Nigeria’s fragile aviation sector is facing renewed pressure as operators and experts caution that escalating airport and ticket-related charges could push struggling airlines and service providers closer to collapse.
Industry stakeholders argue that the growing burden of levies, fees, and embedded ticket charges is compounding operational challenges in a sector already grappling with high fuel costs, foreign exchange volatility, and infrastructure deficits.
Former Commandant of Murtala Muhammed International Airport, Grp. Capt. John Ojikutu (retd), warned that new charges introduced by the Federal Airports Authority of Nigeria (FAAN) could shorten the lifespan of many aviation businesses. He estimated that based on 2024 traffic figures, revenues from passenger service charges, landing, and parking fees alone should generate no less than ₦400 billion annually, excluding cargo, car parks, toll gates, land leases, and concessions. He questioned whether current income is being efficiently deployed to address critical safety and security gaps, citing inadequate perimeter fencing and weak internal controls.
Ojikutu also criticised recent capital expenditure figures of ₦712 billion for the reconstruction of MMIA Terminal One and ₦535 billion for Abuja’s second runway, describing them as excessive compared to earlier estimates. He recommended concessioning non-aeronautical services, transferring runway management to the Nigerian Airspace Management Agency, and restructuring FAAN into a holding company model to reduce overlaps with the Nigeria Civil Aviation Authority.
Echoing similar concerns, Dr. Alex Nwuba, President of the Aircraft Owners and Pilots Association of Nigeria, condemned non-transparent passenger and cargo-related charges embedded in airfares. He cited the 5% Ticket Sales Charge, VAT on domestic tickets, and multiple security levies as cumulative burdens inflating ticket prices. Nwuba argued that under ICAO principles, aviation charges must be directly linked to the cost of specific services, warning that without transparency, fees risk becoming indirect taxation.
He referenced a recent ECOWAS resolution aimed at curbing non-cost-based aviation charges across the sub-region from January 2026 but expressed scepticism about enforcement, given past implementation challenges.
Analysts say the dispute reflects deeper tensions in Nigeria’s aviation ecosystem: balancing revenue generation for infrastructure with the financial sustainability of operators. As passenger traffic gradually recovers, stakeholders warn that excessive and poorly justified charges could undermine competitiveness, discourage investment, and limit regional connectivity.
Observers stress that transparent pricing structures and regulatory clarity will be critical to restoring confidence and ensuring long-term stability in a sector seen as vital to trade, tourism, and economic integration.
By Juliet Ezeh, Abuja
