No Nigerian airline made $1m profit, Onyema declares

The Chairman of Air Peace, Allen Onyema, declared that no Nigerian airline has ever made a $1 million profit despite the industry's substantial earnings. Speaking at the 30th anniversary conference of the League of Aviation Correspondents in Lagos, Onyema said the financial situation of Nigerian airlines is far worse than the public perception of significant profits due to rising airfares.

The conference, themed “Towards a Sustainable Aviation Industry: Balancing Government Revenue Demands with Sector Growth,” gathered government officials, airline operators, regulators, investors, and aviation journalists to discuss the industry's future. Onyema cited high costs such as taxes, regulatory charges, airport fees, fuel, and other expenses as the primary reason airlines struggle to make profits.

He argued that airlines should not be seen as a direct source of government revenue but rather as an indirect contributor through tourism, trade, employment, and connectivity. Industry data showed that aviation contributes around $2.5 billion annually to Nigeria's GDP and supports over 217,000 jobs. However, airline operators contend that the sector remains one of the most expensive environments to run an airline due to numerous taxes and fees imposed by aviation and government agencies.

Onyema advocated for the removal of several charges, including the Ticket Sales Charge and Cargo Sales Charge, and called for the harmonization of aviation taxes and levies to avoid duplication and double taxation. The chairman's views were supported by Bi-Courtney Aviation Services chairman, Olalekan Babalakin, who emphasized that a thriving aviation industry benefits both the government and the overall economy.