Keyamo: Nigerian Aviation Tax Reforms Mandate Full Government & Legislative

December 2, 2025 at 05:19 AM•2 min read

Nigeria's Aviation Minister Festus Keyamo confirms that removing aviation taxes demands full government consensus and legislative review, with a

Key Points

1Nigerian Aviation Minister Festus Keyamo states tax removal requires collective government approval, involving the Ministry of Finance, tax authorities, and National Assembly, not a solo decision.
2President Bola Tinubu has demonstrated commitment to easing tax burdens, notably by excluding aviation from a recent 4% tax law, and has initiated a review of multiple taxation.
3Despite government efforts, the aviation industry expresses concern over the new tax reform law, which removed long-standing exemptions on aircraft parts, VAT on tickets, and other levies.
4Beyond taxation, Keyamo identified infrastructure deficits and limited access to financing/aircraft leasing as critical barriers to Nigeria's aviation sector growth and airline expansion.

Nigerian Minister of Aviation and Aerospace Development, Festus Keyamo, emphasized that the removal of taxes within the nation's aviation sector necessitates collective government approval and legislative review, rather than a unilateral decision by his ministry. Speaking at an event celebrating 100 years of Nigerian aviation in Abuja, Keyamo clarified that despite significant industry pressure concerning multiple taxation, the authority to eliminate such levies extends beyond the aviation ministry's sole jurisdiction. He stressed the requirement for input from critical institutions, including the Nigerian Ministry of Finance, national tax authorities, and the National Assembly, as many existing taxes are statutory.

Keyamo further noted that the Nigerian legislature must deliberate on any tax adjustments before their implementation. He highlighted President Bola Tinubu's proactive commitment to alleviating tax burdens on the industry, citing the President's immediate exclusion of aviation from a recently enacted 4% tax law. Currently, a dedicated team established by the President is actively reviewing all aspects of multiple taxation impacting airline operations in Nigeria. This comes as the federal government's new tax reform law, aimed at consolidating statutes and widening revenue generation, has raised concerns within the aviation industry over the removal of long-standing exemptions on aircraft parts, VAT on tickets, and other operational levies.

Beyond taxation, Keyamo identified the significant infrastructure deficit as the primary impediment to Nigeria's aviation growth. He advocated for the development of fully functional airport hubs capable of facilitating seamless international transit, enabling Nigerian carriers like Air Peace to operate more profitable, long-haul connecting routes without passengers needing to formally enter the country between flights. The minister also cited access to financing and aircraft leasing as the second major obstacle for airline expansion. Despite these challenges, Keyamo maintained that Nigeria's market capacity, large population, and strategic geographical location offer inherent advantages for aviation sector development.