Nigeria’s new tax reforms, designed to boost government revenue and improve compliance, are facing significant opposition from the aviation sector, which warns the changes could severely damage the industry.
At a recent aviation webinar which occurred yesterday, 14th of September 2025, the Federal Inland Revenue Service (FIRS) outlined the benefits of the Finance Act 2023.
Assistant Director Mrs. Nkechi Umegakwe stated the reforms aim to enhance the ease of doing business, align with global standards, and strengthen revenue generation for the Tinubu administration. She specifically noted that the law considers the aviation sector’s fragility and is designed to avoid severely impacting air travel.
However, airline operators and industry experts at the event expressed strong concerns. They warned that provisions reintroducing Value Added Tax (VAT) on aircraft, spare parts, and tickets scheduled for implementation in January 2026 constitute double taxation and violate International Civil Aviation Organisation (ICAO) standards.
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Industry leaders, including Landover Company Limited’s Capt Edward Boyo and IATA’s Dr. Samson Fatokun, cautioned that the new taxes would lead to increased ticket prices, reduced passenger traffic, job losses, and further strain on an industry already facing high operational costs.
They appealed to President Tinubu and the FIRS to review the reforms, place aviation on a priority exemption list, and honor existing international agreements that protect air transport from such levies.
The consensus among operators was clear: while recognizing the government’s need for revenue, they urged further engagement to address provisions they believe will cripple a sector vital to Nigeria’s economic growth.
