Minister of Aviation and Aerospace Development Festus Keyamo says a decision on revising aviation taxes must come from a coordinated government process involving several ministries and the National Assembly.
He spoke in Abuja on Monday at an event marking 100 years of aviation in Nigeria. He said concerns raised by airlines about multiple taxation are part of broader policy issues that extend beyond the authority of the aviation ministry.
Keyamo said tax issues fall under the responsibilities of the Ministry of Finance, the Federal Inland Revenue Service and other revenue bodies. He said these agencies must take part in any discussion about removing or modifying statutory levies in the aviation sector.
According to him, the aviation minister does not have the power to suspend or alter taxes that are already captured in law. He said changes to such levies require legislative action and full government agreement.
He said President Bola Tinubu has shown interest in easing tax pressure on the sector. He said the president recently exempted aviation from a four per cent tax that was scheduled to take effect before it was withdrawn.
Keyamo said a committee set up by the president is reviewing the issue of multiple taxation. He said the committee is expected to study all existing charges affecting airline operations and make recommendations.
He said infrastructure remains the most significant barrier to aviation growth. He said major airports lack hub systems that allow for seamless international transfers, which limits the capacity of Nigerian airlines to compete on long-haul routes.
He said the absence of modern transit facilities forces inbound passengers to complete immigration procedures even when they intend to connect to another flight. He said airlines cannot expand their route networks without investments in airport upgrades.
Keyamo said Air Peace and other domestic carriers can expand international services if hubs are developed. He said airlines need efficient transfer facilities to operate connecting routes and increase passenger volumes.
He said access to credit and aircraft leasing is another challenge for operators. He said airlines need financing to acquire aircraft and maintain fleet operations, adding that market demand is not the problem.
The minister spoke against the background of the federal government’s new tax reform law, which consolidates several tax statutes into a unified framework aimed at restructuring revenue administration.
Industry groups have raised concerns about the removal of certain exemptions that previously applied to airline operations. The exemptions include duties on aircraft parts, VAT on air tickets and specific service charges.
The review committee is expected to consult with operators, agencies and lawmakers as it examines the concerns and determines possible adjustments to the current tax framework.
