IATA urges NASS to rescue Nigeria’s airlines as costs, global tension bit

 

 

Maureen Aguta

The International Air Transport Association (IATA) has issued a strong warning to Nigeria’s lawmakers, urging urgent legislative intervention to safeguard the country’s struggling airlines amid mounting global and domestic pressures squeezing profitability.

Speaking at the 50th Annual General Meeting of the National Association of Nigeria Travel Agencies (NANTA) in Ibadan on Thursday, IATA’s Area Manager for West and Central Africa, Samson Fatokun, said Nigerian carriers are operating on razor-thin margins and require deliberate policy protection to survive.

Fatokun stressed that while the aviation sector contributes about $2.5 billion—roughly 0.7 per cent—to Nigeria’s Gross Domestic Product, the operating environment remains among the harshest globally, threatening both sustainability and growth.

He pointed to a convergence of cost pressures that disproportionately affect African airlines.

 

According to him, Jet A1 fuel prices on the continent are about 17 per cent higher than global averages, while taxes, charges and fees exceed those in other regions by between 12 and 15 per cent. In addition, air navigation charges are roughly 10 per cent higher, and airlines incur six to 10 per cent more in aircraft maintenance, insurance and cost of capital.

“These structural disadvantages translate directly into higher ticket prices and weaker competitiveness,” he said, noting that African governments are also holding back an estimated $954 million in airline funds, further constraining cash flow.

Fatokun warned that global instability—particularly the ongoing tensions involving Iran, Israel and the United States—has already disrupted industry projections for 2026, compounding the challenges facing operators.

Against this backdrop, he called on the National Assembly to enact supportive legislation and engage the Federal Government to create a more enabling environment for domestic carriers.

“We need to protect our carriers. Airlines are operating on very thin profit margins, and without policy support, their survival is at risk,” he said.

Responding, Chairman of the Senate Committee on Aviation, Abdulfatai Buhari, urged industry stakeholders to formally present their concerns to lawmakers, assuring that the National Assembly is prepared to act.

Buhari also took aim at foreign airlines operating in Nigeria that insist on dollar-denominated ticket sales, describing the practice as harmful to the local economy. He singled out carriers such as Delta Air Lines, United Airlines and Emirates.

“How can airlines operate in Nigeria and refuse to transact in naira? No airline would attempt that in countries like India,” he said, calling for coordinated action to curb the trend.

He emphasized that legislative intervention alone would not suffice without active collaboration from industry players, particularly travel agencies.

Earlier, NANTA President, Yinka Folami, pledged that the association would intensify efforts to sanitise the sector, including tackling the persistent issue of touting, which he said undermines professionalism and consumer confidence.

With cost pressures rising and global uncertainties deepening, stakeholders say Nigeria’s aviation sector stands at a critical juncture—one that will require decisive policy action to prevent further strain on indigenous carriers and to secure the industry’s long-term viability.