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Import duty waiver: Airlines still pay heavily on importation of spare parts says Usidamen

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By Oyise OGHENE
LAGOS: Following the removal of import duty waiver on aircraft and spare parts by the Federal Government three months ago, investigation revealed yesterday that airlines were groaning as they were still been forced to pay heavily for the importation of their aircraft and spare parts.

This revelation shows that the directive of President Goodluck Jonathan have not been implemented due to the failure of the Ministry of Finance and Nigeria Customs Service (NSC) to fully put such directive into action.

Airlines still pay heavily on importation of spare parts says UsidamenSpeaking to newsmen in his office in Lagos, Head of Corporate Communications, Dana Airline, Mr. Tony Usidamen who confirm the situation said that it was very pathetic that three months down the line, airline operators were still ask to pay enormous amount of money as import duties for the importation of their aircraft and spare parts.

Mr. Usidamen further called on the Federal Government to fast track the full implementation of the removal of import duties on aircraft and its spare parts stressing that if done, it would bring succor to the airlines and the travelling passengers will be better for it at the long run in buying their tickets at cheaper fares.

He said ‘‘Yes the Federal Government have announced that it would remove the duties and waivers for airlines on importation of spare parts, we are looking to that regime commencing because it will go a long way in reducing the operational cost of airlines, keeping the airlines profitable and also making the fares more attractive so that at the end of the day, the average traveler is better-of for it’’

According to him,‘‘To the best of my knowledge, the implementation of the import duty waiver hasn’t taken place yet but we believe strongly that the government will keep its promise in this regard, the leadership of the ministry of aviation has demonstrated commitment towards seeing improvement in the sector and the on-going remodeling of the airports across the country is a sign of it, so we have no doubt that the government is sincere in this regard and we hope that it will come into effect soon’’

It would be recalled that experts in the industry had said that, this is not the first time a President would give a directive on removal of import duty waiver. They cited former President Olusegun Obasanjo giving the same directive in 2006, backing it up with letters that were allegedly not carried out.Air Marshall Paul Dike (rtd) committee set up by Obasanjo to help tackle the decay in aviation sector after the devastating crashes of Bellview and Sosoliso Airlines in 2005, had in its report recommended to the Federal Government in 2006 to cancel the percentage of tax being charged on spare parts in order to assist the commercial airline operators to improve their business in the country.

Commenting on the operations of Dana Airline since its resume operations on January 4 2013, Mr. Usidamen pointed out that the operations had been going on smoothly stressing that the passengers’ traffic to the airline was quite encouraging.

According to him, the airline will soon resume its operations on the Lagos-Port-Harcourt in two weeks as plans to expand it route network.

He said ‘‘I can confirm to you that in about two weeks time, we should be resuming operations to Port-Harcourt city, plans are also on the way to resume operations to the other cities we fly to, in Uyo, Calabar but specific date will be announce in due course, it is our desire to take our quality services to all of these other cities, a lot of our loyal passengers on that route have already sent in several mails, several requests asking us to come back”

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Aviation

Airfares Likely to Rise as Aviation Fuel Price Spikes by 80%

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The Airline Operators of Nigeria (AON) has declared that airlines operating in Nigeria have come under financial pressure following a sharp increase in the price of Jet-A1, also known as aviation fuel.

According to the group, the price of aviation fuel, has surged to about N1,800 per litre in many parts of the country, from about N1,000 per litre two weeks ago. This amounts to almost an 80 per cent increase within a short period.

Aviation fuel remains the largest cost component in airline operations, accounting for about 30 to 35 per cent of total operating expenses.

Industry stakeholders have linked the latest spike to the ongoing conflict in the Middle East, which has pushed up global energy prices.

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Speaking on Channels Television on Friday, the spokesperson for the Airline Operators of Nigeria, Prof Obiora Okonkwo, said the surge had placed airlines under severe financial strain.

According to him, most carriers have so far refrained from immediately transferring the additional cost burden to passengers, despite the pressure on their operations.

“Two weeks ago, we were getting Jet-A1 at about N1,000 per litre, which today is about N1,800, and even more in some stations. We have experienced an increase of about 80 per cent. That’s quite a spike,” Okonkwo said.
He explained that airlines were currently absorbing the losses in order to avoid worsening the economic burden on the travellers.

“We are not in a business where you can easily adjust your ticket price. Right now what we are doing is that we are bleeding. We are taking the blow. We are selling tickets at very non-profitable prices. We are losing a lot of money,” he said.

Okonkwo warned that the situation might not be sustainable if fuel prices continue to rise without government intervention.

“Obviously, adjustments will be expected anytime soon. But again, we are very sensitive to the economic situation of Nigerians and our travellers,” he added.

He noted that developments in the global oil market, particularly the recent release of reserve crude oil, could influence fuel prices in the coming weeks.

Okonkwo also urged the Federal Government to explore engagement with the Dangote Refinery as part of efforts to stabilise aviation fuel supply locally.

“We were more hopeless in a situation where there was no refinery in Nigeria in the last two years. Now that we have a refinery, we are hopeful that we can find a solution around it,” he said.

According to him, if the spike persists, some airlines may struggle to continue absorbing the losses associated with the rising cost of aviation fuel.

Meanwhile, the AON spokesperson also reacted to the decision by the Federal Competition and Consumer Protection Commission to sanction about five airlines over alleged price fixing.

Okonkwo said while the commission has regulatory powers, the aviation sector remains deregulated, making coordinated price fixing unlikely.

“There is no meeting of airlines where they agree to fix prices. Fixing prices would mean operating as a cartel, and that is not the case,” he said.

He explained that airline ticket pricing varies widely because different aircraft types attract different operating costs.

“Each airline determines its fares based on its own operational costs,” he said.

Okonkwo added that airlines must also demonstrate financial viability to regulators as part of the conditions for maintaining their operating licences.

“At every point in time, you must prove to the regulators that you are financially viable and capable of sustaining operations,” he said.

He urged regulators to take into account the fragile nature of the aviation industry when making policy decisions affecting airlines.

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Aviation

Bird Strike Hinders Air Peace Lagos–Port Harcourt Flight

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An Air Peace flight from Lagos to Port Harcourt has suffered a disruption, after the aircraft was affected by a bird strike on arrival at the Port Harcourt International Airport.

The airline made the disclosure on Thursday in a statement signed by its spokesperson, Osifo-Whiskey Efe.

He added that the incident necessitated safety checks on the affected aircraft and the deployment of another aircraft to convey passengers on subsequent flights.

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“We deeply empathise with passengers affected by this unforeseen incident and are working diligently to minimise disruptions,” Efe said.

The latest incident adds to the growing challenge of bird strikes faced by local airlines.
In December 2025, Air Peace disclosed that it recorded 49 bird strikes across Nigeria between January and September, stressing that even a single strike could ground an aircraft for weeks.

Chairman and Chief Executive Officer of the airline, Allen Onyema, had said on Arise TV that bird strikes constituted a major operational challenge, often leading to costly repairs and serious disruptions to flight schedules.

“One bird strike could cripple your aircraft for the next month. At that moment, there is no two ways about it. These bird strikes often lead to costly delays and serious disruptions in flight schedules,” he said.

He added that losses from such incidents compound other challenges facing Nigerian airlines, including heavy taxation and operational constraints.

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Aviation

HURIWA Saddened at 131% Surge in Air Peace, United Nigeria Airfares to Southeast

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With the firm belief that it is both sadistic and absolutely despicable, the recently announced outrageous hike in airfares to South East from Abuja to Lagos for Yuletide of 2025 by over 131 percent by Air Peace and United Nigeria Airlines, the owners have been asked to immediately have a rethink and review backward these harsh, toxic and unfriendly airfares targeting Igbo passengers exclusively.

Making the charge to the chairmen of Air Peace and United Nigeria airlines, Mr. Allen Ugochukwu and Mr. Obiora Okonkwo, the prominent civil rights advocacy group, Human Rights Writers Association of Nigeria (HURIWA) expressed anger that these businesses whose proprietors are Igbo by birth are fond of making it so difficult for hundreds of thousands of Igbo passengers residing outside of the South-East to travel home on Christmas festivities.

The rights group say that for many years now, because Air Peace and United Nigeria Airlines are monopolies and then Igbos have the tradition exclusively in Nigeria of going home to South East from all over the globe during Yuletides, these few airlines have decidedly fixed toxic ticketing airfares for Igbos whereas northerners who also travel during their religious festivities of salah are not subjected to such exploitative treatments.

The HURIWA accused the two airlines of price fixing, which is anti-competition just as the Rights group said it is giving these two Igbo-hating airlines to review backward their toxic and discriminatory airfares within ten working days from today or it will petition the federal government publicly funding consumer rights body[Federal Competition and Consumer Rights Commission) in Abuja.

The HURIWA wonders if these Igbo owners of private airlines known for making their planes available to government for free during emergencies are in a conspiratorial plots with haters of Igbo land who are unhappy at the convivial and happy atmospheres in the South East during Yuletide, just as the rights group has appealed to Igbo governors to immediately intervene and urge Mr. Allen Ugochukwu and Mr Obiora Okonkwo to treat the Igbo just as they treat for instance northern Muslims who also migrate home to northern Nigeria from around the globe during their Muslim festivities because what is good for the goose, is good for the gander.

The HURIWA said that if Air Peace Airlines have gotten involved in many humanitarian efforts of airlifting Nigerians from outside of our shores for free, it becomes of the Airline ought not to maltreat their clients of Igbo extraction.

The HURIWA quoted from the business official website of Air Peace in which it described its latest humanitarian effort to be an addition to a growing list of interventions by Dr. Allen Onyema and Air Peace.

Quoting Air Peace website, HURIWA stated that Air Peace said thus: “In 2019, the airline airlifted 503 Nigerians free of charge from South Africa amidst xenophobic attacks. During the COVID-19 pandemic in 2020, Air Peace conducted multiple repatriation flights. In 2022, the airline flew Nigerian evacuees out of war-torn Ukraine. In May 2023, Dr. Onyema again deployed Air Peace aircraft to evacuate 277 stranded Nigerians from Sudan.

As the rescued women prepare to begin a new chapter, supported by medical care and reintegration efforts, one truth stands out: Air Peace is more than just an airline — it is a bridge of hope for Nigerians in crisis, and a national symbol of empathy, courage and service,” HURIWA conclusively quoted Air Peace.

The HURIWA therefore strongly condemns the two airlines for hiking and fixing unaffordable airfares indiscriminately against Igbo passengers, even as the festive season draws near, Air Peace and United Nigeria Airlines have raised their return ticket fares to N677,000, a move that could add financial strain on travellers. The rise in airfares reflects the high demand expected during the holiday rush.

Key Points

Air Peace and United Nigeria increase return ticket fares to N677,000 for the yuletide season.

Airfares on routes to the South-East, including Enugu and Anambra, experience the highest surge.

Ibom Air offers comparatively cheaper tickets, with return fares at N381,600.

Air Peace’s one-way fare for December to January peaks at N350,500.

United Nigeria will also charge N350,500 for select routes between December 11 and the end of the year.

Northern routes, including Lagos-Kano, face smaller increases, with fares starting from N106,900.

Experts predict even higher airfares, with one-way tickets possibly reaching N500,000.

The rise in flight prices signals the start of a challenging holiday travel season, with airfares higher than usual due to increased demand. Travelers must be prepared for the surge, with some routes seeing even higher fare projections.

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The HURIWA is hereby warning the two airlines to withdraw their price fixing malpractices against Igbos or else the Rights group would seek justice and redress for the millions of Igbos who would return home for the 2025 Yuletide from the Federal Competition and Consumer Rights Commission and the National Human Rights Commission of Nigeria. The HURIWA threatened to drag the two airlines to the Nigerian President through the Honourable Minister of Aviation and Transportation.

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