Allen Onyema, the Chairman and CEO of Air Peace, has announced that domestic airline operators in Nigeria are requesting a meeting with President Bola Tinubu to discuss the industry’s instability. During a June 23, 2026, interview on Arise News, Onyema highlighted that exorbitant aviation fuel prices, high interest rates on loans, and excessive government levies are pushing carriers to the brink.
Onyema explained that these difficulties are linked to global geopolitical tensions involving the United States, Israel, and Iran, which have inflated fuel costs internationally. He remarked that Nigerian airlines are struggling financially, with many taking out massive loans simply to secure fuel and maintain operations. Since Nigeria has seen over 70 airlines fail throughout its history, Onyema emphasized that the sector faces one of the world’s highest mortality rates.
A major point of contention for Onyema is the five per cent Ticket Sales Charge collected by the Nigerian Civil Aviation Authority. He argued that this tax is unsustainable because it exceeds the profit margins typically generated by aviation services. He is urging the President to form a committee to review these levies to prevent further business closures. Onyema warned that if the industry collapses, the resulting job losses and financial instability would negatively impact the Nigerian economy and the banking sector.
