Professor Obiora Okonkwo, the spokesperson of Airline Operators of Nigeria (AON) and chairman of United Nigeria Airlines, in this interview with LEO SOBECHI, speaks on the impact of new tax law on the economy, petroleum supply, naira exchange rate on the aviation sector in Nigeria as well as what domestic fliers expect in 2026.

 • There Is Supposed To Be Much Sensitisation’

How would you assess the out-gone year 2025?
For me, 2025 had been a cocktail of different developments – positives and negatives. So, it depends on what aspect one chooses to focus on. For me, I can say that it had been a very fulfilling year. It might not have been a year that you got all the results expected, but it is that year we started laying foundation for the realisation of certain goals we had set out, but obstructed heavily by other things that had transpired in the last three to four years – the COVID disruptions, the instability of the exchange rates, and the flip-flop policy of the government that threw up the Nigerian economy into a highly turbulent situation. So, we saw ourselves trying to navigate and manoeuvre the stormy economic weather.

Now, we have seen a little bit of stability in the exchange rate, a departure from the fluctuations of the recent past. So, we started again, reconstructing the process of achieving our set out targets, objectives, and vision, as it concerns us in the United Nigeria Airline business.

That is why you’ve seen us increasing our fleet at the end of last year; we added six aircraft to our operations. And then, we enter into the year 2026 with a whole lot of plans, which we hope to make public at our fifth anniversary event, around this February. So, there will be a lot of big announcements, I guess, of targets that we’ve set out for ourselves.

On the other hand, year 2025 also had seen a whole lot of government strategies and plans, like the almighty new tax law particularly. And as much as I believe that that action is part of governance, I strongly share the opinions and concerns being raised about this new tax law, as it affects some sectors, especially aviation. The legislators are concerned that there may have been some departure from the legislated aspect of the law, among so many others.

As much as I agree with Taiwo Oyedele that such a thing will favour some sectors, affect some areas, the concerns are worthy of very serious reconsideration. If at all there is nothing to them, the government needs to let the people know that there’s nothing to it, because it is good; tax is better done and collected when there is willingness to pay, when there is a conviction that it might not be for my own good, but good of the nation.

We all want a very progressive, economically vibrant Nigeria. But from both the Act – the implementation aspect of the law – it’s more or less quite intimidating and arm-twisting:  Take over the person’s assets, sell the property within two weeks. All those things are crazy. You don’t do that; it is very draconian.

I think there is supposed to be much sensitisation. And that sensitisation should not just be simply by word of mouth. It should be more or less an exposition of what we have done with the tax you have paid. This is how transparent we are about it. This is what we intend to do with the more tax we are coming to ask from you. And we will see by the proof. So, now you know it. We are going to do this. This process could take one to two years.

Today, people are not carried along; Nigerian people are not carried along in our financial, fiscal policies. There is a lot of concern about which budget we are implementing. The tax collected from a great component of our budget expenditure. How is it being structured? What is it supposed to achieve?

You see, Nigerians ordinarily would love to pay tax. It is easy to go and copy what exists in other countries and put it here. But in those countries, if you have a security challenge, you call 911. They are there. If you have a health challenge, you call an ambulance. They are there. You have your roads infrastructure; you have your lights provided.

What do you pay tax for? That is the question in many Nigerians’ minds. What do we pay tax for when we still provide everything for ourselves? We are in my hometown now. All the infrastructures around us, starting from the electric poles, transformers to the roads and the street lights were provided by individuals. Where is government’s presence?

Government needs to, first of all, show their presence in the life of the people so that they can get their buy-in and taxing will be easy instead of those draconian strategies that come like using force. That is gangsterism kind of stuff.

So, that aspect of the tax discussion is raising some concern. And for us in aviation, we are actually, despite the pushback that is coming from different sectors of government, are concerned that what we are seeing on the paper is different from what the tax man is saying.
Oyedele says there is no cause for alarm with what he has. So, are we reading different tax laws? That is the concern. That is the question. Are we reading different tax laws?

Did AON make those observations known to the Tax Reform Commission?
We actually had a meeting. I led the team of AON to meet with the committee. We explained everything and we had no disagreement. We understood the travails of the sector and the need to unravel all those entanglements with taxes and levies around it. But what eventually came out was a departure from what we discussed and the mutual concern we shared.

Notwithstanding, we had made another engagement with them led by the Vice President of AON. And we put all these things down, drew his attention to some of those things and they were quite understood.

They promised that it has to be looked into in the realisation that the sector (aviation) is a very critical sector that must not be ignored, but get all the necessary attention. So, we will be happy if we have no cause for alarm. But the most prominent of critical issues that stood out from that is his recent pushback.

We are talking about 7.5 per cent VAT. Yet, there was a statement that nothing new was added to what was existing. How can somebody say that VAT is good for us on an average cost of an aircraft? Let us say you buy a brand-new aircraft at $80 million depending on the size of the aircraft or $100 million with funds borrowed at 35 per cent from the bank. When the aircraft arrives, you have to look for another 7.5 per cent to pay VAT. Yet, there is zero percentage duty on the aircraft. Where is the VAT coming from?

That 7.5 per cent, if you calculate it, is a couple of millions of dollars. And then somebody says, I will pay it and you return it to me later. What am I claiming? What do I need to claim?

In our meeting with the taxman, we raised this issue. We said it is not in our interest to claim any VAT. Nobody claims anything from the Nigerian government.

Why should I go and borrow money and pay 35 per cent on the borrowed money that will never be claimed? Who has ever claimed anything from the Nigerian government? Assuming that claiming is important, why should I have to wait to pay and claim? Does it make any sense?

The issue is getting funds, raising revenue that serves you today, but kills you tomorrow. It is not a wise decision. So, we in aviation, the decisions or policies of 2025 gave us concern about the future of aviation in 2026.

There is an issue which you said has thrown up concerns about inflation and its cross-cutting impact on funds in relation to the issue of removal of fuel subsidy, because these issues are tangential to the operation of the AON. How do all these pan out?
Well, we are thankful to Alhaji Aliko Dangote and his refinery, Dangote Refinery. As an association, we are really marveled and surprised at the antagonism against the Dangote Refinery coming from those opposing what has brought a new life to different sectors of this country and even the economy.

Personally, as an economist and a player in different sectors in Nigeria, I know pretty well that without the Dangote Refinery, some of the economic wins we are experiencing now can never be as good as it is. Some of the economic indicators and the indices that are very positive cannot be as good as they are.

Therefore, I would have thought that there should rather be a kind of synergy and more support. I mean, what the government could not do, the private sector has done it. It is just like coming into our own sector of aviation. The government in most parts of the world has failed in aviation, including Nigeria. And the private sector initiative and participation is taking our aviation to a higher height.

As such, understanding that aviation is not about who owns it, but as a catalyst and an enabler to the government. Take one day or one week of no flight in Nigeria, everything ends. People should understand that fact.

As a spokesperson of AON, the people I represent are not only those who buy their tickets and fly; they include those people operating also in the oil sector. The core of our economy is the oil sector. Without aviation services in the oil sector, there will be no exploration, because over 90 per cent of our oil exploration is offshore. And the access to that offshore is through air services, helicopter services and all are members of AON.

So, the question is, what else? Even the blind and the dumb should know that this sector needs to be taken with all the attention and support that it needs. Without aviation, there would have been nothing like Dubai, United Arab Emirate (UAE) and Doha. There would have been nothing about their location in the world. They strategically planned how to get people from all over the world to converge in their place. That’s why when you look at their type of aircraft, they are big body aircraft that can take off from anywhere and fly for 18-20 hours. So, they understand the need and the purpose of the aviation industry.

You cannot be talking about a $1 trillion economy in the future without a thriving aviation industry. The only people that can carry, facilitate, and crystallise that is the transport system, which aviation plays a critical role. All you think they can offer is taxes, levies, contravening all the other existing protocols – IATA (International Air Transport Association) and ICAO (International Civil Aviation Organisation). This is what we thought, but when we talk about it because these businesses are in the hands of the private sector, they look at it as if you are saying something to protect your business. That’s not what it is. We are trying to draw attention to the importance of this business to the economy for many who do not know.

But Prof, sorry to cut in again. While you are at it in this issue of new tax law and all that, innovation counts in situations like this. Have there been any concerted efforts for the AON to unite or reach an agreement with Dangote as to really bridge the energy cost?
Oh, yes. I want to believe that we are all using Dangote Jet A1. We had a meeting with Dangote. And we are also looking into other innovative ways in the new year to reduce costs. So those things are ongoing.

Interestingly, he – Dangote – is quite open and willing to be of any special assistance, where we can benefit more with the refinery’s existence here in Nigeria for optimal services and all that. So, we had a good understanding and it is working out well for us.
You pointed out this issue of flotation of the naira and the volatility of the exchange rate. How does this impact on procurement and pricing in the airline industry?

Well, you see, the issue is that the naira has been stable within a certain margin, tolerable margin, plus minus. So, you can work within that threshold. That’s all we need. If naira is going to be N2,000, let it be 2,000 at least for one year so we can plan.

We are all witnesses to the days when you wake up in the morning, you call for exchange, and they’re telling you this is the price by 10 o’clock. If you call by 12 o’clock, it has changed.

So, the stability has helped our planning. It has helped our strategy. It has helped our growth. There must be stability. So, in that area, we’re fine.

But, unfortunately, these things are all built in the course of operation and they all reflect on the final product cost. And if you don’t price your services well, you’re out of business.

You have bills to pay. You have operational costs to cover. We’ve talked about aviation fuel. You buy and pay. If it costs me a certain amount of money to fuel the aircraft from Lagos to Abuja, and Abuja to Lagos, I must be able to sell a certain amount of ticket to recoup the cost of Jet A1 and other things.

So, if I don’t price well, if I carry you to Anambra during this Christmas, you see, I have 100 per cent patrol in a 180-seat aircraft. And I’m taking the aircraft back to Lagos with two passengers, two, one, 10; it’s costing me the same fuel coming and the same fuel going. How am I going to pay Dangote? Will I go and tell them, ‘Market was not good today. Please, forgive me.’ Is that what people are looking at?

Are you saying that Nigerians misunderstand the airline industry?
No, there is so much for Nigerians to know about the airline industry, even if they know. There are people who do not know because certain engagements become an eye-opener to a lot of people who say, ‘wow, they didn’t know.’ There are people who probably know, but they think that what they know does not matter. But what they expect must be the reality. Yet, these things you don’t control it. What it is, is what it is.

And there are people who know, but their own kind of hate, animosity, is like ‘these people we must bring them down.’ We see that kind of, not even animosity, it’s a kind of hate, envy. So, they come from a position of even if they know and so what? Bring them down.

So, this is why sometimes you’ve seen people, most of the time they have turned the airport to motor parks where people start fighting at any slightest event. We bend backwards to offer Nigerian passengers what they cannot get in any part of the world.

There’s no part of the world where you buy a local ticket for a one-hour flight and the airline puts you in the hotel. But we do that. There’s no part of the world where there is force majeure, issue of weather. They close the airport for sunset. You get a 50 per cent discount on your next flight. If I have AOG (Aircraft on Ground), there are not many parts of the world that have AOG on an aircraft. They cancel the entire flight on that aircraft and continue with the other flights on the aircraft that are flying. And you as a passenger exercise your right and privilege of refund or other things as established by law. And this law is not Nigerian law, it’s international law.

But here, we start accommodating. We start flying extra hours. We start stressing the crew. We start stressing the ground staff so that the people will get to their destinations. Yet, it’s not appreciated.

So, our thinking, this year (2026) is to say enough is enough. We will do our best to provide services. But if you cannot play by the rules, don’t fly. We’ll be happy if you use other means of transportation.
But most of the people using air travel now cite insecurity. How much impact has insecurity on the operation of the airline industry?

Well, I don’t know the reason people fly. But I also know that in the midst of that insecurity, the road is jammed with a lot of people travelling by road. So, it’s a choice somebody makes to fly. There may be insecurity, we all know. But the fact that there is insecurity does not mean that there are no vehicles on the road. That there is insecurity does not vitiate your ability to pay for the service. I also know that luxurious buses are 100 per cent full. Other ground transports are 100 per cent full. A lot of people I know had come from one destination or the other in their own cars. So, what are we talking about?

That should not be the reason you now come to the airport and expect from me, because all those aircraft operated by Nigerian Airlines were not provided to rescue or evacuate people.
But again, beyond insecurity, other parts of the world, America is the biggest country for aviation travelers even internally. Does it mean that their roads are not good? Does it mean that there is insecurity on their roads? No, it does not.

What it means is that aviation still provides essential services. It’s still a means of travel. There are countries that travel by train. There are some countries that can still travel by sea, by water internally. But aviation is still there.

You cannot tell me tomorrow if there is 100 per cent peace in Nigeria, if there is 100 per cent safety on the roads, then Nigerian aviation will collapse. Is that what you mean?
The issue is that for whatever reason you come to the airport, you’ve got to be civilised. That’s our own thing. We don’t provide nationwide security. We don’t have our own aviation security. We are just providing this service. And we have a responsibility to create an enabling environment for our staff to work. These are children of some people. These are wives. These are relations. You don’t just come and start molesting anybody.

We go around the world. I travel as much as any Nigerian. I mean I’m in the first category of travelers in Nigeria, whether it’s internationally or locally even before I became part of an airline.

And there’s nothing that is happening now that I don’t see anywhere. However, what I don’t see is how Nigerians react to situations at the airport. I don’t see it anywhere in the world. And these people that do react also see these things around and keep quiet.

During the last Christmas season, we saw people who landed in Nigeria with a foreign carrier. And for two, three, four days, they did not even know the location of their luggage. But this is a special period that people travel with extra luggage.

And we’re talking about people who are seasonal travelers, who travel once a year, once in two years, or even three years. So, they come with all sorts of luggage. So, if that’s taken off from a particular origin, whether it’s America or Europe, aircraft, for safety reasons, have some weight restrictions. You must have to have maximum weight of take-off and maximum weight of landing.

So, if the crew calculates that they can’t take more than this because the passengers have their own weight, because this is one of the rare occasions you have 100 per cent full. Therefore, if you have less passengers, you have more room to accommodate luggage. But if the passengers are there, you take them and drop some luggage.

For these passengers, it might take them five days to receive their luggage from their foreign carrier coming into Nigeria. Well, when they pick it up from Lagos or Abuja, and then want an onward journey to anywhere in the Southeast, and if they land at the airport and their luggage did not follow them at the airport, they start fighting.

They would not even want you to board another aircraft if they don’t have their luggage with them there. Meanwhile, they came in from overseas. They did not have their luggage for five days. They did nothing. But if it is a domestic flight they start fighting. We are not going to tolerate that any more. You must play by the rules, because it’s the same rule that we apply.

Have Artificial Intelligence (AI) and machine learning any role to play to mitigate some of these challenges those in the aviation industry face?
I can tell you that we are up-to-date with all the technological innovations in aviation. As a matter of fact, aviation is one all over the world, because if you don’t, you cannot integrate or connect.

So, the systems we are using are not different from the systems you see around the world. On the side of the aircraft, I mean, you can see that even operators are buying brand new aircraft. And those things are only integratable with modern systems. We are using state-of-the-art aircraft in our fleet.

You can’t just operate if you are not up to date, because the same aircraft you have here can take off and land in London. It should land in America. Look at Air Peace that goes to America and to different parts of the world. If your system is not up to date and integratable, you cannot operate.

So, I think we are worried that maybe the ground services, the stationary facilities might not be as updated as possible, because in many airports of the world, you can land the aircraft with zero facility, zero visibility.

You can land the aircraft with equipment aid. And our aircraft have all the supporting integration, but we don’t have the ground support. That’s why, if the weather is bad in Asaba, you have to wait for one or two, three hours for the weather to improve, checking every hour on the hour. And by the time you know you are three hours behind your schedule, and then the passengers are blaming you for not being on time. We are not happy with all these things.