The Chairman, United Nigeria Airlines, UNA, Prof. Obiora Okonkwo, has called on the federal government to intervene in the aviation sector to address the numerous challenges facing the industry.
In an interview on TV, Okonkwo emphasized the need for the government to moderate the over 20 taxes paid on every air ticket and to reign in the astronomical rise in the foreign exchange regime.
According to Prof. Okonkwo, the multiple taxation and high forex regime are major obstacles to the growth of the aviation sector, leading to increased ticket prices and making it difficult for local airlines to operate profitably.
According to him, the current forex regime, which stands at N1,605.00 to one dollar, is forcing airlines to buy spares and fix their aircraft in dollars, even without increases in the cost of such spares abroad.
Highlighting the need for the government to review the taxes on each air ticket, as some of them are repetitions.
He pointed out that for every ticket sold, airlines pay about 20 to 22 deductions, which is unsustainable.
While appealing to government to provide a single-digit capital for the aviation sector, the UNA chief called for reduced charges and taxes that impact negatively on air travel business, and create an enabling environment for the sector to thrive.
Prof. Okonkwo also expressed concern that the government is deriving a lot of revenue from the aviation sector without reinvesting it to provide the necessary facilities and support to boost the sector.
He noted that the Nigeria Civil Aviation Authority (NCAA), which is an agency under the aviation ministry, is the fourth largest contributor of revenue to government, and that this money is coming from the profit that operators would have retained and reinvested in growing their businesses.
Prof. Okonkwo emphasized that the government’s failure to invest adequately in the aviation sector is not healthy for the industry and the country.
He urged the government to show more interest in supporting the growth of the aviation sector, as investment in the sector is a win-win for government, adding that, the government can recoup its investment in the sector and facilitate other businesses across the economy.
Despite the challenges facing the industry, Okonkwo praised airline operators in Nigeria for their resilience and patriotism, nothing that the operators are weathering the storm and are committed to helping propel Nigeria’s economic development.
He lauded the leadership of the NCAA for ensuring high safety standards in the industry, stressing that Nigeria has one of the strongest aviation regulatory agencies and best safety records in the world, and that the agency is more regulated than most countries in the western world.
