The Chairman of Air Peace Limited, Dr Allen Onyema, has urged President Bola Ahmed Tinubu to intervene in Nigeria’s ticket charge crisis. Onyema said the intervention could help rescue airlines from mounting financial pressure linked to the 5% Ticket Sales Charge (TSC). He also proposed replacing the percentage-based system with a fixed aviation charge of between ₦5,000 and ₦7,000 per passenger.
Speaking at the 30th annual conference of the League of Airport and Aviation Correspondents (LAAC) in Lagos, Onyema said Nigeria’s aviation sector needs a more predictable revenue system. The conference theme was “Towards a Sustainable Aviation Industry: Balancing Government Revenue Demands with Sector Growth.” He argued that sustainable ticket charges must protect airlines, government agencies and passengers.
Ticket Charge and the 5% TSC Burden
According to Onyema, the existing 5% Ticket Charge places additional pressure on airlines operating in an already expensive environment. The NCAA currently administers the 5% charge on tickets originating from Nigeria. The agency says the revenue is shared with other aviation agencies under the applicable legal framework.
However, Onyema argued that the percentage-based model creates uncertainty for operators. He said the amount payable rises alongside ticket prices, while airlines continue to carry high operating and financing costs. Therefore, he wants the government to consider a fixed amount that airlines can calculate before completing their operations.
“When we talk about the 5% ticket charge, we have been criticising it since time immemorial,” Onyema said. He stressed that airlines are not against funding government agencies responsible for aviation development. Instead, he wants the revenue collection structure reviewed to support both government agencies and financially viable airlines.
“Let me make this clear: the airlines of Nigeria are not against funding development agencies. We support them,” he said.
Onyema Proposes ₦5,000-₦7,000 Flat Charge
The Air Peace Chairman said a flat aviation charge of between ₦5,000 and ₦7,000 per passenger. He said the approach would make ticket charges easier for airlines, agencies and passengers to understand.
“We could even contribute more if you make it a unit rate, a flat rate,” he said. “If you take the average of what you’ve been taking from the airlines, let’s assume it’s ₦5,000, and announce to the flying public that from today, if you’re flying within Nigerian airspace, you pay a fixed aviation development charge.”
“Call it ₦5,000. Call it ₦7,000. Every passenger knows that.”
Onyema said a fixed system would also simplify reconciliation. For example, an airline carrying 100 passengers could immediately determine the amount payable to the relevant agencies. Under the proposed system, a ₦5,000 charge would produce a clear ₦500,000 obligation for 100 passengers.
“When you take off with 100 people, you know exactly what the agencies are entitled to receive,” he said. “If the charge is ₦5,000 per passenger, you multiply it by 100 passengers.”
Tinubu Intervention Could Change Aviation
Onyema said he believes President Tinubu would act if the airlines receive an opportunity to explain the impact of current ticket charges directly. He described the President as a listening leader and recalled the administration’s intervention over the 4% Free on Board (FOB) levy.
According to Onyema, the levy threatened airline viability after its introduction by the Nigeria Customs Service. He recalled meeting Comptroller-General of Customs, Adewale Adeniyi, over the issue before the matter was taken to the Presidency.
“I remember when we complained to the Comptroller General of Customs, Mr Adewale Adeniyi, of the debilitating effects of the newly introduced 4% FOB customs duty on airlines,” Onyema said. “This President acted swiftly and waived it for airlines within hours of being made to understand the would-be effects of such a charge.”
He believes a similar presidential intervention on ticket charge could produce a broader transformation across the aviation sector.
Airlines Need Predictable Costs
The Air Peace Chairman, in his view, also said a predictable ticket charge would make financial planning easier while maintaining a dependable revenue stream for aviation agencies.
Onyema also called for aviation-generated revenue to remain with the agencies responsible for developing the industry. He said adequate funding is essential for airport infrastructure, airspace management and other aviation systems.
Onyema also cited the high mortality rate among Nigerian airlines, saying more than 62 commercial airlines have collapsed or defaulted since independence. He said excessive taxes and charges remain among the structural problems undermining airline sustainability.
He argued that Nigeria must develop a system that supports indigenous carriers instead of increasing their financial exposure. For Onyema, predictable ticket charge would provide a practical starting point for that reform.
He also maintained that resolving the issue could improve Nigeria’s aviation image internationally. Onyema said IATA’s concerns about the country’s airline operating environment should prompt government and industry stakeholders to find solutions.
“The problem is that the President has not heard from us on why his country was so described by IATA,” he said.
“When he does see us, aviation will flourish in this country. It will benefit the agencies, the government, and the flying public.”
