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N1million domestic flight: You’re raising false alarm Oyedele chides Onyema
Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, on Monday, pooh-poohed the contention that the new tax laws would hurt Nigeria’s aviation industry more than it would help it, stating that the new regime would actually reduce costs of doing business in the sector.
Against the backdrop of the lamentation of Allen Onyema, Chairman of Air Peace, one of Nigeria’s frontline airlines the coming of the new tax laws, expected to commence on January 1 that the development would be so devastating that airfares for domestic flights could hit more than ₦1 million, Oyedele, poured cold water on such fears.
Using his X account, he said concerns raised the airline’s boss while appearing on ARISE NEWS interview on Sunday, that the tax reforms could force airlines out of business and trigger massive fare increases, was actually not the true story.
He wrote: “We recognise the genuine challenges facing Nigeria’s aviation industry, particularly the burden of multiple taxes, levies, and regulatory charges.
“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 including:
- Witholding tax on aircraft leases
The single biggest tax burden on airlines has been the 10 percent withholding tax (WHT) on aircraft leases under the existing law. This has now been removed and replaced with a rate to be determined in a regulation, creating the legal basis for either a full exemption or a significantly lower rate.
To put this in context, on a $50 million aircraft lease, an airline currently pays $5 million in WHT, which is non-recoverable and therefore directly increases operating costs and strains cash flow. Eliminating this burden is a major structural relief for the sector.
- VAT-From hidden cost to true neutrality
While the temporary VAT suspension introduced in 2020 following COVID-19 was attractive, it came with a hidden cost. Airlines could not recover input VAT on non-exempt items including certain assets, consumables, and overheads, meaning VAT became embedded in costs.
Under the new tax laws, airlines become fully VAT-neutral. Any VAT paid on imported or locally procured assets, consumables, and services will become fully claimable. Where an airline has excess input VAT, the law mandates a refund within 30 days, supported by a fully funded tax refund account and the option to offset VAT credits against other tax liabilities. This directly reduces cost pressure and improves liquidity.
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Existing exemptions on commercial aircraft, engines, and spare parts remain fully in place. There is no reversal or new burden introduced under the tax reforms.
- Impact on ticket prices
Airline operations are inherently low-margin. A 7.5 percent VAT on tickets, within a system where input VAT is fully recoverable, results in a significantly lower net impact than the headline rate suggests. Even in a worst-case scenario where VAT were not claimable, the maximum impact would still be 7.5 percent, not the price increases being suggested. That is, a N125,000 ticket becomes not more than N134,375 and a N350,000 ticket not more than N376,250.
- Corporate Income Tax
The new law provides a framework to reduce corporate income tax from 30 percent to 25 percent which will benefit airlines. In addition, several earmarked profit-based levies including Tertiary Education Tax, NASENI, NITDA and Police levies have been harmonised into a single Development levy, reducing complexity and ensuring certainty.
- Multiple levies and charges
The multiplicity of levies imposed on airlines and flight tickets is real, but these charges are not created by the new tax laws. It is therefore incorrect to attribute them to the reform. The government is actively working with operators and relevant agencies to achieve a lasting solution. Importantly, the tax harmonisation provisions in the new laws mean the situation can only improve, not worsen, from 2026.
Conclusion
Overall, the new tax laws provide a strong legal and policy framework to resolve the long-standing tax challenges in the aviation sector, reduce operating costs for airlines, and ensure minimal impact on passengers.
If the current engagement with industry stakeholders is sustained, the remaining non-tax issues will be resolved sooner rather than later. Claims not grounded in fact do not help this process. The new tax laws are not the problem, they are a critical part of the solution.”
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President Bola Tinubu on Tuesday, announced the approval of the establishment of a Presidential Task Force on Ebola Virus Disease Preparedness and Emerging Public Health Threats and ordered the immediate release of ₦10 billion as emergency intervention funding.
Bayo Onanuga, presidential spokesman, who conveyed the development to the public, said the fund would strengthen the operational preparedness of the National Centre for Disease Control and Prevention (NCDC) and support critical national public health emergency response activities.
To be chaired by Femi Gbajabiamila, Chief of Staff (CoS) to the President, the committee with membership drawn from relevant Ministries, Departments and Agencies (MDAs) and state representatives is also expected to get briefings on their plans to contain the disease.
Onanuga, stated that Tinubu also specifically directed all states hosting international airports and international border corridors, as well as relevant MDAs, to submit their plans, funding requirements and intervention needs for consideration and coordinated implementation.
Stating that the President’s move followed a stakeholder meeting convened under the CoS to review Nigeria’s preparedness and develop strategies against the possible importation of Ebola into the country., the statement informed that the Task Force would also intensify passenger screening at all international airports through enhanced temperature checks and crowd-control protocols.
Other measures would also include enhanced monitoring of passengers arriving through high-risk airline routes, including Air Uganda, Rwanda Air, Air Tanzania, Air Angola, Kenya Airways and Ethiopian Airlines; and the immediate activation of referral and isolation centres at the Lagos and Abuja international airports, with other airports to follow.
Other measures include the mandatory activation of QR code-based pre-arrival health declaration systems for passengers originating from or transiting through designated high-risk countries, as well as the disinfection of departure halls, cargoes, baggage areas and airport facilities as precautionary environmental measures.
The President also directed the advisory group to consult with security, diplomatic and aviation bodies on regulating flights from affected and designated high-risk countries and mandated the task force to designate specific airports or terminals for high-risk flights to enable controlled screening and isolation procedures, and to consider adjusting flight schedules to minimise interaction between high-risk passengers and other travellers.
Justice Akintoye Aluko of the Federal High Court, Lagos on Tuesday ordered the remand of Paul Jibrin Oweleke in the custody of the Department of State Services (DSS) over alleged cybercrime offences linked to social media broadcasts that allegedly called for overthrow of President Bola Tinubu.
Specifically, Oweleke, in a two-count charge was accused of publishing posts on his online platform known as “Oweleke TV”, urging the Nigerian military to remove the President from office in a manner similar to takeovers in some West African countries, an act the agency said bordered on incitement and the use of a computer system to disseminate content considered prejudicial to national security and constitutional governance.
Oweleke’s broadcasts, the agency stressed, were capable of inciting public disorder and promoting disaffection against the government, which will undermine the country’s democracy.
Legal argument had ensued immediately after Oweleke, pleaded not guilty to the charges, with his lawyer kicking vehemently against the prayer of the agency that the court should order his remand pending the commencement of trial, on the ground that a bail application had already been filed and served on the prosecution.
But Aluko, who was persuaded to grant the prayer, went with the DSS, while adjourning the matter to June 16 for the hearing of the bail application, stating that Oweleke, would remain in the facility of the agency pending the outcome.
By June 29 all medical doctors in public hospitals in Nigeria will drop their stethoscopes and other instruments of healthcare, unless the Federal Government settles all unpaid allowances, salary arrears, delayed training funds, and worsening welfare concerns of its members across the country’s health sector.
This was the notice served to the government on Monday, through The Nigerian Association of Resident Doctors (NARD), the umbrella under which the doctors operate, after rising from Ordinary General Meeting (OGM) held in Kano.
In the 21-day ultimatum to the government, the doctors warned that it would not be able to guarantee industrial harmony if the issues remain unresolved within the 21-day period.
In the resolution conveying their position, signed by Mohammad Suleiman, President, Shuaibu Ibrahim, Secretary-General, and Abdulmajid Yahya Ibrahim, Publicity and Social Secretary, on Friday, the body regretted that government had failed to fulfil several commitments to doctors despite repeated assurances and engagements.
“The association hereby declares an industrial dispute with the federal government of Nigeria on the outlined matters above and cannot guarantee industrial harmony after the 21-day window period given to address all the demands,” the communique reads.
The association said it is giving the federal government the 21-day window to commence concrete actions towards the development and implementation of a national healthcare workers assault prevention and response protocol
and the initiation of the necessary legislative process to address the menace.
NARD also demanded the release and payment of the 2026 medical residency training fund (MRTF) to all eligible resident doctors nationwide within the next 21 days.
The association questioned the unpaid salary and promotion arrears in several federal and state health institutions, as well as discrepancies in professional allowances reflected in members’ May 2026 salaries.
It highlighted the welfare issues affecting house officers, including salary delays, unpaid arrears, and difficulties with internship placement and onboarding processes that remain unresolved.
It also accused Motunrayo Omidiran, executive chairman of the Federal Character Commission (FCC), of delaying the issuance of letters of compliance to federal health institutions, noting that the delay has hampered recruitment efforts, manpower shortages, and brain drain in the sector.
NARD expressed worries about the increasing assaults, harassment, intimidation, and violent attacks against doctors while on duty, demanding the arrests, investigation, and prosecution of perpetrators.
It called for the establishment of a national healthcare workers’ assault prevention and response protocol within 21 days by the federal government and security agencies.
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