The Vice Chairman of the Airline Operators of Nigeria (AON), Allen Onyema, has cautioned that domestic carriers may collapse if the Federal Government implements the new tax regime scheduled for January 1, 2026, without adjustments.

Onyema issued the warning on Monday while addressing industry stakeholders during the centenary celebration of aviation in Nigeria in Abuja.

He praised President Bola Ahmed Tinubu for supporting the sector, but however, urged the government to consider the airlines’ concerns before the new tax policy undermines the progress achieved in recent years.

“Our industry was almost dead. Nigerian airlines were suffering under a demonised status. We were all demonised as lacking capacity. Nobody had faith in us,” Onyema said.

He added that domestic airlines had only recently begun to recover under reforms led by Minister of Aviation and Aerospace Development, Festus Keyamo.

Describing Festus Keyamo as a “square peg in a square hole,” Onyema said the minister had executed President Tinubu’s mandate “more than 100 percent.”

Onyema however, warned that the 2026 tax measures could wipe out these gains.

“We are going to meet members of the National Assembly very soon, together with our Minister, to discuss the issues of taxation that are supposed to come into effect on January 1, 2026, as it affects the airlines. Because if it is allowed to stand, all of us will crumble. But I know Mr. President will listen to our cries and do the needful.” he said.

The AON Vice Chairman also urged the Minister to continue advocating for a policy environment that allows domestic carriers to survive and thrive.

Speaking at the event, the Minister of Aviation, Festus Keyamo, applauded industry veterans for their decades of service, describing the 100-year celebration as a “watershed moment” for Nigerian aviation.

He highlighted the contributions of technical personnel and aviation agency executives to the sector’s progress.

Keyamo acknowledged the veterans’ honours list initially capped at 40 but later expanded to 47, apologising for any omissions.

 “This is a general shout-out and appreciation to all those who were not mentioned. At another time, we are going to mention them again,” he said.

He also encouraged industry legends to continue mentoring and guiding the sector. “Don’t abandon us. At any time, like little children, when we run into a problem, we will always come back to you,” he added.

The event underscored both the achievements and ongoing challenges facing Nigerian aviation, with stakeholders calling for balanced policies to ensure the sector’s sustained growth.