltos take top SUV honours at 2025 NAJA Auto Awards

Changan CS55 and Kia Seltos have clinched top honours at the 2025 Nigeria Auto Journalists Association (NAJA) International Auto Awards, winning Midsize SUV of the Year and Compact SUV of the Year, respectively.

The awards were announced at a recent well-attended ceremony held at the Oriental Hotel, Victoria Island, Lagos, which brought together key stakeholders across Nigeria’s automotive value chain to celebrate excellence, resilience and innovation in the industry.

Changan CS55’s latest recognition comes after its impressive performance at last year’s 17th edition of the awards, where it was crowned Nigeria’s New Car of the Year.

At the 2025 ceremony, the compact crossover SUV edged out strong contenders such as the Kia Sonet and Chery Tiggo to secure the coveted Midsize SUV title.

Changan vehicles are marketed and assembled in Nigeria by Mikano Motors, reinforcing the growing impact of local assembly in the country’s automotive sector.

In the Compact SUV category, the Kia Seltos emerged winner, beating notable competitors such as the Toyota Prado, Changan CS55 and Chery Tiggo.

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Industry analysts have described the Seltos as a compelling blend of practicality and style, praising its bold design, versatility and appeal to modern drivers.

Other corporate winners at the event are the Mikano Group, which was named Auto Company of the Year; Iron Products Industries (IPI) Limited, honoured as Truck Assembler/Body Builder of the Year; Lanre Shittu Motors (JAC), awarded Truck Plant of the Year; and Innoson Vehicle Manufacturing (IVM), which won Passenger Car Assembly Plant of the Year.

These recognitions highlighted the depth and growing strength of indigenous participation in Nigeria’s automotive industry.

Speaking at the ceremony, the Director-General of the National Automotive Design and Development Council (NADDC), Otunba Joseph Osanipin, commended NAJA for sustaining a credible platform promoting excellence and accountability within the sector.

In his welcome address, NAJA Chairman Mr Theodore Opara described the awards as a benchmark for performance in Nigeria’s evolving automotive ecosystem, noting that the industry continues to adapt amid policy reforms, technological advancements and changing consumer expectations.

The 2025 NAJA International Auto Awards once again underscored the critical role of leading brands in strengthening Nigeria’s transportation and industrial backbone, while celebrating outstanding achievements across the nation’s automotive landscape.

Changan CS55, Kia Seltos take top SUV honours at 2025 NAJA Auto Awards

Excited passengers hail FG as 50% yuletide train fare cut sparks nationwide rush

Excitement swept through major railway stations across the country on Tuesday and Wednesday as thousands of passengers turned out to enjoy the Federal Government’s 50 percent yuletide train fare reduction, with many openly praising the initiative as a major relief amid rising transport costs.

From the Lagos–Ibadan and Abuja–Kaduna standard gauge corridors to key narrow gauge routes, passengers arrived early, smiling, cheering and expressing gratitude to the government for what they described as a “timely Christmas gift.”

Several train services departed with near-full capacity as Nigerians seized the opportunity to travel cheaply to reunite with family and loved ones for the Christmas and New Year celebrations.

The discounted festive rail service, approved by the Federal Government and implemented by the Nigerian Railway Corporation (NRC), runs from Tuesday, December 23, 2025, to Sunday, January 4, 2026, offering passengers a 50 percent reduction on fares nationwide.

Speaking at various stations, passengers said the fare cut had significantly eased the financial burden of holiday travel, especially for families and group travellers.

Many described the initiative as people-centred and compassionate, noting that it allowed them to travel safely and comfortably at a time when road transport costs have surged.
“I never imagined I would travel this cheap during Christmas,” a passenger at the Lagos terminus said. “This is a big relief. The government has really tried, and we are grateful.”

Confirming the successful commencement of the programme, the NRC Chief Public Relations Officer, Callistus Unyimadu, said the turnout across major routes showed strong public acceptance of the initiative, adding that early bookings reflected overwhelming passenger interest.

The Managing Director and Chief Executive Officer of the NRC, Dr Kayode Opeifa, assured passengers that the corporation was fully prepared to sustain safe, efficient and customer-friendly services throughout the festive period.

He said enhanced security, safety and customer service measures had been put in place across stations and onboard trains to manage the increased traffic resulting from the fare reduction.

The NRC noted that both standard gauge and narrow gauge services are fully operational, advising passengers on standard gauge routes to continue using NRC-approved online booking platforms, while narrow gauge passengers can purchase tickets directly at designated railway stations.

The 50 percent yuletide train fare cut is part of the Renewed Hope Agenda of President Bola Ahmed Tinubu, aimed at reducing transportation costs, promoting inclusive mobility and encouraging rail transport as a safer and more reliable option during peak travel seasons.

As the festive rush continues, the NRC urged passengers to cooperate with railway officials and comply with travel guidelines to ensure smooth and hitch-free journeys throughout the discount period.
If you want, I can make it more emotional, more political, or more populist depending on the platform (Vanguard, Punch-style, or government-leaning tone).