The International Air Transport Organisation (IATA) has Condemns Nigerian Government’s, citing excessive taxes and charges as major obstacles hindering the growth and profitability of local airlines. This rebuke came during the ongoing 7th Aviation Africa summit and exhibition held in Abuja, where IATA’s Vice President for Africa and the Middle East, Kamil Al Alwadhi, highlighted alarming statistics.
Al Alwadhi revealed that Nigeria leads the continent in terms of exorbitant airport charges. Shockingly, Abuja Airport has earned the dubious distinction of being the most expensive airport in Africa, closely followed by Lagos Airport. This, according to the IATA VP, has put Nigerian carriers at a severe disadvantage in competing with their foreign counterparts.
He lamented the stagnation in the aviation industry’s growth, particularly in Nigeria, and Condemns Nigerian Government’s to create a more conducive environment for airlines to flourish. Al Awadhi emphasized the need for urgent action, stating, “With all these exorbitant charges, Nigerian airlines can’t compete with their foreign counterparts. Africa has put itself in a place where it cannot help its own.”
He further explained that African carriers were projected to incur a combined moderate loss of approximately $484 million in 2023 due to the challenging aviation landscape on the continent. Factors such as expensive fuel, excessive charges, soaring leasing and insurance costs, and other financial burdens have impeded the profitability of airlines.
Despite these difficulties, Al Alwadhi noted that the industry was gradually moving towards profitability after the disruptions caused by the COVID-19 pandemic. African carriers experienced one of the world’s highest annual passenger traffic growth rates, second only to Asia Pacific, with a 38.9 percent increase in total traffic compared to the same quarter in 2022.
However, the region still faces economic, infrastructure, and connectivity challenges that affect the aviation industry’s performance. The affordability of air travel remains limited, and infrastructure issues continue to hamper capacity and consistent air service development.
Looking ahead, Al Alwadhi projected that Africa’s passenger traffic would double over the next 20 years, reaching over 300 million passengers annually by 2040. This growth potential, however, is constrained by safety concerns, infrastructure limitations, blocked funds, high costs, inadequate connectivity, regulatory obstacles, slow adoption of global standards, and a shortage of skilled personnel.
One of the critical issues impacting African carriers is the high-interest rates, which exceed 25 percent, making it difficult for airlines to compete globally and thrive in a challenging industry environment. The IATA’s strong message underscores the urgent need for reform and support for the aviation sector in Nigeria and across Africa.
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