POLITICAL Economy

Aviation Stakeholders Warn Of Rising Taxes, Forex Pressures

by admin on | 2026-09-05 17:06:51

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Aviation Stakeholders Warn Of Rising Taxes, Forex Pressures

 ‎By Maryam Muhammad 

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‎Aviation stakeholders have warned that high taxes, foreign exchange pressures and widening mismatch between airlines' local-currency revenues and dollar-denominated operating costs are undermining the growth and sustainability of air transport across West and Central Africa.

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‎The concerns dominated discussions at the AeroWest Africa Annual Summit 2026 in Lagos, where airline executives, policymakers, tourism operators, investors and other industry players examined structural problems making air travel expensive and regional connectivity weak.

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‎Speaking during a panel session on “The Real Cost of Running Aviation Business: Fixing Connectivity, Affordability, FX, Fuel and Border Friction,” the Chief Commercial Officer of United Nigeria Airlines, Adedayo Olawuyi, said airlines are being squeezed by charges, taxes and operating expenses that are largely denominated in foreign currency.

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‎Olawuyi explained that while Nigerian airlines earn most of their revenue from ticket sales in naira, many of their major obligations like aircraft acquisition and leasing, maintenance, crew training and other technical services, require foreign currency, particularly the United States dollar.

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‎He said the situation leaves airlines exposed to exchange-rate pressures and makes it difficult for operators to maintain sustainable margins.

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‎“How many of you would take a loan of 30 per cent to invest in a business that gives you less than five per cent profit? That is a pressing issue for airlines in Africa, specifically in Nigeria,” Olawuyi said.

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He also identified a shortage of adequate aircraft Maintenance, Repair and Overhaul facilities within the region as another major challenge, forcing operators to take aircraft overseas for major maintenance which further increases foreign exchange requirements.

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‎According to him, reducing aviation taxes and charges would provide some relief to airlines and could ultimately help make air travel more affordable for passengers.

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‎The Managing Director and Chief Executive Officer of Jet Afrique Aviation Services Limited, Theodore Obi Chikelu, said poor connectivity, high operating costs and inadequate infrastructure continue to prevent the region from fully benefiting from aviation and tourism.

Chikelu said that many city pairs across West and Central Africa still lack direct flights, forcing passengers to take longer, costlier routes to reach destinations within the continent.

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‎He argued that the region needs stronger aviation infrastructure, more efficient passenger-processing systems, better maintenance facilities and harmonised policies capable of supporting airlines operating across national borders.

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‎The Chief Executive Officer of Wakanow, Adebayo Adedeji, also drew attention to the high cost of travelling between African countries, opining that expensive fares are suppressing demand that could otherwise support tourism, trade and cross-border businesses.

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‎AeroWest 2026, held in Lagos from September 2nd to 4th, brought aviation and tourism stakeholders together to discuss financing, connectivity, infrastructure, investment and policies required to strengthen the two sectors across West and Central Africa.

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‎The summit highlighted a central concern: until West Africa tackles high operating costs, foreign exchange exposure, fragmented regulations, and poor regional connectivity, it will struggle to turn its large population, tourism potential, and business activity into a competitive aviation market.