Connect with us

News

New tax laws: FG counters Allen Onyema on economy, aviation sector

Published

on

Please Kindly Share This Story

The Federal Government has countered  claims by the Chairman and Chief Executive Officer of Air Peace, Allen Onyema, that Nigeria’s new tax regime will cripple the aviation industry and trigger a sharp rise in airfares.

In an interview on Sunday, Onyema said the taxes include customs duties on imported aircraft, aircraft parts, and engines, as well as VAT on tickets, adding that they will further burden airlines with additional costs.

He said- “There is VAT now on the importation of aircraft. So if you buy an aircraft of $80 million, you are supposed to pay 7.5 percent of $80 million.

“Do the mathematics. From money borrowed from the bank, interest rates are 30 to 35 percent. So you bring in spare parts, you pay 7.5 percent on your spare parts.”

The Air Peace CEO said the airline industry cannot withstand additional burdens under the new tax laws.

“If we implement that tax reform, Nigerian airlines will go down in three months,” he said.

But reacting to the claims by Onyema, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, on Monday, said the claims were misleading and did not reflect the substance of the reforms.

Oyedele made this rebuttal in a statement he posted on his X handle, saying the reforms were being wrongly portrayed.

He said, “Contrary to the claim that the new tax laws will hurt the industry, the reform is part of the solution, not the source of the problem. Several long-standing tax issues driving costs in the sector have been resolved in the new tax laws or are being structurally addressed.”

Oyedele acknowledged that the aviation sector has long struggled with multiple taxes, levies, and regulatory charges, noting that the committee had engaged extensively with airline operators. However, he stressed that the new laws were designed to reduce costs and improve sustainability.

Also, the spokesperson of the Nigeria Civil Aviation Authority, Michael Achimugu, dismissed assertions that domestic airlines pay as many as 18 different taxes, insisting that any airline making such claims had lied.

On aircraft leasing, Oyedele described the existing 10 per cent withholding tax as the “single biggest tax burden” on airlines. He explained that under the old system, the tax was non-recoverable and directly inflated operating costs.

He said, “On a $50m aircraft lease, an airline currently pays $5m in withholding tax, which comes straight out of cash flow. This burden has now been removed and replaced with a rate to be set by regulation, creating a legal basis for either a full exemption or a significantly lower rate. This is a major structural relief for the sector.”

Addressing VAT concerns, Oyedele said the temporary suspension introduced in 2020 came with hidden costs, as airlines were unable to recover input VAT on certain assets, consumables, and overheads.

“Under the new tax laws, airlines become fully VAT-neutral. Any VAT paid on imported or locally procured assets, consumables, and services will be fully claimable. Where there is excess input VAT, the law mandates a refund within 30 days or allows it to be offset against other tax liabilities. This directly reduces cost pressure and improves liquidity,” he added.

He also dismissed claims that the reforms reintroduced import duties on aircraft and spare parts. “Existing exemptions on commercial aircraft, engines, and spare parts remain fully in place. There is no reversal and no new burden introduced under the reforms,” Oyedele stated.

On ticket prices, Oyedele argued that the projected fare hikes were exaggerated. “Even in a worst-case scenario where VAT is not claimable, the maximum impact is 7.5 per cent, not the astronomical figures being suggested. A ₦350,000 ticket would rise to about ₦376,250, not ₦1.7m.”

He added that the reforms provide a framework to reduce corporate income tax from 30 per cent to 25 per cent and harmonise several profit-based levies, such as Tertiary Education Tax, NASENI, NITDA, and Police levies, into a single Development Levy. “This reduces complexity, improves certainty, and ultimately benefits airlines,” he said.

While admitting that airlines still face multiple levies and charges, Oyedele stressed that these were not created by the new tax laws.

“It is incorrect to attribute these charges to the reform,” he said. “The government is actively working with operators and relevant agencies to achieve a lasting solution. Importantly, the harmonisation provisions mean the situation can only improve, not worsen, from 2026.”

Speaking on multiple taxation, Achimugu said, “Any domestic carrier operating domestic flights that says they are paying 18 taxes is a liar. “No domestic carrier pays 18 taxes for domestic flights.”

He further argued that the recent spike in airfares is driven largely by market forces, particularly demand and supply, especially during the festive season. “We understand that the high airfares this period are down to demand and supply. Even if we assume there are 18 taxes and that those taxes increased recently, why is it different in December?”

He added that given the level of government support extended to domestic airlines, repeated attacks on fiscal policy were unjustified. “With the kind of support domestic carriers have received, I see no reason why the government keeps getting thrown under the bus through statements like this,” Achimugu said.

 

 

 

 

 

 

 

 

 

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Supreme Court to rule on ADC, PDP cases Thursday

Published

on

Please Kindly Share This Story

The Supreme Court of Nigeria will on Thursday, deliver judgments in two cases involving the leadership crises rocking the African Democratic Congress and the Peoples Democratic Party.

According to information on the official website of the court, the matters, listed under “Political Appeals”, have been added to the cause list for Thursday, April 30, 2026.

While judgment in the ADC matter, marked SC/CV/180/2026, has been fixed for 2 pm, there is no time yet for that if the PDP.

 

Continue Reading

News

Tinubu to reconstitute NHRC board, retains Ojukwu as ES/CEO

Published

on

Please Kindly Share This Story

President Bola Tinubu has written the Senate, seeking the screening and subsequent confirmation of fifteen nominees to the National Human Rights Commission (NHRC).

The letter was read by the President of the Senate, Senator Godswill Akpabio.

The letter seeks the reconstitution of the commission’s board in line with statutory provisions with the list comprising nominees from diverse professional backgrounds, including the media and legal sectors.

Among the nominees are the President, Nigeria Guild of Editors and Editor, Vanguard Newspapers, Mr. Eze Anaba; and Dr. Salamatu Hussaina Suleiman, who has been proposed as chairman of the board.

The Executive Secretary of the Commission, Dr. Anthony Ojukwu (SAN) is to retain his position as the Chief Executive Officer.

Other nominees include Mrs Roseline Tasha, Ambassador Adam Yubak Baku, ACG Felix Lawrence, Mr. Edmund Chinonye, Mr. Chinonye Obiaku (SAN), Oluwakemi Asiwaju Okere-Odo, Professor Adedeji Ogunji, Kingsley Chidozie, Mohammed Adelodu, Maupe Ogun Yusuf, and Otunba Francis Meshioye as members.

Also nominated are Patience Patrick and Hawwa Ibrahim, listed as members.

The President said the nominations were made pursuant to Section 2(3) of the National Human Rights Commission (Establishment) Act, 2010, which empowers him to constitute the board subject to Senate confirmation.

He explained that the reconstitution of the board was necessary to enhance the commission’s institutional capacity and enable it to more effectively discharge its mandate to promote and protect human rights across the country.

If confirmed, the new board is expected to play a critical role in reinforcing the NHRC’s oversight functions, particularly at a time of heightened concerns over rights protection and accountability in Nigeria.

Following the presentation of the request, the Senate referred the nominations to its Committee on Judiciary, Human Rights and Legal Matters for screening and report within two weeks.

 

 

 

 

Continue Reading

News

Breaking: EFCC investigates Pastor Jerry Eze over alleged money laundering

Published

on

Please Kindly Share This Story

The Economic and Financial Crimes Commission, EFCC, has revealed that it investigated the founder of Streams of Joy International, Pastor Jerry Eze, for six months over suspected money laundering before clearing him.

Ola Olukoyede, chairman of the Commission, disclosed this on Wednesday while speaking at the Jerry Eze Foundation Business Grant Award Ceremony in Abuja.

According to him, the probe was triggered by intelligence reports and petitions after the commission observed large inflows of foreign currencies into the cleric’s domiciliary account.

“We work by intelligence, we work by petitions. At some point, I saw there was an account, a domiciliary account. Dollars, pounds were dropping in like raindrops, from Colombia, from America, from Sri Lanka, even from Togo.

“I said who is this man? Yes, I’ve been hearing about his name, I’ve seen his face a couple of times. I never bothered about what he was doing. I knew he was a pastor.

“So they said this one pastor of streams of joy, go and investigate him. So we went to the investigation. We combed the books,” Olukoyede stated.

The EFCC boss said he subsequently invited Eze for questioning after preliminary findings were compiled by investigators.

He added that upon meeting the cleric and reviewing the findings of the investigation, the commission found no wrongdoing.

“So he came to my office. He told me what happens and all of that, and how the money came, what he does, how he has been helping people, and all of that.

“I said, you know what, I didn’t call you here to explain to me. We have already done our work. I called you here to commend you,” he stated.

The remark drew applause from the audience, as Eze, who was present at the event, acknowledged the commendation.

He noted that the commission has a responsibility not only to investigate financial crimes but also to recognise individuals found to have acted with integrity.

The EFCC chairman, however, stated that the agency would continue to monitor financial activities where necessary, stressing that its preventive mandate remains critical in tackling corruption.

 

Continue Reading

Trending