Why Nigerian Airlines May Go Extinct Within 30 Days – Onyema

Domestic carriers in Nigeria could shut down operations within the next month unless the Federal Government takes immediate steps to resolve severe economic pressures facing the aviation sector, according to Allen Onyema, Vice Chairman of the Airline Operators of Nigeria (AON) and Chairman of Air Peace.

Speaking in Lagos at the book launch of Pathways, Pilgrimage & Destiny: The Biography of Alhaji Muneer Bankole, the founder of Med-View Airline, Onyema highlighted the deep financial strains suffocating local carriers.

He noted that the business environment is plagued by soaring operating expenses, heavy regulatory levies, and multiple financial obligations.

“Going into aviation is not a piece of cake. It is an industry that is not very rewarding. It is capital-intensive, yet less rewarding. Today, we are facing a phase that poses existential threats. Except something drastic is done very quickly within the next 30 days, a lot of airlines might go extinct,” Onyema said.

The warning arrives amid mounting anxiety among operators regarding the rising cost of jet fuel, difficulties in securing foreign exchange, high maintenance expenses, and multiple statutory charges.

Onyema specifically targeted plans by aviation unions to picket carriers over unpaid remittances of the five percent Ticket Sales Charge (TSC), cautioning that such actions could paralyze domestic flight schedules nationwide.

He emphasized solidarity among operators, stating that carriers would unite if any single airline were targeted.

“If they picket any airline, others will go because there’s no need for that. There is nowhere in the world that government agencies use unions to talk about issues of debt.”

The five percent TSC is a mandatory fee collected by the Nigerian Civil Aviation Authority (NCAA) on all domestic tickets to fund various regulatory bodies, including the Nigerian Airspace Management Agency, Nigerian Meteorological Agency, Nigerian College of Aviation Technology, and Nigerian Safety Investigation Bureau.

Although the NCAA recently granted a 90-day deferment on advance payment guarantees meant to secure these funds, operators argue that the cumulative tax burden remains unsustainable.

“The airlines are not against helping the government generate revenue. But no airline in the world is taxed directly for revenue. The airlines indirectly provide revenue for the government,” Onyema explained.

Over the past three decades, more than 50 domestic airlines have collapsed in Nigeria, underscoring the long-term fragility of the aviation market.

Onyema criticized the lack of tangible backing from authorities, pointing out that historical struggles continue to repeat themselves.

“Everybody pities Nigerian airlines, yet nobody wants to do anything about their situation,” he remarked.

With aviation expenses largely tied to foreign currencies and operators continuously cutting flight frequencies or borrowing funds simply to purchase fuel, the AON continues to push for direct intervention from the presidency and a comprehensive review of all industry-related taxes and charges to ensure the survival of domestic air travel.