Will New Aviation Taxes Force Nigeria to Adopt a National Student Airfare Policy?

The Corpers’ Journey Advocacy Network (CJAN) and the Association for Students’ Social Welfare (ASSW) have called for a National Student Airfare Policy.

This demand follows the implementation of the Tax Reform Act 2025 on January 1, 2026. The groups warn that rising flight costs are now a major barrier to education and human capital development. They released a joint statement as the new calendar year began.

The Call for a Formal Framework

The advocacy groups are pushing for year-round, enforceable discounts for students. These discounts would apply to both domestic and international routes. They argue that student mobility is a national investment. It is vital for academic research, internships, and admissions processes.

CJAN and ASSW acknowledged that some airlines, such as Air Peace, have offered student discounts. For instance, Air Peace has offered a 15 percent discount on select routes. However, the groups stressed that these remain “voluntary corporate promotions.” Students cannot plan academic futures based on temporary offers. These offers depend entirely on an airline’s discretion or seasonal availability.

Taiwo Ajayi, the founder of CJAN, stated that Nigeria loses innovation and research output. This happens when students are priced out of opportunities due to travel costs. He called for a shift from “ad-hoc interventions” to long-term policy solutions. These solutions must guarantee affordability for the country’s students.

Aviation Tax Controversy

A major point of concern for the groups is the Tax Reform Act 2025. This new law officially took effect on January 1, 2026. The advocacy groups and some industry stakeholders warned the law removed previous tax exemptions. This included exemptions on commercial aircraft, spare parts, and airline tickets. They feared these items would now be subject to Value Added Tax (VAT).

Industry analysts and airline CEOs warned this shift could push domestic ticket prices above ₦1 million. Current peak season fares already reach as high as ₦700,000 on some domestic routes. The groups urged the Ministry of Aviation and the Nigeria Civil Aviation Authority (NCAA) to reassess these “heavy tax burdens.” They want to prevent a total collapse in student travel.

Government Rebuttal on Tax Impact

However, the Presidential Fiscal Policy and Tax Reforms Committee countered these claims. The committee insisted that existing exemptions on import duties for commercial aircraft, engines, and commercial aircraft spare parts remain in place.

They argued the new laws are a solution, not the problem. The reforms remove the 10 percent Withholding Tax (WHT) on aircraft leases. This was a major cost burden on airlines. The committee also clarified that the 7.5 percent VAT on domestic tickets is now fully recoverable. This makes airlines VAT-neutral. This change is designed to reduce the net financial impact on carriers.

Despite the government's assurances, the industry remains apprehensive. Airlines are already battling high fuel costs and foreign exchange constraints. The groups believe easing the overall tax burden on airlines is key. This is the only way to ensure Nigerian students remain globally competitive in 2026. For more commercial aviation news and analysis, visit flying.flights.