By Chibuzor Alli
Air Peace chairman Allen Onyema has called on President Bola Tinubu to intervene in the lingering five per cent Ticket Sales Charge (TSC) dispute, saying presidential action could ease the financial pressure on Nigerian airlines and improve the country’s prospects as a destination for airline investment.
Onyema, who is also vice-president of the Airline Operators of Nigeria (AON), said the high cost of operating airlines in Nigeria, driven by multiple taxes, levies and charges, had contributed significantly to the high mortality rate of indigenous carriers.
He made the call in Lagos on Thursday in an interview with aviation journalists.
Onyema said the current arrangement, under which airlines remit 5% of the value of every ticket sold as TSC, was fiscally burdensome and undermined the ability of operators to remain viable.
He proposed replacing the percentage-based system with a fixed flat-rate charge on tickets, saying this would make the levy more predictable for airlines while allowing the Nigeria Civil Aviation Authority (NCAA) and other aviation agencies to continue generating revenue.
Tinubu urged to intervene in Ticket Sales Charge dispute
He said: “One thing I must say is that I’m certain any day President Bola Ahmed Tinubu sees us, if they allow us to see him, because I know he will not mind to meet with us, that will be the day a new revolution in the airline industry in this country will occur.
“Mr President abhors anything capable of affecting indigenous businesses that provide jobs for the people adversely.”
The Air Peace chairman recalled the controversy surrounding the 4% Free on Board (FOB) levy introduced by the Nigeria Customs Service, saying President Tinubu swiftly intervened after being informed of its potential impact on local airlines.
Onyema said he was at the Presidential Villa with the Comptroller-General of Customs, Adewale Adeniyi, when the issue was presented to the president, who subsequently granted an exemption to airlines.
According to him, the experience demonstrated the impact of presidential intervention when the government was made to understand the consequences of policies on businesses.
Onyema said the intervention subsequently enabled Air Peace to embark on a massive employment drive following his pledge to create 1,000 jobs for Nigerians.
He disclosed that about 78,000 Nigerians applied for the positions, out of which 1,000 young Nigerians were eventually employed.
Airlines seek relief from rising operating costs
The airline executive maintained that a similar intervention was urgently required to resolve the five per cent TSC controversy and other fiscal burdens confronting the sector.
Onyema said the president was yet to hear directly from airline operators about the circumstances behind the International Air Transport Association’s (IATA) description of Nigeria as one of the most difficult places in the world to operate an airline.
He said Nigeria could not develop a sustainable aviation industry when local carriers were subjected to numerous taxes, levies and charges that increased their operating costs and weakened their competitiveness.
Onyema stressed that the objective should not be merely to increase government revenue but to create an environment in which airlines could survive, expand their fleets, employ more Nigerians and contribute more sustainably to the economy.
He also cited industry reports indicating that more than 60 commercial airlines had collapsed or ceased operations in Nigeria since independence, with more than 20 reportedly shutting down within the past 24 years.
He warned that the trend would continue unless the government reviewed the industry’s cost structure.
Onyema urged the government to adopt a more balanced approach to revenue generation, arguing that stronger and healthier airlines would ultimately generate more revenue for government agencies than a system that continually pushes operators towards financial distress.
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