FG begins review of multiple aviation taxes - Keyamo

Minister of Aviation and Aerospace Development, Festus Keyamo, has acknowledged consistent concerns by the country's airline operators over multiple taxation in the sector, saying Federal Government has commenced a review.

Keyamo said the move was also in compliance with a directive by the Economic Community of West African States, ECOWAS, aimed at reducing the financial burden on airlines and lowering air fares.

He told newsmen at the two-day Nigerian Aircraft Acquisition and Investment Summit, NAAIS, organised by the Ministry of Aviation and Aerospace Development in Lagos.

During the 2023 ECOWAS Summit in Abuja, Heads of State in West Africa instructed transport and finance ministers in their respective countries to address the issue of taxes in the aviation sector.

As a result, ECOWAS implemented a supplementary act in December 2024, which mandated member states eliminate air transport taxes and reduce aviation charges by 25 per cent starting in January 1, 2026, to reduce the high costs of flights in West Africa, which had been a barrier to trade, tourism and economic growth across the region.

Speaking at NAAIS, Keyamo said: “We feel the pains of the airlines regarding multiple taxes and all of that. However, you know I am not the owner of Nigeria, so I have no powers to unilaterally remove some taxes. It has to be a multi-agency cooperation, and so we are dealing with the tax authorities, the National Assembly.

“We are working to see which one we can retain, which one we can remove. Also, ECOWAS, as a body, has given us (all the ECOWAS countries) marching orders to go and reduce taxes for the airlines so that it would translate to lower fares for passengers. We are working from all directions in this respect.”