Air Peace Founder and Chief Executive Officer, Allen Onyema, has disclosed that Nigerian airline operators are seeking an audience with President Bola Tinubu to discuss mounting challenges threatening the survival of domestic carriers.
Speaking during an interview on ARISE NEWS, Onyema said airlines across the country are struggling with multiple taxes, regulatory charges, expensive loans and rising aviation fuel costs, which have significantly increased operational expenses.
According to him, the difficulties facing Nigerian carriers are linked to a broader global aviation crisis fueled by geopolitical tensions, particularly the conflict involving the United States, Israel and Iran, which has pushed up aviation fuel prices worldwide.
“What has happened to Nigerian aviation is global. It’s a global crisis in the aviation industry. It’s not just limited to Nigeria alone. Since the advent of the US-Israel-Iran war, the aviation world has been adversely affected,” Onyema said.
The Air Peace boss noted that while airlines globally are grappling with rising costs, Nigerian operators are facing a more severe burden due to high fuel prices and costly borrowing conditions.
“No Nigerian airline is smiling now. We’ve all borrowed billions just to buy fuel and continue operations,” he stated.
Onyema also commended industrialist Aliko Dangote for establishing the Dangote Refinery, describing it as a significant boost to Nigeria’s economy and energy security. However, he argued that the major challenge affecting aviation fuel pricing lies within the distribution chain rather than the refinery itself.
“Dangote’s fuel, through MRS, remains the cheapest. The challenge is the middlemen within the supply chain,” he said.
Expressing concern over the state of the aviation sector, Onyema revealed that more than 70 airlines have ceased operations in Nigeria over the years, describing the country as having one of the highest airline failure rates globally.
“Over 70 airlines have come and gone in this country. Nigeria has the highest mortality rate of airlines worldwide. We have continued to raise concerns, but nobody seems to be listening,” he said.
While acknowledging reforms introduced by the Federal Government, including efforts to improve aircraft leasing opportunities, Onyema praised President Tinubu and Minister of Aviation and Aerospace Development, Festus Keyamo, for initiatives aimed at supporting the industry.
He, however, stressed that more engagement is needed and called on the President to hear directly from airline operators.
“We are seeking an appointment with the president. We appreciate what this government has done, but they need to listen more to us and understand the pain points affecting airlines,” Onyema said.
The aviation entrepreneur also criticised the five per cent Ticket Sales Charge (TSC), arguing that airlines bear the financial burden despite claims that the levy is paid by passengers.
“The truth is that the five per cent passenger TSC is charged to the airlines. If I charge ₦100,000, NCAA takes five per cent. If I charge ₦200,000, they still take five per cent. Aviation does not even guarantee a five per cent profit margin,” he explained.
Onyema called for the establishment of an Aviation Taxes and Charges Review Committee to reassess levies imposed on operators, warning that excessive charges have contributed to the collapse of many airlines.
“We want Mr. President to set up an aviation taxes and charges review committee. It is important to objectively assess these charges and their impact on the industry,” he said.
He further warned that the collapse of airlines would have far-reaching consequences for the economy, including job losses and financial risks for banks that have extended loans to operators.
“If any airline goes down, banks will take a hit, and thousands of jobs could be lost. The impact on the economy would be significant,” Onyema added.