Nigeria’s aviation industry is under increasing strain as taxes, fees, and regulatory charges now account for as much as 35% of airline revenues, according to the Centre for the Promotion of Private Enterprise, which says the situation is threatening the viability of domestic carriers.

In a statement signed by its Chief Executive Officer, Muda Yusuf, the CPPE said the existing cost framework imposed by aviation regulators has become overly burdensome, significantly pushing up operating expenses in a sector already marked by slim profit margins.

The advocacy group noted that levies from agencies including the Nigerian Civil Aviation Authority, the Federal Airports Authority of Nigeria, and Nigerian Airspace Management Agency have created a difficult operating environment for domestic airlines.

The CPPE said that the combined effect of ticket sales charges, cargo fees, passenger service charges, landing and parking fees, inspection levies, as well as import duties on aircraft and spare parts, has substantially reduced airline profitability and undermined the sector’s overall resilience.

It argued that the aviation industry is too critical to be burdened by an unsustainable cost structure, particularly at a time when air travel has become increasingly essential due to rising security challenges on major highways.

“Industry estimates suggest that these charges collectively account for as much as 35% of airline revenues, a level that is clearly incompatible with the thin margins typical of the aviation business.

“Nigeria’s aviation sector is too strategic to be weighed down by such cost pressures. It is central to economic connectivity, trade facilitation, investment flows, business mobility and national integration.

“Reducing both the multiplicity and magnitude of these charges will significantly enhance the viability, competitiveness and resilience of domestic airlines,” Yusuf said.

The CPPE further warned that sustained financial pressure on operators could undermine service quality, push up airfares, and in extreme cases create safety risks if airlines are compelled to cut costs in critical areas.

Nigeria’s aviation sector has long grappled with high operating costs, frequent airline collapses, and limited access to long-term financing—challenges that have been worsened by rising jet fuel prices and foreign exchange instability.

Jet A1 aviation fuel in particular remains a major cost driver for airlines, continuing to place significant upward pressure on overall operating expenses across the industry.