Musa Adede: High Taxes, Cost of Aircraft Maintenance Overseas Impinge on Viability of Airline Business in Nigeria

Senator Musa Adede, owner of King Airlines Limited, one of the oldest business jet companies in Nigeria, said to make Nigerian airlines grow and become profitable, government must have to cut down taxes paid by the operators. He also spoke on air safety; high cost of aircraft checks and the need to have more domestic aircraft maintenance facilities in Nigeria. Chinedu Eze brings excerpts:

How does Nigeria compare with other African countries in terms of aviation costs and infrastructure?

 Nigeria ranks among the most expensive countries in Africa for air travel. According to the African Airlines Association (AFRAA) reports, we are third or fourth in charges. Meanwhile, countries like South Africa, Ethiopia, and Senegal have modernised their airports during COVID-19, improving efficiency and passenger experience. To compete regionally, Nigeria must prioritise airport upgrades, streamline fees, and support airlines with domestic MROs and equipment concessions.

What recommendations would you give the government to strengthen the aviation sector?

There are key recommendations that will help the aviation industry. These recommendations are reduction of taxes and levies on passengers and airlines to improve profitability, support for domestic Maintenance Repair and Overhaul (MRO) development through concessions and customs exemptions, upgrade of airport infrastructure to international standards to include boarding bridges, lifts, conveyor belts, control towers, and air conditioning systems. There is need to ensure that regulatory oversight remains transparent, consistent, and effective.

There should be harmonisation of regional fees and procedures to support initiatives like the Single Africa Air Transport Market (SAATM). With these measures, airlines can operate more efficiently, enhance safety, reduce capital flight, and compete regionally and internationally. You see, many stories are written about aviation problems, but a few propose genuine solutions. Some urgent priorities include the construction of a second runway at Abuja airport for overflight and security reasons; ensuring all airports operate 24 hours with proper lighting and encouraging foreign airlines to employ qualified Nigerian pilots and staff, given the number of unemployed qualified Nigerians in this sector.

You talked about additional MRO development; are the domestic MROs that we have currently insufficient?

Yes. Domestic MROs—including the one in Uyo, Akwa Ibom State, ExecuJet, and Aero—are necessary but not enough. Sending aircraft abroad for maintenance is expensive and inefficient. Domestic facilities allow airlines to oversee maintenance work directly, reduce aircraft downtime, build local expertise and enhance safety. MROs handle avionics, wheels and brakes, landing gear, and structural checks. Major inspections involve disassembling interiors, inspecting for corrosion, reassembling, and test flights. There should be government support through customs concessions. This is vital to encourage investment and reduce costs.

What is the role of domestic aircraft maintenance facilities in improving the aviation industry?

Domestic MROs reduce capital flight, create jobs, and enhance safety by keeping aircraft maintenance local. Airline engineers can monitor work directly, ensuring quality and transparency. The government should provide incentives, such as customs exemptions on equipment, to encourage investment in MRO facilities. This supports training, local expertise development, and faster aircraft turnaround times. I am sure you have been to Dubai. Do you see the number of aircraft maintenance hangars?  I don’t think the MROs we have, including what Air Peace is going to build, is too much.

No, it’s not. Okay. If you know the amount of money airlines spend to fly airplanes out of the country for maintenance and fly them back. If you look at the fuel costs, if you look at the maintenance itself, if you look at the crew costs, landing, all of that, having MRO here is good. To ferry a plane to and fro empty is costing you a lot of money. You may ferry the airplane there for maintenance and they finish fixing it, but on your way back, you can lose your radar. If you are not too far from your point of departure, you may have to go back there for them to fix it. Because you can’t continue, let’s say, from Johannesburg to Lagos or from London to Lagos. It is impossible. But if you have the MRO here, you have to understand the concept of an MRO. There are different departments in the maintenance of the organisation.

  How will government aviation reforms, lessors offering Nigerian airlines aircraft on dry lease arrangement, impact the industry?

Dry lease arrangements are a positive step, but not a complete solution. Airlines still face high operational costs due to taxes, levies, and infrastructure limitations. Airport upgrades are also essential. For example, runways 18L and 18R at Lagos airport could be extended for 24-hour operations. Many African countries have modernised airports efficiently during COVID-19, but Nigeria has lagged behind.

Upgrading Murtala Muhammed International Airport (MMIA) and other airports involves relatively simple interventions: boarding bridges, conveyor belts, lifts, and air conditioning. These improvements enhance efficiency, safety, and passenger experience without requiring entirely new construction.

How do taxes and other costs of operation impact on Nigerian airlines’ viability?

Nigerian airlines face high taxes and levies, which reduce profitability. For example, on a ticket to Accra, taxes may exceed $180, while the airline earns less than $100. Despite these constraints, airlines remain operational, expand routes, and invest in infrastructure. Profit margins in aviation are typically only 2–3%, so minimising operational costs is essential for sustainability.

Recently, a former Governor of Abia State and Senator representing Abia North Senatorial District, Orji Uzor Kalu, made a serious allegation that most Nigerian pilots are under the influence of alcohol. What raced through your mind when you read his allegations on the floor of the Senate?

The reason you have two crew members in the cockpit is for safety reasons. And if you find that one of them is under alcohol, then you have to inform the crew member, the other flight crew members, because it’s a safety matter. And not many people know that all over the world, there are regulations guiding flight operations. So, when you see a pilot coming in to fly, that pilot must have maintained a minimum crew rest period.  Under which he must never be under any alcoholic influence or drugs. But in the event that it is found, then you have to report it. And in this case, if Senator Oji Uzor Kalu found someone, did he report that pilot on that flight or did he allow the flight to continue?

That is question number one.  If any of these two questions were answered in the affirmative or otherwise, the next thing he would have done, having been an operator before, he owned Slok Airlines before, he would have brought this to the notice of the leadership of the Senate and the Senate committee chairman on aviation, where they would have further taken this matter up with the Nigerian Civil Aviation Authority, which is the regulatory body for all of this, and to fish out that person. If found guilty, disciplinary action will be taken.

We have seen it in foreign airlines. They catch a drunk pilot, they take appropriate action, and you are suspended. I am not holding brief for Captain Najomo, but I know that he’s a very seasoned captain in the industry. He has managed scheduled airlines. He has flown as a captain himself. He has been the CEO of a company. He knows the regulations. So, he would never compromise on safety when it comes to safety of airplanes. Therefore, I think Orji Uzor Kalu owns the industry details of whoever he found in that state, because that is the only way he can save the industry, by reporting the matter.

That in my mind that is what I think he would have done.  In recapping, was it wrong for him to come to the floor of the Senate to make such allegations? You must first explore all the opportunities, especially when you have not provided the evidence. If you are on the floor of the Senate and you have said, B737-500 flying with me, and the pilot’s names are on so and so date, then it now shows that he has come up with factual information. Even though he may still have factual information, he still owes the Civil Aviation Authority the duty to inform them of who that individual was, so that they can take appropriate action.

I think that is one thing that should have gone. And then he also talked about our pilots not being able to fly even a B737-500. They are on automatic. I don’t know if you remember. With these kinds of remarks made by my friends, it will send negative messages and signals to not just the lessors, but also the insurance companies and others. Our insurance premiums are extremely high in Nigeria. This kind of statements should be curtailed. We should learn to manage information in a way that it will not create problems for the industry. But of course, yes, I must say that the minister has done so much.

Several states are establishing airlines—Enugu, Bayelsa, Ogun (planning Gateway Airlines), Cross River, and Akwa Ibom are already established. Some critics see this as money laundering, though aircraft importation has increased domestic passenger capacity and may have helped reduce ticket costs. How do you see it?

Since the removal of fuel subsidy, state and local governments have seen significant windfalls. In some cases, their FAAC allocations have probably quadrupled. With full local government autonomy granted by Mr. President, these allocations now go directly to the local governments. Given the type of country we are, every businessman—especially foreigners operating here—has proposals on how to spend their money. For some, investing in aircraft becomes a viable option. The importation of aircraft has indeed increased passenger capacity domestically and may have helped temper ticket prices compared to the past.

There are insinuations in some quarters that Nigerian pilots are not capable of operating automated aircraft like the Boeing 737-500. This sounds unbelievable; but as an airline and aircraft owner, what is your take on this?

Some statements about pilots not being able to operate the Boeing B737-500 are inaccurate. The B737-500 is equipped with an Automatic Flight Control System (AFDS), which supports autoland—but only if the aircraft has the autoland option installed and the destination airport has a suitable Instrument Landing System (ILS), certified for Category II or III operations. For example, Abuja Airport is Category II certified, while Lagos is not. So, the aircraft’s ability to perform an automatic landing depends on both its equipment and the airport’s infrastructure. The Nigeria Civil Aviation Authority (NCAA) strictly enforces regulations, ensuring that aircraft meet minimum equipment requirements. Mandatory systems like the Traffic Collision Avoidance System (TCAS) are essential for safe operations.

Why are there runway overshoots at the Port Harcourt Airport?

Well, how many airplanes have overshot the runway in Port Harcourt in one year? Overshoots often result from approach errors, especially during wet conditions or instrument failures. Pilots may descend too late or land too high, increasing the risk of aquaplaning. Proper Crew Resource Management (CRM) is crucial. CRM ensures pilots communicate effectively, follow procedures, and coordinate with air traffic control during emergencies. Simulator training and regulatory inspections reinforce these skills. First Officers must complete minimum flight hours before assuming command, ensuring that pilots are competent to handle emergencies or incapacitated crew situations. Safety and effective coordination remain paramount.

  What is the primary function of the flight crew in addition to operating the equipment?

The primary function of the flight crew is safety. In the event of an emergency, they assist in passenger evacuation and guide what to do. Crew members also play a critical role in managing cockpit security. For example, in foreign airlines, if one pilot leaves the cockpit, an air hostess may enter to monitor the remaining pilot, ensuring no unsafe actions occur. This practice safeguards against incidents caused by incapacitated or unstable pilots. The reason for having two pilots in the cockpit is purely for safety. If a pilot is found under the influence of alcohol or drugs, it is mandatory to report it to the other crew members and to regulatory authorities like the Nigerian Civil Aviation Authority.

Seasoned captains, like Captain Chris Najomo (Director General, NCAA), understand these regulations deeply and would never compromise passenger safety. Any observed breach must be reported to ensure the integrity of the industry. But also, if a pilot is incapacitated, some pilots has had a heart attack, the other pilot should be able to take that aircraft to the nearest airport and land safely. That is why it is important for synergy, and it is called crew resource management, for pilots to be able to work together and to fly the airplane efficiently. Or in the event that you have a snag in the aircraft, and you’re already flying, it is the responsibility of the two of them to be able to communicate effectively and to refer to manuals, okay, on what emergency to take. Then you must also be able to inform the air traffic control within which you are flying that, due to weather or due to holidays, we want to descend from level 410 to level 280 or something like that.

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