AON seeks review of aviation taxes, economic boycott of South Africa
The Airline Operators of Nigeria (AON) has called on President Bola Tinubu to establish an independent committee to review taxes and charges in the aviation sector, warning that excessive levies have contributed to the collapse of several Nigerian airlines.
The Vice-President of AON and Chairman of Air Peace, Allen Onyema, made the call during an interview on Arise Television on Tuesday, where he also advocated a non-violent economic boycott of South Africa over recurring xenophobic attacks against Nigerians and other foreign nationals.
Mr Onyema said some of the charges imposed on airlines have become unsustainable, particularly the five per cent passenger service charge collected by the Nigerian Civil Aviation Authority (NCAA).
“One of the truths we want to tell Mr President is regarding this five per cent passenger charge collected by the NCAA,” he said.
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He added that “When we speak, they will say passengers are the ones paying, but we refuse to accept that. If I charge N100,000, NCAA takes five per cent of that money. We did not set up the business with them.”
He urged the president to establish an aviation taxes and charges review committee comprising independent professionals, technocrats, aviation experts and industry operators.
“We want the President to set up an aviation charges and taxes review committee. It is very important. These taxes and charges have been responsible for the demise of many airlines in the country,” he lamented.
The Nigerian Civil Aviation Authority had earlier placed 11 domestic operators on a “no-pay-no-service” sanction list over outstanding obligations, but enforcement was later suspended following concerns over rising operational costs and industry stability.
Growing Concerns
The latest call comes amid growing concerns about the financial state of domestic carriers.
PREMIUM TIMES earlier reported that Nigerian airlines are increasingly relying on bank loans to sustain operations as soaring aviation fuel costs continue to strain the industry. Mr Onyema had disclosed that operators were borrowing heavily to stay afloat, despite a recent reduction in the gantry price of Jet A1 by the Dangote Petroleum Refinery.
Beyond aviation matters, Mr Onyema called on Nigerians to consider an economic boycott of South Africa over recurring xenophobic attacks targeting Nigerians and other foreign nationals.
While condemning the attacks, he rejected calls for reprisals against South African businesses operating in Nigeria, insisting that any response should remain peaceful and lawful.
“I totally agree that there should be a stop to foolishness. Accusing South African authorities of repeatedly failing to protect foreigners during outbreaks of xenophobic violence,” he noted.
He added that, “Every time they do this, and they get the support of their government, I don’t understand how all of a sudden South Africa lacks a police force, lacks the military, lacks every security agency that could have stopped these people.”
Mr Onyema also criticised incidents in which foreigners were allegedly profiled and harassed.
“How do you explain a situation where people would march into somebody’s house, bring you out, question you, ‘Can I see your papers? You’re a foreigner, you have to go back home?’”
According to him, many Nigerians living in South Africa have become investors and employers who contribute meaningfully to the country’s economy.
“He brought money from Nigeria and opened a shop in your country to help your country and help you. The best you could have done is to learn from these Nigerians and acquire some entrepreneurial skills,” he said.
Despite his criticism of the South African government’s handling of xenophobic attacks, Mr Onyema cautioned against targeting South African-owned companies operating in Nigeria, noting that many Nigerians have investments in such businesses.
“I don’t want Nigeria to close down MTN or other companies. Don’t Nigerians have shares in those companies? After all, those people are Nigerians too. I don’t want that,” he said.
READ ALSO: Nigerian airlines now depend on bank loans as fuel costs soar — Onyema
Instead, he advocated what he described as a more effective response: withholding investment and patronage from South Africa.
“The kind of retaliation I want is for Nigerians to boycott South Africa. Don’t invest in that country,” he said.
According to him, withdrawing economic support would send a stronger message than violence or street protests.
“If you decide to go against me, the only thing I can do to you is withdraw my support from you. I don’t have to support you to use it to finish me. That is the kind of retaliation I want. That is the most powerful. If they want to invest in our country, let them bring their money and invest. And determine how they take the money back. That is non-violent action,” he noted.
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