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- The FG has given reasons why some foreign airlines favour other countries over Nigeria
- It attributed this to the burden of multiple agencies, complex paperwork, and many taxes and levies
- Lagos and Abuja airports are ranked as the most expensive in the world by IATA
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
The federal government has explained why some airlines prefer neighbouring countries over Nigeria.
Source: Getty Images
This followed an earlier report that Foreign airlines operating in Nigeria are considering exiting the country over trapped revenue.
The Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, at the Business Breakfast Meeting organised by the Aviation Round Table Initiative (ARTI).
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The event was titled “Nigerian Aviation Sector Charges, Duties & Tariffs: Truly Exorbitant.”
Carriers prefer to fly empty
According to Oyedele, reports indicated that carriers prefer to fly empty outbound cargo planes instead of paying hefty fees to load products from Nigeria into other nations.
He also mentioned how some airlines now choose to fly into neighbouring countries due to the high cost of overnight parking.
He demanded that the weight of several agencies, intricate paperwork, and abundant taxes and levies be addressed to maintain local and global competitiveness.
The tax committee chairman also stated that Nigeria cannot hope to be competitive while entangling companies in demanding procedures.
He added that the nation should stop taxing seeds and instead create an atmosphere that supports companies so they may prosper and produce goods that we can tax.
Most expensive airports in the world
Oyedele voiced his displeasure with the Lagos and Abuja airports being ranked as the most expensive in the world by the International Air Transport Association (IATA).
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He said:
“Recent revelations from IATA rank our Lagos and Abuja airports as the two most expensive in the world, no thanks to the endless levies, taxes, and fees. Whether or not this assertion is accurate, the mere perception of it is detrimental and demands our urgent attention.
“Equally, a recent news report credited to FAAN indicated that at least 15 airports in Nigeria are not viable. Sadly, beyond the huge capital outlay, we also need to maintain these airports and airstrips at huge costs despite our lean resources.”
According to him, this puts excessive strain on the few operating airports, especially in Lagos and Abuja, and maybe a factor in the numerous taxes and levies.
He claims that to overcome these obstacles, one must abandon the thinking that gave rise to them in the first place.
Emirates, other foreign airlines speak on $700 million trapped in Nigeria
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Legit.ng reported that foreign airlines have said that about 90% of their $783 million trapped funds in Nigeria remain unpaid.
The airlines recently revealed this at a stakeholders’ forum convened by the minister of aviation and aerospace development, Festus Keyamo, in Lagos.
Data from the International Air Transport Association (IATA) revealed that as of August 2023, Nigeria owes about $783 million of block funds belonging to airlines.
Source: Legit.ng
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