Photo caption : From left Capt Rowland Iyayi, President/CEO, Topbrass Aviation Ltd; Capt. Ado Sanusi, MD/CE, Aero Contrators of Nigeria Ltd; Dr Nneka Onyeali-Ikpe, MD/CE, Fidelity Bank; Dr Alex Nwuba, President, Aircraft Owners and Pilots Association of Nigeria; Mrs Adenike Macaulay, CEO, Wakanow Nigeria and Mr George Uriesi, CEO, Ibom Air at the second day of FAAN National Aviation Conference held at Eko Hotel, Victoria Island Lagos on Tuesday
The Managing Director and the Chief Executive Officer of Ibom Air, George Uriesi has appealed to the Federal Government to reduce the number of multiple charges paid by the domestic airlines in the country if they must be profitable.
He said this at the Day 2 of the 2025 Federal Airports Authority of Nigeria(FAAN) National Aviation Conference (FNAC) with the theme,”Elevating the Nigerian Aviation Industry Through Investment, Partnership and Global Engagements” yesterday.
Presenting a paper titled, ” Airline Profitability and Cost Optimisation.” as one of the Keynote Speakers at the event, Uriesi, said that
aircraft acquisition is the biggest airline cost and that Nigerian airlines operate the same aircraft with its peers globally,
He, however a acknowledged the recent efforts made by the Federal Government and the changes brought about by these interventions.
He asserted that Nigerian airlines pay high insurance costs despite using the same equipment with its global peers and with equal levels of risk, adding that Nigerian airlines pay twice the insurance cost for insurance policy in other aviation climes
Uriesi said that the airline also again, acknowledged recent efforts made to address the issue and the changes brought about as a result of the efforts made.
He lamented that the domestic airlines operators are operating within.a systematic limiting environment.
He added that Nigerian airlines also operate under infrastructure limitations, inefficient, Air Traffic Controllers (ATC) procedures, unlimited charges and taxes imposed on airlines.
To buttress his point, Uriesi use the Lagos-Accra route as an example.
He said that on Lagos –Accra route, before the airline fix the price of its ticket, it already has taxes worth $185 to pay, adding that by December 1,2025 the Nigerian Civil Aviation Authority (NCAA) will be adding additional taxes which will bring it to a total $200, wondering why the taxes is on the high side when other cost have not been added .
He said that by the time the airline add other costs such as fueling, ground handling, overflying charges among others, the price of the ticket is already beyond the reach of the average Nigerian .
The Ibom Air Managing Director stated that besides these, the airline has to set its ticket prices, which according to him must cater for the operating costs, which includes : fuel, ground handling, landing fees, overflight charges, among other, adding that the ticket is not only bound to be high but will also be out of the reach of the average Nigerian.
He pointed out that in view of these challenges, pricing will be continue to remain ‘heavy’ and discourage people from flying.
The Managing Director said that while airlines earnings are in Naira, airlines’ major costs such as maintenance, insurance amount Ng others are carried out in the United States Dollars.
Nigerian airlines, he informed are also expected to pay Import tariffs, Value Added Tax (VAT)pension contributions, which is 10 per cent from the employer and 8 per cent from the employee, contribute to the National Social Insurance Trust Fund (NSITF) and the Industrial Training Fund (ITF).
On how a Nigerian airline can navigate this ‘obstacle course and achieve profitability, Uriesi opined that the carrier must work to secure internationally competitive aircraft financing and equitable insurance costs.
The airline,he further said must work to achieve in-house (or at least in country) aircraft maintenance, increase productivity by better aircraft utilisation and enhance efficiency through fleet optimisation.
To be able to compete and remain profitable, he advised airline operators in their on interest not to stay small for two long as this wil be disadvantageous to their operations.
On the obstacles out of our control of the airlines that are affecting their operations, he said,
“Plead with government to help reduce the plethora of fees and charges.Lobby strongly for reduction of the exorbitant regional fees and charges.”
“We can change the game in Nigeria if and when we really want to… It’s about having the will… If and when we eventually do have the will, we will make the way,” Uriesi added.
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