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The International Air Transport Association (IATA) has called on the National Assembly of Nigeria to take urgent legislative action to safeguard the survival of Nigeria’s airlines, warning that operators are grappling with razor-thin margins amid rising costs.
Speaking in Ibadan at the 50th Annual General Meeting of the National Association of Nigeria Travel Agencies, IATA’s Area Manager for West and Central Africa, Dr. Samson Fatokun, stressed that without deliberate policy support, local carriers may struggle to remain viable.
He noted that aviation contributes roughly $2.5 billion—about 0.7 percent—to Nigeria’s GDP, but sustaining and growing that figure would require targeted interventions from lawmakers, particularly in easing the regulatory and cost burdens on airlines.
Fatokun highlighted a series of structural challenges facing African carriers. Jet A1 fuel costs on the continent are about 17 percent higher than global averages, while taxes, charges, and fees exceed global benchmarks by 12 to 15 percent. Air navigation services also cost about 10 percent more, with additional pressures from elevated aircraft maintenance, insurance, and financing expenses.
Compounding the situation, African governments are currently withholding an estimated $954 million in airline revenues, further tightening liquidity across the sector. According to him, these factors collectively drive up ticket prices and weaken the competitiveness of African airlines.
He also pointed to geopolitical tensions in the Middle East—particularly the Israel, United States, and Iran conflict—as a factor disrupting global aviation forecasts for 2026, reinforcing the need for strong government backing.
“The operating environment is extremely tight. Without support, airlines will continue to struggle under very thin profit margins,” he said.
Meanwhile, Chairman of the Senate Committee on Aviation, Abdulfatai Buhari, urged NANTA to formally present its concerns to the National Assembly, assuring stakeholders of legislative attention.
Buhari also criticized certain foreign carriers—including Delta Air Lines, United Airlines, and Emirates—for insisting on dollar-denominated ticket sales in Nigeria. He argued that such practices undermine the local economy and should be addressed through regulatory measures.
“No airline operates in another country and refuses to transact in local currency. This is something we must confront,” he said.
Earlier, NANTA President, Dr. Yinka Folami, pledged that the association would intensify efforts to eliminate touting and restore professionalism within the travel trade segment, emphasizing the need for collective discipline across the industry.
