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Millions released, 2 airlines selected to evacuate thousands of Nigerians trapped in Ukraine

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4 years ago

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March 2, 2022

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As tension rises in Ukraine, President Muhammadu Buhari has approved $8.5 million for the evacuation of Nigerians trapped in the Russian onslaught on its country.

Zubairu Dada, Minister of State for Foreign Affairs, disclosed this on Wednesday.

Dada said the approval was given on Wednesday at the Federal Executive Council (FEC) meeting presided over Vice-President Yemi Osinbajo.

The minister said AirPeace and Max Air airlines have been selected to provide three aircraft to facilitate the evacuation of Nigerians.

No fewer than 5,000 Nigerian students, among others, have been affected.

Nigerian embassies in Romania, Hungary, and Poland have received over 256 of them.

Geoffrey Onyeama, the Minister of Foreign Affairs said evacuation commenced Wednesday.

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Rising Tensions Between Regulators and Airlines The financial strain has coincided with renewed friction between the Nigeria Civil Aviation Authority (NCAA) and the Airline Operators of Nigeria (AON), following disputes over the remittance of statutory charges and the delivery of regulatory services. Operators say the situation reflects deeper systemic liquidity stress across the sector, where airlines are increasingly unable to meet overlapping obligations imposed by aviation agencies while maintaining operational stability. A Layered and Fragmented Tax System At the centre of industry complaints is what operators describe as a “multi-layered and excessive” taxation structure involving the NCAA, the Federal Airports Authority of Nigeria (FAAN), and the Nigerian Airspace Management Agency (NAMA). Airlines such as Air Peace, Ibom Air, and United Nigeria Airlines are subject to a range of compulsory charges, including the 5% ticket levy, passenger service charges, value-added tax on tickets and aviation inputs, and other operational deductions collected at different stages of the value chain. Industry players argue that the system creates cash flow distortions because several charges are collected upfront or deducted at source, leaving airlines with reduced working capital for day-to-day operations. Beyond ticket-based deductions, carriers also face landing fees, parking charges, overflight fees, navigation levies, and ground handling costs. Combined with jet fuel, which accounts for a significant share of total operating expenses, analysts say profitability on many domestic routes has been severely constrained. 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As a result, airlines are frequently forced into short-term leasing agreements, exposing them to exchange-rate fluctuations and operational disruptions that contribute to flight delays and cancellations. Fuel Costs Deepen Financial Strain Jet A1 fuel remains one of the largest cost drivers in the sector, further squeezing margins across domestic routes. With fuel expenses, taxes, and leasing obligations combined, industry analysts say many airlines are operating with extremely narrow or unstable margins. Operators warn that without coordinated policy reforms, sustained profitability and expansion in the sector will remain difficult. Calls for Structural Reform Aviation stakeholders are calling on the federal government to streamline overlapping charges, review the newly introduced 5% levy, and consider removing VAT on aviation inputs to ease cost pressures. 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