Business
Aviation Tax Removal Requires Govt Consensus, Says Keyamo
Minister of Aviation and Aerospace Development, Festus Keyamo, has stated that the removal of taxes in the aviation sector cannot be decided by one individual, noting that such policies are subject to collective government approval and legislative review.
He said this at an event in Abuja on Monday, celebrating 100 years of aviation in Nigeria. The minister clarified that despite industry pressure over multiple taxation, tax removal lies beyond the jurisdiction of the aviation ministry alone. He stressed that statutory levies require input from key institutions, including the Ministry of Finance, tax authorities, and the National Assembly.
“You can see that I am not the owner of Nigeria. There’s a Ministry of Finance. There’s a tax authority. The Minister of Aviation cannot wake up overnight and say, I’m removing taxes. It’s a whole ecosystem, a whole government system that will meet on that. Some of these things are statutory; they are laws already.”
He explained that the legislature must also deliberate on tax adjustments before they can be enforced. According to him, President Bola Tinubu has already shown commitment to addressing tax burdens in the industry.
The National Assembly will be involved too, to remove some of these from the laws. But let me tell you, Mr President himself is so proactive. For the laws that are not taking place, for example, the tax law that was about to take place, he immediately excluded aviation, the four percent tax. The money could have been higher.”
Keyamo added that a review process is now in motion to tackle multiple taxation affecting airline operations.
“The President has set up a team to review all of these multiple taxations. And so we are getting the ball rolling.”
He maintained that the minister alone cannot abolish statutory taxes. “I, as aviation minister, cannot stand up overnight and remove this tax, because I’m not the owner of Nigeria. I’m not the owner. It’s the federal government that owns this money. So we are getting there.”
Beyond taxation, Keyamo highlighted the infrastructure deficit as the biggest challenge facing Nigeria’s aviation growth. He said the country must develop fully functional airport hubs capable of handling seamless international transit.
“The big elephant in the room is infrastructure. We need to convert our major gateways to proper hubs where you can fly in, go through a process of processing you without even entering the country, into another wing, and then you board again and fly out. Now, we have airlines that have the capacity. They are already doing international routes.”
He argued that Nigerian airlines like Air Peace could operate more profitable, long-haul connecting routes if modern hub systems were in place.
“So, for instance, there’s no reason why Airpeace cannot take you from London. If you are coming to Nigeria, or if you are a resident in London, you can buy an Airpeace ticket going to South Africa. And so they lift you from London, they bring you to Nigeria. You don’t need to come to Lagos. We need that facility to process you into the next wing, and you board the same Airpeace, you are connecting to South Africa.”
He added that domestic carriers rely heavily on such infrastructure to expand their operations. “So we need, first of all, infrastructure to develop proper hubs to assist our airline. Because they also need the hubs. Without those infrastructures, they cannot grow in a way to fly.”
Keyamo listed finance and aircraft leasing access as the second major obstacle to airline growth. “The second one is to ensure that we empower the airlines to have access to credits, access to financing, and access to lease aircraft. These are the two major problems. If not, the problem is not in the traffic.”
Despite current challenges, he maintained that market capacity, population, and location are in Nigeria’s favour. The new tax reform law, recently passed as part of the federal government’s fiscal restructuring, has consolidated several tax statutes into a unified framework aimed at widening revenue generation and reducing administrative overlap.
However, the aviation industry has expressed concern over the removal of certain long-standing exemptions, including duties on aircraft parts and components, VAT on tickets, and levies affecting airline operations.
Petrol and cooking gas prices declined year-on-year in December 2025, signalling a gradual easing of household energy costs, according to separate reports released by the National Bureau of Statistics (NBS).
Naija News reports that data from the bureau showed that both Liquefied Petroleum Gas (LPG), commonly used for cooking, and Premium Motor Spirit (PMS), also known as petrol, recorded notable price reductions compared with December 2024, alongside modest month-on-month declines.
The NBS noted that while the downward trend was observed across most states and geopolitical zones, prices continued to vary widely depending on location.
5kg Of Cooking Gas Price Drops By 25%
According to the report, the average price for refilling a 5kg cylinder of LPG declined by 1.20 per cent month-on-month, falling from ₦5,425.78 in November 2025 to ₦5,360.43 in December 2025.
On a year-on-year basis, the price fell sharply by 25.31 per cent, down from ₦7,177.27 recorded in December 2024.
Confirming the trend, the NBS stated, “The average retail price for refilling a 5kg cylinder of Liquefied Petroleum Gas (Cooking Gas) decreased by 1.20 per cent on a month-on-month basis,” adding that the year-on-year decline stood at 25.31 per cent.”
A state-level analysis showed that Kaduna recorded the highest average price for refilling a 5kg cylinder at ₦5,838.66, followed by Jigawa at ₦5,825.09 and Osun at ₦5,777.80.
On the lower end, Katsina recorded the cheapest average price at ₦4,855.80.
Similarly, the average retail price for refilling a 12.5kg cylinder of LPG fell by 0.74 per cent month-on-month, declining from ₦13,538.79 in November 2025 to ₦13,438.90 in December 2025.
Year-on-year, the price dropped by 22.20 per cent from ₦17,274.16 recorded in December 2024.
On a state-by-state basis, Abia recorded the highest average price for refilling a 12.5kg cylinder at ₦14,489.96, followed by Osun at ₦14,444.50 and Delta at ₦14,393.17, the bureau said.
Petrol Price Dips To ₦1,048
The NBS also reported a decline in the average retail price of petrol.
According to the report, the average price of Premium Motor Spirit stood at ₦1,048.63 in December 2025, representing an 11.81 per cent decrease compared with ₦1,189.12 recorded in December 2024.
The bureau stated, “The average retail price paid by consumers for Premium Motor Spirit (Petrol) for December 2025 was ₦1,048.63.”
On a month-on-month basis, petrol prices declined by 1.20 per cent, down from ₦1,061.35 recorded in November 2025.
Further analysis showed that Kogi State recorded the highest average petrol price at ₦1,104.45, while Oyo State had the lowest at ₦996.55.
Regionally, the North East emerged as the most expensive zone for petrol, while the South West recorded the lowest average prices.
Nigeria’s naira recorded one of its strongest performances in months on Tuesday, January 27, 2026, appreciating sharply against the US dollar at the official foreign exchange window amid improving liquidity and rising confidence in the country’s FX reforms.
The local currency strengthened to around ₦1,400 per dollar at the official market, marking its firmest level since the Central Bank of Nigeria (CBN implemented sweeping FX reforms.
The move signals easing pressure on the naira and renewed optimism among investors and market participants.
According to the CBN’s daily foreign exchange report, the naira closed at ₦1,401.22 per dollar, representing a 1.27 percent appreciation on the day.
Market operators described the move as a reflection of improved dollar supply and stronger participation by banks and other authorised dealers.
Traders said the official window saw increased volumes, with the improved liquidity helping to narrow volatility and reduce speculative demand.
The latest performance reinforces the view that the reforms aimed at unifying exchange rates and improving price discovery are beginning to yield results.
The positive momentum extended to the parallel market, where the naira also posted modest gains.
Channel checks showed the local currency appreciating by about 0.33 per cent to trade around ₦1,476 per dollar. While the gap between the official and parallel rates remains, analysts say the narrowing spread reflects improving confidence across both the regulated and informal segments of the FX market.
According to a report by MarketForces Africa, reduced arbitrage opportunities and stronger supply conditions are helping to stabilise pricing.
The naira’s rally comes against the backdrop of rising external reserves, which have strengthened the CBN’s ability to intervene when necessary and support market liquidity.
Higher reserves are widely viewed as a key confidence signal for foreign investors, particularly portfolio investors who remain sensitive to currency risk.
Market watchers say consistent inflows from export earnings, improved remittance flows, and cautious monetary management have all contributed to the improved outlook for the naira in recent weeks.
Clarivo Oil and Gas, led by Chief Obidike Chukwuebuka, has announced plans to build a world-class oil refinery in Calabar, Cross River State, aimed at boosting Nigeria’s downstream oil and gas sector.
Speaking to journalists, Chief Obidike said the project will be implemented in phases, in collaboration with foreign partners to bring advanced technical expertise and international industry standards.
The planned refinery will feature state-of-the-art technologies, including crude distillation, catalytic cracking, and hydrotreating units, enabling the production of high-quality petroleum products such as petrol, diesel, and aviation fuel.
The phased approach will begin with feasibility studies and front-end engineering design, followed by construction of core processing units, and conclude with installation of secondary units and commissioning.
Chief Obidike noted that the refinery aims to increase domestic refining capacity, reduce dependence on imported petroleum products, and enhance Nigeria’s energy security. He added that the project is expected to create significant employment across engineering, construction, operations, and logistics, while facilitating technology transfer through partnerships with international EPC contractors and investors.
On funding, he revealed that agreements with foreign stakeholders are being finalized to provide both technical and financial support. The refinery is projected to come online within five years, following the completion of all project phases and regulatory approvals.
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