The imposition of an additional $11.5 security levy on inbound and outbound Nigerian passengers has no appreciable value-added for air transport consumers who will bear the tax burden. The estimated $46 million extra revenue expected to be generated from the new tax for the Nigeria Civil Aviation Authority (NCAA), which is the only reason given by the government, is not tenable in a sector that has made air travel in Nigeria more expensive than in other parts of the world.

Further pushing it beyond the reach of citizens through exorbitant charges is insensitive and antithetical to an economy aiming at a $1 trillion-worth target. The federal government had planned to roll out the policy last week (December 1, 2025).

Air transport is a global capital-intensive enterprise with the capacity to power local economies. It is, however, a very sensitive industry that gives as much as it gets. By reasons of its demographic strength, Nigeria is one of the most popular destinations for world airlines. The country is also one of the most notoriously expensive for air travellers and airlines. The Nigerian version of the air transport industry has a total of 20 taxes and charges – it had over 35 in 2021. Those taxes and charges account for between 38 and 65 per cent of revenue accruable to operators.

In place of a harmonised tax regime, an additional tax, in the form of the Advance Passenger Information System (APIS), is adding an extra $11.5 to the current burden. The extra increases Nigeria’s security levy to $31.50 per flight ticket. The development will further increase the cost of international travel borne by Nigerian travellers.

The apex regulatory body, NCAA, in a notice to airlines, stated that the levy aimed to create a “single window” approach for all agencies at the airport, and the collection is expected to last for 20 years. According to the agency, the system would help to track passenger movements, improve border control, and provide airlines with a cost-recovery mechanism for the system’s maintenance.

Additionally, the $11.5 million levy would streamline passenger clearance at Nigerian airports by collecting and processing passenger data before arrival. This initiative is in partnership with the Nigeria Immigration Service (NIS).
 
The additional levy, although not unique to Nigeria, readily finds prima facie justification in security that is more than ever a national concern. But the justification pales into insignificance, realising that the industry is not new to security levies. The new APIS levy is therefore a duplication of extant security levies, contrary to international best practices, the International Civil Aviation Organisation (ICAO) standards and ease of doing business.

The Nigerian aviation industry has a statutory $20 security levy that was introduced in 2010 by the former Director-General of NCAA, Dr Harold Demuren, in the wake of the Umar Abdulmutallab suicide bomber crisis of December 25, 2009. That was expected to last for 20 years. The $20 levy, like the proposed $11.5 charge, is intended to enhance security infrastructure at Nigerian airports and implement advanced passenger information systems.
 
In fact, each inbound and outward passenger currently pays $20 and five per cent as security and Ticket Sales Charge (TSC), respectively, to NCAA, while FAAN receives $100 as Passenger Service Charge (PSC). The PSC sum, FAAN said, is also for airport operations (maintenance and upgrades of airport facilities, security (screening of passengers and baggage), safety (emergency response services and equipment and comfort (provision of amenities and services for passengers).

An average inward or outward passenger in Nigeria will now pay approximately $180 to $200 in taxes, charges, or levies, as airlines traditionally pass the burden on to consumers. According to the International Air Transport Association (IATA), Nigerian air travellers pay an average of $180 per foreign departure and arrival, which is about 264 per cent higher than any other African country.
  
It requires no explanation why flight tickets are more expensive, and commercial air travel is the exclusive luxury of the Nigerian elites. Each layer of taxes, levies and charges may look modest in isolation, but together they form a hurdle too high for many would-be passengers.

It is a fact that less than eight per cent of the Nigerian population travels by air yearly, and more than half of these are irregular users. The rest of the population are the everyday people banished to bus terminus negotiating cross-country trips on a dangerous road network and daily praying to escape road carnage and kidnappers.

For as much as roads must be motorable and safe for all, commercial air travel in Nigeria must also be quite affordable for more Nigerians, irrespective of status or station. It makes no democratic sense that over 90 per cent of Nigerians cannot afford to fly on a local airline because a round-trip ticket averages N300,000, and an international flight ticket exceeds N1.5 million.

Airlines in Europe, America, and the Middle East thrive more on passenger traffic, made possible through affordable airfares. Without a reduction in the number of charges, air tickets would continue to carry the luxury tag in Nigeria, and domestic airlines would remain unprofitable; instead, they would continue to fold up after a relatively short operating cycle.

Minister of Aviation and Aerospace Development, Festus Keyamo, recently reaffirmed the federal government’s commitment to supporting local airline operators, who have commended the removal of a four per cent Free on Board (FOB) charge on aviation imports. That is a good development. However, far-reaching pragmatic actions are needed to unlock the potential of the latent aviation industry.

It begins with the government appreciating the industry as a catalyst for economic growth and a key component of the current administration’s $1 trillion economy target, rather than as another avenue for easy money for an administration that is over-focused on making more money from hapless citizens.
 
Governments must recognise that the greatest value aviation brings to an economy is catalytic. Transporting travellers and goods stimulates job creation. Excessive taxation destroys demand and halts economic and social development. Where charges are used to fund critical aviation infrastructure, coordination between industry and government is essential. The aim is to build growth-supporting infrastructure that is both cost-efficient and scalable.