The Federal Government has ended Value Added Tax (VAT) and duty exemptions for airlines and reinstated taxes on commercial aircraft engines, spare parts and flight tickets. Implementation kicks off January 1, 2026.
At a Business Webinar on Thursday jointly organised by Aviation & Allied Business in collaboration with the Federal Inland Revenue Service (FIRS) themed: ‘Nigeria Tax Act (2025) & The Aviation Industry: Aviation Sector Enlightenment Initiative,’ the Assistant Director, Nigeria Revenue Service (formerly FIRS), Nkechi Umegakwe, explained that the new directive draws strength from the Tax Reforms Act, adding that the implementation will be total.
She said unlike what is currently obtainable, it will become mandatory from January next year for airline operators and other aviation companies to pay the Value Added Tax (VAT) in all of their services and operations.
Currently, airlines are exempted from the payment of import duties and VAT on the importation of commercial aircraft, commercial aircraft engines, spare parts, and air tickets, a policy implemented.
She insisted that all the above are now liable to VAT from January 1, 2026.
