No Nigerian airline made $1m profit, Onyema declares

At a 30th anniversary conference of the League of Aviation Correspondents in Lagos, Air Peace Chairman Allen Onyema declared that no Nigerian airline has made $1 million in annual profit. Onyema, speaking at the event themed “Towards a Sustainable Aviation Industry: Balancing Government Revenue Demands with Sector Growth,” highlighted the significant costs airlines face, including taxes, regulatory charges, airport fees, fuel, and other expenses.

He emphasized that airlines operate under a heavy cost structure that deeply impacts their revenues. Onyema stressed that the government should not view airlines as a direct source of revenue, but rather as a sector that generates indirect economic benefits through tourism, trade, employment, and connectivity. According to industry data, aviation contributes about $2.5 billion annually to Nigeria's GDP and supports over 217,000 jobs.

Despite these contributions, airlines contend with numerous taxes and fees imposed by aviation and government agencies, making the sector one of the most expensive environments to operate in. Onyema called for the removal of the five percent Ticket Sales Charge and Cargo Sales Charge, advocating for a fixed unit charge as a more sustainable approach for airlines struggling with high fuel and operating costs.

He also supported the harmonization of aviation taxes and levies to avoid duplication and double taxation. Onyema's stance was supported by Bi-Courtney Aviation Services Chairman Olalekan Babalakin, whose Acting Chief Operating Officer, Remi Jibodu, echoed similar sentiments. Jibodu highlighted the Murtala Muhammed Airport Terminal 2 as an example of how private capital can thrive under a predictable framework, urging the government to provide policy consistency, contractual certainty, and an environment to attract long-term private investment in airport infrastructure.

The League of Aviation Correspondents emphasized the need for deeper consultation among government, aviation agencies, airlines, airport operators, labor, and investors before making major fiscal or regulatory decisions, focusing on how much revenue the sector can reasonably bear without compromising its growth potential.