By Joan Nezi | AWC Business & Policy Desk, Lagos
The Federal Government has announced a major policy shift in the aviation sector as the Minister of Aviation and Aerospace Development, Festus Keyamo (SAN), revealed that Nigeria has now approved duty-free importation status for aircraft spare parts.
The move, according to the Minister, aims to reduce maintenance costs for local airlines, boost safety compliance, and encourage fleet expansion in Nigeria’s struggling aviation industry.
Speaking at a press briefing in Abuja recently, Keyamo explained that the duty exemption was part of broader efforts to “create a more business-friendly environment for airline operators,” many of whom have been hampered by high operating costs, multiple taxation, and foreign exchange constraints.
“This administration understands the critical importance of air transport to the economy,” Keyamo stated. “Removing import duties on aircraft spare parts will help airlines maintain their fleets more efficiently, ensure safety standards, and keep ticket prices from skyrocketing due to maintenance overheads.”
Relief for Airlines, but Questions Remain
The policy has been met with mixed reactions across economic and public policy circles. While aviation operators and stakeholders have hailed the move as “long overdue,” some economists and social commentators have questioned its timing and priority, given Nigeria’s current economic realities.
Aviation industry insiders note that spare parts account for up to 40% of total maintenance costs, especially as most Nigerian airlines rely on overseas facilities for servicing. The duty-free policy, they argue, could make a meaningful difference in keeping airlines solvent in the face of rising fuel prices and naira depreciation.
However, policy analysts are asking whether the duty-free regime — which effectively offers a tax holiday to a sector often seen as a luxury service — aligns with the broader needs of an economy where inflation and poverty levels are biting harder than ever.
“While the aviation sector is vital, it’s not a mass-market necessity,” said a Lagos-based economic analyst. “Over 90% of Nigerians do not use air transport regularly. It raises questions whether duty waivers should not instead focus on essential goods — like food, medicine, and education materials — that directly impact the low and middle-income classes.”
A Global Comparison
Globally, the question of tax waivers on aviation components is not new. Many advanced economies, including the United States, the United Kingdom, and the European Union, already offer tax exemptions or low-duty regimes on aircraft spare parts — but with a key distinction: these countries have robust social safety systems and targeted subsidies for essential goods that protect the lower class.
In countries like Nigeria, where tax revenue is already limited and social safety nets are weak, critics argue that a broad waiver for the aviation industry could inadvertently divert scarce fiscal resources away from more pressing needs.
“Duty waivers are a form of fiscal sacrifice,” explained an economist at the University of Nigeria, Nsukka. “When government exempts a sector from import duties, it’s foregoing potential revenue. The key question is: who benefits most — the average Nigerian or the business elite?”
Luxury vs. Necessity Debate
Aviation, while vital for national and international mobility, is often considered a premium service in Nigeria. The average domestic flight ticket now costs between ₦100,000 and ₦180,000 — far beyond the reach of the majority of Nigerians.
Critics say that while duty-free spare parts may stabilize airlines, it does not directly translate into cheaper tickets or improved access to air travel for ordinary citizens.
“There’s no evidence that airlines will pass these savings to passengers,” noted A public policy advocate. “Without regulatory conditions tying duty waivers to fair pricing, this could just fatten profit margins without helping the public.”
Keyamo’s Balancing Act
Despite the criticisms, Minister Keyamo insists that the decision is in the national interest, emphasizing that the aviation industry has strategic importance for investment, tourism, and logistics.
“This is not about luxury — it’s about safety and competitiveness,” Keyamo told reporters. “Without a vibrant aviation sector, no modern economy can grow. Our goal is to make Nigeria an aviation hub for West and Central Africa.”
Observers believe Keyamo’s initiative is part of President Bola Tinubu’s wider ease of doing business reform agenda, aimed at revitalizing strategic sectors and attracting foreign investment.
The Bigger Question
Still, the announcement raises a deeper policy dilemma: Should tax reliefs be used to ease the burden of struggling elites or the suffering masses?
With food inflation above 33%, unemployment climbing, and the naira still battling market volatility, many argue that fiscal incentives would yield greater social returns if redirected toward sectors like agriculture, manufacturing, and renewable energy, where millions of jobs can be created.
“If the goal is to stabilize the economy, tax incentives should target productivity, not prestige,” said economist Aminu Sulaiman. “The government must strike a balance between supporting high-value industries like aviation and protecting the economic survival of ordinary Nigerians.”
Bottom Line
The new duty-free importation policy for aircraft spare parts is a welcome development for Nigeria’s struggling airlines, potentially helping to improve safety and reduce maintenance costs.
However, as the nation wrestles with economic hardship, the debate lingers: Should fiscal reliefs benefit luxury-driven sectors or be redirected toward essential goods that uplift the majority?
Only time will tell whether Keyamo’s policy will fly Nigeria’s aviation sector higher — or widen the gap between the air-travel elite and the struggling ground economy.
— AWC Business & Policy Desk
