News
New tax laws: FG counters Allen Onyema on economy, aviation sector
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.
News
NDC disowns presidential campaign council unveiled by OK Movement
The leadership of Nigeria Democratic Congress, NDC, has disowned the Presidential Campaign Council, PCC, set up by the OK Movement ahead of the 2027 general elections.
This is contained in a statement signed by the party’s National Chairman, Cleopas Moses, on Saturday.
Moses stated that the announcement made by one John Ugulu was not authorised and did not come from the party.
According to him, going forward, no individual or group is authorised to announce, constitute or publish any campaign structure or organ in the name of the party without the approval of the party’s National Working Committee, NWC.
The statement partly read: “The leadership of our party, the Nigerian Democratic Congress, NDC, has noted with concern a publication credited to one John Ugulu, announcing a Presidential Campaign Council, PCC, under the guise of the OK Movement.
“For the avoidance of doubt, the party wishes to state categorically as follows: The party hereby dissociates itself in totality from the said OK Movement PCC announcement. It did not emanate from the party and should be disregarded by the public and the media.
“All candidates of the party must appreciate that they are not running as independent candidates. They are products of the party and remain subject to the authority and discipline of the party. Therefore, only the party’s leadership can constitute and announce a PCC.
“No member, candidate or support group should, under any guise, undermine the party or demarcate the party. The party recognises and deeply appreciates the contribution of all support groups and encourages their continued support. We welcome even more support groups who identify with our mission to rescue Nigeria.
“While the party will continue to work collaboratively with all support groups, such groups should not see themselves as alternative party structures or parallel organs of the party.”
News
25 dead bodies recovered as families remain uncertain over fate of 500 residents abducted from Niger communities
25 decomposing bodies belonging to victims of a mass abduction that took place in four communities in Niger state have been recovered.
They were part of residents that were abducted by terrorists Dekara, Kpenya, Sabon-Gida and Gidan-Zana in Borgu Local Government Area.
The bodies were recovered after the communities were reportedly alerted on Monday by the abductors to come and identify and retrieve the bodies.
The victims were said to be among about 500 worshippers abducted after Friday Jumm’at prayers on August 21, 2026.
25 bodies were recovered and later given a mass burial in a nearby bush.
The reported killings have heightened anxiety among families whose relatives remain in captivity, with residents saying they are increasingly uncertain about the fate of the remaining abductees.
A source said the abductors allegedly warned that more captives could be killed if their ransom demands were not met.
“They first asked each family to bring N10 million for each captive, but later reduced it to N5 million. There is no way we can afford it,” he said.
News
Democracy: NHRC calls for people-centered policies, robust debate, respect for human rights, dignity
Ahead of the 2027 general election, the National Human Rights Commission (NHRC), has urged authorities and policy makers to prioritize rights of citizens and respect for human dignity over and above the quest to win election and occupy leadership position,
The Executive Secretary of the Commission, Chief Tony Ojukwu, SAN, made the call on Wednesday, as Nigeria joins the rest of the world to commemorate the 2026 International Day of Democracy.
Ojukwu said the day reminds us that democracy is not just about elections, but about the dignity, voice, and rights of every citizen.
He stated that democracy represents the freedom to speak, to choose, to participate, and to hold power accountable without fear; and called on all politicians, political parties and their supporters to exercise restraint and responsibility in public utterances.
He further stressed that democracy thrives on debate, not on hate speech, inciting statements, ethnic profiling, or threats.
A statement by Hajia Fatimah Agwai Mohammed, Director Corporate Affairs and External Linkages at the Commission, quoted Ojukwu to have reiterated that words can build peace or destroy the nation, and urged the political class to make campaigns issue-based and shun any language capable of inciting violence or undermining national unity.
The Chief Human Rights Officer of the country noted that the Commission will continue to monitor hate speech and electoral violence. He called on every eligible Nigerian to rise above voter apathy and actively exercise their civic rights, adding that citizens should not stay away from the polls, sell votes, or believe that votes do not count as these emanate from voter apathy.
Chief Ojukwu lamented that democracy dies when citizens withdraw, and remain silent, he emphasized that the Permanent Voter’s Card remains the power of the people to choose desired leaders.
He therefore urged citizens to come out, vote, and make votes count, describing the choice of leaders as both a right and a duty to Nigeria.
The Executive Secretary who is also the President of the Network of National Human Rights Institutions in West Africa (NNHRI-WA) called on the Federal Government, the Independent National Electoral Commission, and all security agencies to ensure a level playing field for all.
He further stated that government must guarantee the safety of voters, journalists, observers, human rights defenders and the citizens at large.
“Anyone regardless of status or party affiliation, who attempts to make the polity unbearable, who sponsors violence, vote-buying, voter suppression, or attacks on democratic institutions ahead of the 2027 General Elections, must be promptly investigated and prosecuted in accordance with the law, adding that impunity remains the greatest threat to democracy.
In conclusion, Chief Ojukwu called for commitment to a democracy that delivers not just elections, but justice, equality, and human rights for all.
-
News2 years agoSenate to speed up conclusion of Nigeria Forest Security Service Bill
-
News1 year agoThe Many Lies Against Bashir Haske
-
News3 years agoBreaking: Tinubu’s authentic ministerial nominees
-
News3 years ago“Anytime we want to kill terrorists, President would ask us to take permission from France but they were killing our soldiers-” Niger Republic coup leader
-
News3 years ago“I’m leaving the Catholic church because Bishop Onah is oppressing me,” says Okunerere
-
News3 years agoMy nude photo leak was a mistake- lawyer Ifunanya
-
News3 years agoRadio Nigeria’s veteran broadcaster Kelvin Ugwu dies three months after retirement from service
-
News4 months agoSee your state governor’s performance ranking
