Airline operators protest multiple taxes in aviation industry

• Published On: 15 February 2025 at 19:53

Prof. Obiora Okonkwo, the founder of United Nigeria Airlines and spokesperson for the Airline Operators of Nigeria, has criticized the multiple charges imposed by government agencies in the aviation sector, describing them as a heavy burden on domestic airlines. He urged the federal government to take prompt action to assist local operators.

Okonkwo made the disclosure on Wednesday in Abuja during United Nigeria Airlines' fourth anniversary celebration.

However, he acknowledged that President Bola Tinubu's forex policy and the recently signed Cape Town Convention have helped to reduce operational costs in Nigeria's aviation sector.

""I believe that the Tinubu administration's foreign exchange policy has greatly benefited the airline industry." Before he took office, it was a nightmare for us to be able to convert the naira to foreign currencies to meet our obligations. We lost a large number of contracts.

"We lost many vendors. Because your money is stuck in naira in the bank and you can't get the forex you require. You can't even go to help yourself somewhere. So, this is a different story. You do not need to track funds as I mentioned for foreign operators; the government has cleared nearly a billion US dollars.

"It has provided a new opportunity for better relationships. Our reputation and integrity in the international aviation industry have improved. So we're happy with it."

Okonkwo expressed concern about the rising number of unruly passengers, linking it to flight delays and cancellations.

He emphasized that delays are a global issue and urged passengers to remain calm while understanding their rights and responsibilities.

"I can tell you that another major challenge we face as operators is our passengers. The same passengers who we work tirelessly to serve and please will turn around and become unruly for no apparent reason. They overemphasized the issues with delays. Delays occur in all parts of the world, but we must collaborate with the media to educate the traveling public about their rights and obligations. We understand what we owe them as operators.

"As operators, we go above and beyond to please them. We frequently go above and beyond what local flight operators do anywhere in the world to satisfy our passengers, but their attitudes and behaviors put a lot of pressure on the operators. "Passengers sometimes beat up airport staff, and equipment is destroyed," he added.

The Anambra-born business magnate urged the government to give airline operators access to low-interest loans and streamline multiple fees.

He emphasized that a government-backed program offering loans with single-digit interest rates to local operators would be critical to the industry's growth.

"They need to reduce the charges that operators pay to various government agencies, which total around twenty. The margins in this business are extremely low, and if you have to pay all of the NCAA, NAMA, and FAAN fees, you are left with nothing. It affects us; we need more money to develop, expand, and improve the working environment for our employees."