The International Air Transport Association (IATA) has berated the Nigerian aviation industry over the high taxes and levies charged in the airports.
This was revealed by Kamil Al-Awadhi, the Vice President of IATA, Africa and Middle East, in his presentation at the Aviation Africa 2023 summit held in Abuja.
Al-Awadhi listed two airports in the country, the Nnamdi Azikiwe International Airport Abuja and the Murtala Muhammed International Airport, Lagos as the top two airports with the highest airport charges.
According to the IATA chief, foreign airlines operating in the Nigerian airspace are charged about 27 levies making it the most expensive in the world and scaring off other airlines from flying into the country.
His words, “Abuja has the highest charges followed by Lagos. How can you have such high taxes and expect to be profitable? Nigerian airlines can’t compete with others. African airlines have put themselves in a terrible situation to compete. They are not financially viable with excess charges.”
“Fuel is higher by 20 percent. The loans are horrendous. The continent needs to review these issues. If you want to see Gross Domestic Product (GDP) change, just fix your aviation industry. Doha, Dubai, and the entire United Arab Emirates (UAE) grew from nothing. Airlines contribute to the growth of the economy”.
Al-Awadhi also said the development would negatively affect airline operations as the heavy levies and taxes would eat into the profits of the airlines.
Speaking further, he asserted that the continent's carriers and the African aviation industry in general was affected by the high-interest rates at over 25% thus preventing a healthy competition between African carriers and its international counterparts.
Al-Awadhi said another issue that bothered the industry was the aircraft lease rental rates which he said is three times higher than what is obtained in Europe.
He also lamented that Africa accounts for just 2.1% of air transport activities despite accounting for 18% of the global population.