High charges eating 35% of Airline revenue, CPPE warns FG

The Centre for the Promotion of Private Enterprise (CPPE) has raised concern over the rising cost of doing business in Nigeria’s aviation sector with a warning that multiple charges are taking up to 35 per cent of airline revenue.

In a policy brief released on Monday, the Centre said the current cost structure is putting serious pressure on domestic airlines and could threaten their survival if not addressed.

The Director of CPPE, Muda Yusuf, noted that although recent government support has helped operators, deeper reforms are needed to fix long-standing problems in the sector.

READ RELATED NEWS

Tinubu slashes domestic airlines’ debt by 30%

He commended President Bola Tinubu for approving a 30 per cent discount on debts owed by local airlines, describing the move as timely relief. He also praised the Minister of Aviation, Festus Keyamo, for engaging industry stakeholders.

However, Yusuf said the debt relief only offers short-term support and does not solve the main issue, which is the high cost of operations.

According to him, airlines are burdened by several charges imposed by agencies such as the Nigeria Civil Aviation Authority (NCAA), Federal Airports Authority of Nigeria (FAAN), and Nigerian Airspace Management Agency (NAMA).

He listed these costs to include ticket and cargo charges, passenger service fees, landing and parking fees, aircraft inspection charges, and fuel-related costs, among others. He added that import duties on aircraft and spare parts also increase the financial burden on operators.

Yusuf explained that these multiple charges reduce airline earnings and make it difficult for them to remain profitable in a sector already known for low margins.

He stressed that aviation remains critical to Nigeria’s economy, especially as many travellers now prefer flying due to growing insecurity on the roads. Despite this, he said the sector continues to witness frequent airline failures because of the harsh operating environment.

The CPPE, therefore, urged the Federal Government to carry out a full review of aviation charges and reduce the number of fees imposed on airlines.

Yusuf said a simpler and lower cost structure would help airlines stay in business, improve service quality, and reduce ticket prices for passengers.

He warned that continued financial pressure on operators could also affect safety standards if not properly managed.

The Centre maintained that real support for the aviation sector must go beyond debt relief and focus on creating a more stable and business-friendly environment for airlines.

For More Details, Visit New Daily Prime