Nigeria Among World’s Costliest Countries for Airlines, IATA Warns as Operators Struggle With Rising Expenses

The International Air Transport Association (IATA) has raised concerns over the high cost of operating airlines in Nigeria, describing the country as one of the most expensive aviation markets globally for carriers.

Speaking during the IATA Annual General Meeting in Brazil, IATA’s Regional Vice President for Africa and the Middle East, Kamil Al-Awadhi, said airline operators in Nigeria continue to face severe financial pressures due to elevated operating costs.

Al-Awadhi acknowledged ongoing efforts by Nigeria’s Minister of Aviation and Aerospace Development, Festus Keyamo, to improve the aviation industry through reforms and policy interventions. However, he noted that the operating environment remains challenging for both domestic and international carriers.

According to him, excessive taxes, regulatory charges, and other operational expenses have significantly increased the cost of doing business in the sector. These factors, he said, have made it difficult for airlines in Nigeria to maintain profitability, compete effectively, and expand their operations.

The IATA official stressed that the situation is not unique to Nigeria but remains particularly severe in several West African markets. He warned that persistent high costs could hinder the growth of the aviation industry and limit its contribution to economic development.

As part of efforts to address the challenge, Al-Awadhi called on member countries of the Economic Community of West African States to adopt a proposed 25 per cent reduction in aviation-related taxes and charges. He explained that lowering these costs would help make air travel more affordable, encourage passenger growth, and strengthen the competitiveness of airlines operating across the region.

Industry experts have repeatedly argued that reducing the financial burden on airlines is critical to improving connectivity within West Africa. They maintain that lower taxes and charges could stimulate travel demand, support tourism, facilitate trade, and attract greater investment into the aviation sector.

IATA’s latest remarks are expected to intensify discussions among governments and aviation stakeholders on the need for policy reforms aimed at creating a more business-friendly environment for airlines, particularly in Nigeria and other West African countries where operating costs remain a major concern.