Calls Grow for Lasting Fiscal Solutions to Boost Nigeria’s Aviation Sector
At a recent industry retreat in Lagos, Mr. Joseph Atile, Assistant Comptroller of the Nigeria Customs Service (NCS) Tariff and Trade Department, delivered a pointed message to Nigeria’s aviation stakeholders: the sector’s persistent fiscal and tax challenges demand more than temporary waivers or short-lived relief measures. Instead, he advocated for a comprehensive, structured approach that would provide enduring support and stability for Nigerian airlines, even as governments change and economic conditions fluctuate.
During a panel session at the NCAA Cost Recovery Optimization Stakeholders’ Retreat, Atile underscored the limitations of relying on ad hoc tax and VAT waivers. He argued that while such measures may offer short-term respite, they fall short of delivering the predictability and sustainability that the aviation industry urgently needs. “Short-term waivers cannot guarantee stability or sustainability for the aviation sector,” Atile emphasized, urging the industry to look beyond quick fixes and instead pursue reforms that would stand the test of time.
He called on aviation stakeholders to channel their efforts into legislative and policy reforms that would embed consistent support for the sector within Nigeria’s legal and regulatory framework. According to Atile, the current practice of seeking waivers exposes airlines to the risk of abrupt policy reversals whenever there is a change in administration. This uncertainty, he warned, undermines long-term planning and investment, making it difficult for airlines to operate efficiently or attract international partners.
To address these vulnerabilities, Atile proposed the establishment of a dedicated aviation support fund or similar financing mechanism. Such a fund, he suggested, could serve as a buffer against recurring financial shocks, providing airlines with the stability they need to weather economic downturns, currency fluctuations, and other external pressures. This approach, he argued, would be far more effective than piecemeal waivers, which often fail to address the root causes of the sector’s fiscal challenges.
Atile also reminded the audience that taxes are a necessary obligation for all businesses, including airlines. He stressed that operators must comply with the legal framework governing customs duties and import procedures, which are designed to ensure fairness and transparency in the sector. Using the example of aircraft leasing, he explained that while certain equipment may qualify for a “zero-duty” rate under specific conditions, these exemptions are strictly regulated and require proper bonding arrangements. “These conditions are standard practice globally and not unique to Nigeria,” Atile clarified, adding that once all legal processes are followed and verified, the bonds covering such transactions are discharged accordingly.
His remarks highlighted the importance of aligning Nigeria’s aviation tax regime with international best practices, ensuring that the country remains an attractive destination for investment and partnership. Atile’s perspective reflects the broader mandate of the Nigeria Customs Service, which is tasked with implementing government trade and fiscal policies, protecting the nation’s interests, and facilitating legitimate commerce through transparent and professional administration .
Throughout his address, Atile reiterated the NCS’s readiness to collaborate with industry stakeholders and relevant government agencies. He emphasized the need for a fair, transparent, and sustainable tax environment that supports the growth of the aviation sector while safeguarding public revenue. This collaborative approach, he argued, is essential for building a resilient industry capable of adapting to changing market dynamics and regulatory requirements.
The issues raised by Atile resonate strongly with Africa’s wider aviation community, where similar challenges are often encountered. Across the continent, airlines grapple with high operating costs, fluctuating exchange rates, and inconsistent policy environments. For African travel professionals, the Nigerian experience serves as a timely reminder of the need for proactive engagement with policymakers and a commitment to long-term solutions that transcend political cycles.
As Nigeria’s aviation sector seeks to recover from recent global disruptions and position itself for future growth, the call for structured fiscal reforms is likely to gain momentum. Stakeholders are increasingly aware that sustainable progress depends on more than temporary relief; it requires a stable, predictable framework that encourages investment, innovation, and operational excellence.
For those in the African travel industry, the message is clear: the future of aviation hinges on the ability to forge lasting partnerships between government and the private sector, grounded in mutual trust and a shared vision for growth. By championing comprehensive reforms and embracing global best practices, Nigeria—and the continent as a whole—can unlock new opportunities, strengthen its aviation infrastructure, and ensure that its skies remain open for business in the years ahead.
