IATA Says Nigeria Remains One of the World’s Most Expensive Countries for Airline Operations
The International Air Transport Association (IATA) has described Nigeria as one of the most expensive countries in the world for airline operations, warning that the high cost of doing business continues to pose a major obstacle to the growth and profitability of carriers operating in the country.
The disclosure was made by IATA’s Regional Vice President for Africa and the Middle East, Kamil Al-Awadhi, during the association’s Annual General Meeting in Brazil, where he highlighted the challenges confronting airlines across Africa and the Middle East.
Al-Awadhi acknowledged the efforts being made by Nigeria’s Minister of Aviation and Aerospace Development, Festus Keyamo, to introduce reforms and improve conditions within the sector.
Despite those efforts, he noted that operators in Nigeria are still burdened by some of the highest costs in the global aviation industry.
According to him, the operating environment in Nigeria has become increasingly difficult for airlines, making it challenging for them to achieve profitability and remain competitive in both regional and international markets.
He said the prevailing cost structure is preventing the industry from realising its full potential and limiting opportunities for expansion.
The IATA executive observed that excessive taxes, numerous charges and other operating expenses continue to weigh heavily on airlines throughout the region, with Nigeria standing out as one of the most expensive markets from a cost perspective.
He stressed that reducing the financial burden on airlines would be critical to ensuring the sustainability of the industry and enhancing connectivity within West Africa.
In that regard, he called on member countries of the Economic Community of West African States (ECOWAS) to implement the proposed 25 per cent reduction in aviation-related taxes and charges.
Al-Awadhi said such a measure would contribute to lowering airfares, increasing passenger demand and strengthening the competitiveness of airlines operating within the sub-region.
He added that a more affordable and efficient aviation sector would ultimately stimulate trade, tourism and economic activities across West Africa.
The call comes amid longstanding concerns by airline operators and aviation stakeholders over the rising cost of operations in Nigeria.
Industry players have repeatedly complained that multiple taxes, regulatory charges, foreign exchange constraints and the high cost of aviation fuel have made it increasingly difficult for carriers to survive.
Stakeholders have consistently argued that reducing taxes and levies is one of the most effective ways to make air travel more accessible to the travelling public while promoting greater connectivity among countries in the region.
Observers believe that improving the operating environment for airlines will be vital to unlocking the economic benefits associated with air transport, including job creation, investment and increased regional integration.
The latest intervention by IATA is expected to intensify calls for governments across West Africa to adopt policies that will make the aviation industry more competitive and sustainable.
Analysts maintain that with air transport serving as a critical enabler of commerce and tourism, creating a more favourable environment for airlines has become imperative for the region’s economic development and integration agenda.
