The Chairman of the Airline Operators of Nigeria (AON), Dr. Allen Onyema, has issued a stark warning that Nigeria’s domestic aviation industry is teetering on the brink of collapse, with many carriers facing possible extinction unless urgent government intervention is implemented within the next month.
Speaking at the Lagos launch of Pathways, Pilgrimage & Destiny: The Biography of Alhaji Muneer Bankole—the founder of Med-View Airline—Onyema painted a grim picture of an industry under siege.
“Going into aviation is not a piece of cake. It is an industry that is not very rewarding. It is capital-intensive, yet less rewarding. Today, we are facing a phase that poses existential threats. Except something drastic is done very quickly within the next 30 days, a lot of airlines might go extinct,” he said.
Unions’ Planned Picketing Draws Strong Reaction
Onyema also criticized the proposed picketing of airlines by aviation unions over the non-remittance of the five percent Ticket Sales Charge (TSC), warning that such action could trigger a wider disruption across domestic air travel.
“If they picket any airline, others will go because there’s no need for that. There is nowhere in the world that government agencies use unions to talk about issues of debt,” he said.
The five percent TSC is a statutory charge collected by the Nigerian Civil Aviation Authority (NCAA) on tickets originating from Nigeria and shared with other aviation agencies. The NCAA has acknowledged challenges surrounding timely remittance and has previously proposed advance payment guarantees to ensure compliance—a requirement later deferred for 90 days.
Financial Pressures Mount
Onyema argued that airlines are not opposed to helping government generate revenue, but the industry’s financial burdens must be addressed through a broader review of government charges and the operating environment.
“The airlines are not against helping the government generate revenue. But no airline in the world is taxed directly for revenue. The airlines indirectly provide revenue for the government,” he said.
Beyond the TSC dispute, Onyema cited the capital-intensive nature of airline operations, the high costs of aircraft maintenance, and daily operating expenses as compounding pressures. He noted that more than 50 airlines had exited the Nigerian market over the years—a clear indication of the industry’s long-standing financial difficulties.
Calls for Urgent Review
In recent months, Onyema has repeatedly raised the alarm over the rising cost of aviation fuel, foreign exchange challenges, aircraft maintenance expenses, and financing costs. He previously disclosed that airlines were borrowing from banks to purchase aviation fuel and reducing flight frequencies to limit losses. He has also called for a review of aviation taxes and charges, particularly the five percent TSC.
“Everybody pities Nigerian airlines, yet nobody wants to do anything about their situation,” he lamented.
A History of Collapse
AON has previously cited the collapse of more than 50 Nigerian airlines over a three-decade period as evidence of the industry’s long-standing financial difficulties. Onyema’s latest warning adds to growing calls by airline operators for the government to review the financial and regulatory environment in which domestic carriers operate.
