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Home BUSINESS & FINANCE

Nigerian Airlines Face Existential Crisis, Onyema Warns

by Lawani
08/08/2026
in BUSINESS & FINANCE, Headline
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Nigerian Airlines Face Existential Crisis, Onyema Warns
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Chairman of Air Peace, Allen Onyema, has warned that Nigeria’s domestic aviation industry is facing an existential crisis, urging the Federal Government to take urgent measures to prevent several airlines from collapsing within the next 30 days.

Onyema raised the alarm at the launch of Pathways, Pilgrimage and Destiny, the biography of Med-View Airline Chairman, Muneer Bankole.

According to him, the financial pressures confronting domestic carriers have reached a critical point, requiring immediate intervention from the government and industry stakeholders.

Onyema specifically addressed the dispute surrounding the five per cent Ticket and Cargo Sales Charge (TSC), arguing that the disagreement was not because airlines were unwilling to meet their obligations but because of the difficulties created by the existing collection system.

He called for dialogue between airline operators and the government to develop a simpler and more transparent method of collecting the levy.

One option, he suggested, would be the introduction of a fixed unit charge that would eliminate disputes over which components of ticket prices should be subject to the levy.

Onyema stressed that operating an airline in Nigeria requires huge capital investment while generating relatively low returns, making the current financial pressures particularly dangerous for operators.

He warned that without drastic measures within the next 30 days, several airlines could be forced out of business.

The Air Peace chairman also criticised threats by labour unions to picket airlines over the dispute, describing the development as unusual and potentially harmful to an already fragile industry.

READ ALSO: INEC Boss Pledges Credible 2027 Polls, Says Every Vote Will Count

He maintained that airlines had continued to engage with the Nigerian Civil Aviation Authority (NCAA) and the Federal Ministry of Aviation and Aerospace Development in efforts to resolve outstanding issues.

Onyema listed several challenges affecting Nigerian airlines, including high borrowing costs, inadequate aviation infrastructure, bird strikes and multiple operational charges, which he said continue to increase the cost of running airlines.

He argued that using labour unions to pressure airlines over financial obligations was inappropriate, stressing that government agencies should pursue established channels for resolving debt-related matters.

The businessman recalled that more than 50 Nigerian airlines have collapsed over the years, despite many of their owners remaining successful in other sectors of the economy.

He urged the Federal Government to act quickly to prevent another wave of airline failures and introduce policies that support rather than undermine domestic carriers.

Onyema expressed confidence in President Bola Tinubu’s commitment to supporting Nigerian airlines and called for stronger policies capable of creating a sustainable environment for the country’s aviation industry.

He said protecting domestic carriers was essential not only for the survival of the airlines but also for the growth and long-term stability of Nigeria’s aviation sector.

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