President Bola Ahmed Tinubu, PBAT,
President Bola Ahmed Tinubu, PBAT, has been commended for the tax reform which is meant to stimulate businesses in Nigeria. He has also been urged to give a close and critical look at the reform as it will affect the aviation industry when its implementation begins, in order to prevent extinguishing though unwittingly, the Goose that is laying the golden egg- AVIATION.
Capt. Edward Boyo, Chairman of Aviation & Allied Business, made the entreaty at the webinar on public enlightenment on how the new tax reform will positively impact the aviation industry when it comes into force in January 2026.
Mr. Zacch Adelabu Adedeji, Chairman, Nigeria Revenue Service, NRS, formerly Federal Inland Revenue Service, FIRS
Capt. Boyo, whose firm sponsored the webinar, reminded the over 350 attendees at the virtual event that aviation is just a means by which businesses accomplish their set objectives, and by which products and services reach their destinations and as such, deserves special treatment in the matter of taxation.
He said the current economic realities, which negatively affects the Naira at the foreign exchange market, had brought unimaginable pressure on the industry players, and any additional burden in any guise, would be too much for comfort.
Capt. Edward Boyo, Group Chief Executive, Aviation & Allied Business Conglomerate, Webinar Convener
Boyo, while driving home his point, said that nearly every input into the aircraft that freight passengers and cargoes nationwide and on international routes are manufactured overseas.
He also noted that every maintenance, spare parts procurement, and all other paraphernalia to ensure airworthiness and safety of the aircraft are paid for in foreign exchange; hence, the Federal Inland Revenue Service, now known as the Nigeria Revenue Service, NRS, should come to terms with the industry reality, and accordingly advise Mr. President.
Capt Boyo who, ostensibly presides over the most consistent and the most resilient airline in Nigeria, 21 years and still counting, appealed to the guest speaker, Barr Nkechi Umegakwe, a Director with the NRS, to re-present the aviation industry peculiarity to the think tank body on the yet to be adopted new tax administration and accord a special status to aviation in the new dispensation soon to kick off in 2026.
Barr. Nkechi Umegakwe, in her delivery, said viewing the tax reform from all angles, be it business owners, employees, or government representatives, the new tax administration has taken cognisance of everyone’s circumstance and is out to make business not only to breathe but to flourish
Dr Richard Aisuebeogun, Webinar Moderator
She said the tax reform is designed to set the economy aglow and ensure that workers, whether in the public or private sector of the economy, have sufficient disposable income to enable them to enjoy some luxuries, such as air travel.
Reacting to Umegakwe submission, Dr. Samson Fatokun of the International Air Transport Association, IATA, representing the Central & West Africa sub-regions, urged the guest speaker and the team at the NRS to consider various treaties that Nigeria is a signatory to in aviation so that the reform will take cognisance of multiple agreements as they affect international air transport.
To drive home his point, Dr Fatokun drew everyone’s attention to the most recent ECOWAS treaty signed by the Heads of State, in which they agreed that there would be no taxation of any kind on air passengers in the subregion- An effort by ECOWAS to achieve regional integration in air connectivity.
Fatokun said further that the treaty was signed on 14th December 2024, at a meeting presided by President Bola Ahmed Tinubu, and for Nigeria, the widely acclaimed giant of Africa, within a little over a year of the treaty, has become the pioneer in flouting such a treaty deserves, very urgent attention and reconsideration.
Capt. Samuel Caulcrick, called the attention of the resource person to the fact that there is a need for serious reconsideration to help industry players discern what amounts to tax and levy.
He said currently, the only major means of revenue to the industry’s regulator and other critical agencies for safe and economic air operations in Nigeria are the Ticket Sales Tax, TST, and the Cargo Sales Tax, CST; hence, he demanded clarification on the position of the new tax administration regarding those existing means of revenue.
Succinctly put, Alhaji Mohammed Ahmed Tijjani, Director Air Operations Services, Federal Ministry of Aviation & Aerospace Development, represented the Minister of the Ministry, Barr Festus Keyamo, said the minister is not satisfied with the position of the reform in some aspects of air transport.
He said the minister is still in continuous dialogue with the tax reform think tank on some specifics in the reform that surely will be deserving of reconsideration to eliminate headwind for aviation, not only to breathe but to flourish.
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