Market News

By Joke Falaju, Abuja

Chairman of United Nigeria Airlines, Prof. Obiora Okonkwo, has attributed high airfares in Nigeria to the over 20 taxes paid on every ticket as well as the astronomical rise in foreign exchange.
 
Okonkwo, while speaking on a television programme monitored by The Guardian, said airlines operating in Nigeria were burdened by multiple taxation and a harsh forex regime, which stands at about N1,605.00 to one dollar.

He lamented that the challenges were impacting negatively on local airlines, as operators had to buy spares and fix their aircraft in dollars, even without increases in the cost of such spares abroad. He stressed the need for government to act fast to salvage the industry as the forex regime might further push up ticket prices.

“The taxes are just too many; for every ticket that we sell, we have about 20 to 22 deductions. Some are even repetitions. We have been crying out and no one is even asking to know what the issues are and how to resolve them. We are worried about it f nothing is done, and quickly too, things will get worst.

“We just came back from South Africa on an IATA (International Air Travel Association) conference and it is on record that Nigeria still has the highest cost of aviation services. Every airline here pays higher than what is paid by their peers in the western world, and we the local operators are victims of these,” he said.