AON wants review of aviation taxes and peaceful economic boycott of South Africa

The Airline Operators of Nigeria (AON) has asked President Bola Tinubu to set up a committee to review taxes and charges in the aviation sector. They warned that high levies have led to the collapse of many Nigerian airlines.

AON Vice-President and Chairman of Air Peace, Allen Onyema, made this request during an interview on Arise Television on Tuesday. He also suggested a peaceful economic boycott of South Africa due to ongoing xenophobic attacks on Nigerians and other foreigners.

Mr. Onyema pointed out that some charges on airlines are too high, especially the five percent passenger service charge collected by the Nigerian Civil Aviation Authority (NCAA). "One of the truths we want to tell Mr. President is regarding this five percent passenger charge collected by the NCAA," he said.

He continued, "When we speak, they will say passengers are the ones paying, but we refuse to accept that. If I charge N100,000, NCAA takes five percent of that money. We did not set up the business with them."

Mr. Onyema urged the president to create an aviation taxes and charges review committee made up of independent professionals, aviation experts, and industry operators. "We want the President to set up an aviation charges and taxes review committee. It is very important. These taxes and charges have been responsible for the demise of many airlines in the country," he lamented.

Earlier, the NCAA had put 11 domestic airlines on a “no-pay-no-service” list due to unpaid obligations. However, enforcement was later put on hold after concerns about rising operational costs and the stability of the industry.

Concerns about the Industry

This latest request comes as worries grow about the financial situation of domestic airlines. PREMIUM TIMES reported that Nigerian airlines are increasingly relying on bank loans to keep running as high aviation fuel prices continue to hit the industry hard. Mr. Onyema revealed that operators are borrowing heavily to survive, even after a recent drop in the price of Jet A1 by the Dangote Petroleum Refinery.

Beyond aviation, Mr. Onyema called on Nigerians to think about an economic boycott of South Africa over ongoing xenophobic violence against Nigerians and other foreign nationals. He condemned the attacks but rejected calls for violent responses against South African businesses in Nigeria, insisting that any reaction should be peaceful and lawful.

"I totally agree that there should be a stop to foolishness. Accusing South African authorities of repeatedly failing to protect foreigners during outbreaks of xenophobic violence," he said. He added, "Every time they do this, and they get the support of their government, I don’t understand how all of a sudden South Africa lacks a police force, lacks the military, lacks every security agency that could have stopped these people."

Mr. Onyema also criticized cases where foreigners are allegedly profiled and harassed. "How do you explain a situation where people would march into somebody’s house, bring you out, question you, ‘Can I see your papers? You’re a foreigner, you have to go back home?'

He noted that many Nigerians living in South Africa are investors and employers contributing positively to the economy there. "He brought money from Nigeria and opened a shop in your country to help your country and help you. The best you could have done is to learn from these Nigerians and acquire some entrepreneurial skills," he said.

Despite his strong criticism of the South African government's handling of xenophobic attacks, Mr. Onyema warned against targeting South African-owned companies in Nigeria. He pointed out that many Nigerians also have investments in these businesses. "I don’t want Nigeria to close down MTN or other companies. Don’t Nigerians have shares in those companies? After all, those people are Nigerians too. I don’t want that," he said.

Instead, he suggested a more effective approach: withdrawing investment and support from South Africa. "The kind of retaliation I want is for Nigerians to boycott South Africa. Don’t invest in that country," he said.

He believes that pulling economic support would send a stronger message than violence or protests. "If you decide to go against me, the only thing I can do to you is withdraw my support from you. I don’t have to support you to use it to finish me. That is the kind of retaliation I want. That is the most powerful. If they want to invest in our country, let them bring their money and invest. And determine how they take the money back. That is non-violent action," he noted.