NEWS
New Tax Law Could Push Domestic Airfares To ₦1m — Air Peace CEO Sounds Alarm
Allen Onyema, Chairman and CEO of Air Peace, has warned that Nigeria’s domestic aviation sector faces a severe financial strain following the implementation of a new tax law, which could see ticket prices soar to ₦1 million.
In an interview with ARISE NEWS on Sunday, Onyema described the situation as “critical,” emphasizing that the combined effect of multiple taxes, levies, and mandatory charges could force some airlines to suspend operations, potentially destabilizing the industry.
“The Nigerian airlines are heavily overburdened by taxes. For example, on a ₦350,000 ticket, the airline only receives about ₦81,000. Despite perceptions, airlines are not making huge profits,” Onyema said.
SEE ALSO: Domestic Flights In Nigeria Among the World’s Cheapest — Air Peace Boss
He singled out overlapping charges, including a 5% mandatory deduction to the Nigerian Civil Aviation Authority (NCAA), and warned that the new law imposing 7.5% VAT on aircraft and spare parts will further strain airline finances.
“If this tax reform is implemented, ticket fares could hit ₦1 million for economy class. Nigerian airlines could collapse within three months, and banks that have invested in the industry would also feel the impact,” Onyema stated.
He highlighted the contrast with the 2020 tax law, which removed VAT and customs duties on imported aircraft, spare parts, and ticket fares, providing significant relief for operators.
Under the current law, high borrowing costs of 30–35% exacerbate the financial burden.
Onyema also noted that the Airline Operators of Nigeria (AON) repeatedly raised these concerns with the National Assembly and the tax reform committee, but their warnings were largely ignored.
Despite the looming crisis, Onyema commended the federal government and President Bola Tinubu for previous responsiveness to industry complaints and urged a return to the 2020 Act.
“The government has been listening to our concerns in the past, and we hope decisive action will be taken to prevent a collapse of the domestic aviation industry,” he said.
NEWS
Dangote Hosts Kenya’s President Ruto At Refinery
Kenyan President William Ruto on Friday toured the Dangote Petroleum Refinery and Petrochemicals Complex in Lekki, Lagos, where he was hosted by Dangote Group President and Chief Executive Officer, Aliko Dangote.
The visit comes ahead of the planned September 30 groundbreaking of a proposed 700,000-barrel-per-day refinery in Lamu, Kenya, being developed with Dangote.
ALSO READ: Dangote to Support Two Million Women with Refinery IPO Share Ownership
The Dangote Group had earlier confirmed that Dangote would host Ruto during his visit to the Lagos refinery.
The planned Kenyan refinery is expected to expand refining capacity in East Africa and strengthen petroleum supply in the region.
Ruto had earlier said discussions with Dangote and Africa Finance Corporation CEO Samaila Zubairu focused on financing and final preparations for the project.
Dangote is targeting a combined refining capacity of 2.1 million barrels per day through the planned expansion of the Lekki refinery and the proposed Kenyan facility.
NEWS
‘Obi Knows He Is Lying’ — Soludo Camp Releases Documents on ₦363m Workers’ Arrears Payment
The Anambra State Government has released documents showing the payment of ₦363.381 million as the second tranche of salary arrears owed to former staff, pensioners and next-of-kin of workers of the defunct Anambra State Water Corporation (ANSWC) and Anambra State Environmental Protection Agency (ANSEPA).
The development has intensified the ongoing dispute between Governor Charles Soludo’s administration and former Governor Peter Obi over outstanding workers’ entitlements and the financial obligations allegedly inherited by successive administrations in the state.
Presenting the documents as “Part 3: Evidence that lying is in Peter Obi’s DNA,” the Soludo camp accused the former governor of misleading Nigerians over his record on workers’ entitlements.
ALSO READ: I Won’t Seek Governorship Again, Even If Constitution Is Amended -Peter Obi
“Peter Obi knows we know he’s lying,” the statement said, alleging that the arrears were among workers’ entitlements left unpaid during Obi’s eight years as governor.
According to the documents, the ₦363.381 million payment represents the second tranche provided for under an out-of-court settlement reached between the Anambra State Government and representatives of the affected workers on February 6, 2024.
A memo dated May 22, 2025, and signed by the then Head of Service, Dame Theodora Okwy Igwegbe, mni, requested the release of the second tranche, citing Article 7 of the Terms of Settlement.
The memo stated that ₦363.381 million was due for payment in 2025 under the agreement.
A subsequent Ministry of Finance document dated June 24, 2025, confirmed the release of the funds through Capital Expenditure Release Warrant (CERW) No. 67/2025.
The Soludo administration had earlier paid the first tranche under the settlement, with the government saying the payments were aimed at resolving long-standing salary claims involving workers of the two defunct agencies.
Dispute Over When the Arrears Originated
The latest documents have become central to the political disagreement over whether the outstanding entitlements can properly be attributed to Obi’s administration.
The Soludo camp argues that the continued settlement payments demonstrate that unresolved workers’ liabilities remained after Obi left office in 2014.
Obi’s camp, however, has disputed the characterization. His supporters maintain that his administration inherited substantial salary, pension and gratuity arrears from earlier administrations and cleared billions of naira in outstanding obligations during his tenure.
They have also argued that some of the liabilities involving workers of the defunct agencies originated before Obi became governor in 2006.
The settlement documents establish that the Anambra Government entered into an agreement in 2024 to resolve the outstanding claims and that a second payment of ₦363.381 million was subsequently released.
However, the documents themselves do not conclusively establish that all the underlying arrears were incurred during Obi’s tenure.
NEWS
Ogun Deep Seaport: Abiodun Thanks Tinubu, Says 30-Year Dream Becoming Reality
Ogun State Governor, Dapo Abiodun, has expressed appreciation to President Bola Ahmed Tinubu for his support towards the realisation of the Gateway Deep Seaport and Blue Marine Special Economic Zone in the state.
Abiodun described the deep seaport project as a long-standing vision that had been proposed and documented for nearly 30 years but remained unrealised until the intervention of the Tinubu administration.
ALSO READ: FG Preaches Support for Dangote Industrial City, Deep Seaport in Ogun, Ondo States
The governor, in a statement on Friday, acknowledged Tinubu as the “Facilitator-in-Chief” of the transformational project, crediting the President’s leadership and provision of strategic direction for helping to revive the initiative.
According to Abiodun, the vision of establishing a deep seaport along Ogun State’s coastline had been discussed and captured in official documents for decades, but had remained on the drawing board.
“Today, through the foresight, courage and determined leadership of President Tinubu, that long-standing aspiration is finally being transformed into reality,” the governor said.
Abiodun said the Gateway Deep Seaport and the Blue Marine Special Economic Zone would open a new chapter for Ogun State while strengthening Nigeria’s position in global trade, maritime commerce, industrialisation and economic development.
He added that major national projects require political will and leadership capable of turning long-standing plans into tangible development.
The governor also commended the Federal Government for what he described as its unwavering support and commitment towards making the project a reality.
“Posterity will indeed be kind to you, Mr. President,” Abiodun said.
The Gateway Deep Seaport project is expected to form part of Ogun State’s broader strategy to expand maritime infrastructure, attract investment and strengthen industrial and commercial activities along its coastline.





