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FG Introduces 30% Discount to Ease Aviation Costs, Says Keyamo

David Azubuike by David Azubuike
June 19, 2026
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The Federal Government has approved a 30 per cent reduction in statutory charges for domestic airline operators in a move aimed at reducing operational costs and improving efficiency within Nigeria’s aviation industry.

Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this while speaking at the African Air Transport Expo 2026 organised by the African Civil Aviation Commission (AFCAC) in Lomé, Togo.

The minister, in a statement issued by his Special Adviser on Media and Communications, Tunde Moshood, said the initiative reflects Nigeria’s broader commitment to repositioning aviation as a key driver of economic growth rather than a revenue extraction channel.

According to him, the policy also forms part of ongoing reforms targeting VAT neutrality in aviation services and the elimination of multiple or duplicated charges imposed on airline operators.

“Aviation is an economic enabler, not a revenue collection point. Nigeria is aggressively driving down costs through a 30 per cent discount on statutory fees for domestic operators approved by Mr. President, transitioning towards VAT neutrality, and auditing duplicate levies,” Keyamo was quoted as saying.

He explained that reducing cost pressures on airlines would help improve route expansion, passenger affordability, and overall industry sustainability, especially at a time when African aviation markets are seeking stronger integration.

Keyamo also used the forum to call for a shift from policy declarations to practical implementation across the continent, stressing that Africa’s aviation growth depends on measurable outcomes rather than signed agreements that are not fully operationalised.

He emphasised the need to expand air connectivity within Africa, noting that improved market access and fewer restrictions would boost intra-African trade, tourism, investment flows, and regional integration.

“We must move from signatures to actual traffic rights. Over the next 24 months, Nigeria will streamline permits for African carriers, align air agreements, and lead the Banjul Accord Group to progressively treat West Africa as a unified domestic market,” he said.

The minister further urged African governments and aviation stakeholders to prioritise tangible results such as increased flight routes, reduced regulatory bottlenecks, and higher passenger volumes, describing these as the real indicators of progress in the sector.

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