The International Air Transport Association (IATA) has identified Nigeria as one of the most expensive countries globally for airline operations, citing rising operational expenses that continue to constrain the growth and profitability of domestic carriers.
The aviation body warned that the prevailing cost environment poses a significant challenge to airlines and could limit the sector’s contribution to economic development if urgent reforms are not implemented.
Speaking during the IATA Annual General Meeting in Brazil, IATA Regional Vice President for Africa and the Middle East, Kamil Al-Awadhi, acknowledged ongoing efforts by Nigeria’s Minister of Aviation and Aerospace Development, Festus Keyamo, to improve the aviation industry.
However, he noted that despite those efforts, airlines operating in Nigeria still contend with some of the highest operating costs in the world.
According to Al-Awadhi, the financial burden created by multiple taxes, regulatory charges and other operational expenses continues to weaken the competitiveness of airlines and reduce opportunities for expansion.
He explained that the challenging business environment has made it increasingly difficult for operators to maintain profitability while delivering affordable services to passengers.
The IATA official stressed that the situation is not unique to Nigeria alone but remains particularly severe within the country compared to many other aviation markets.
He noted that excessive charges imposed on airlines across the region have continued to hinder the development of a more efficient and accessible air transport system.
To address the problem, Al-Awadhi called on member states of the Economic Community of West African States (ECOWAS) to implement a proposed 25 per cent reduction in aviation-related taxes and charges.
According to him, lowering these costs would make air travel more affordable for passengers, stimulate demand, increase passenger traffic and enhance the competitiveness of airlines operating within West Africa.
The proposed measure, he said, would also strengthen regional connectivity and support broader economic growth across member countries.
Industry stakeholders have consistently argued that reducing the financial burden on airlines is critical to improving the sustainability of the aviation sector.
They maintain that lower taxes and charges would encourage investment, expand route networks and provide travellers with more affordable transportation options.
Experts also believe that a more favourable operating environment would enable airlines to modernise their fleets, improve service delivery and compete more effectively with international carriers.
The latest remarks from IATA add to growing calls for policy reforms aimed at strengthening the aviation sector, which is widely regarded as a strategic driver of trade, tourism, investment and regional integration.
As governments across West Africa seek to boost economic growth and connectivity, pressure is mounting on regulators and policymakers to address longstanding concerns over the cost of doing business in the aviation industry.
For Nigeria, the challenge remains balancing revenue generation with the need to create an enabling environment that allows airlines to thrive, expand operations and contribute more significantly to national development.
With air travel demand expected to rise in the coming years, stakeholders say meaningful reforms will be necessary to ensure that the country’s aviation sector reaches its full potential and remains competitive within the global market
