Local Carriers to Save N26.5bn Annually from Waiver on Tariffs – Thisday

Chinedu Eze

Nigerian airlines will save as much as N26.5billion annually from waiver on tariffs for the importation of aircraft and parts, which take large chunks of operators’ revenues.

Airlines pay duties on aircraft importation, aircraft spares, engines and other accessories and each airline imports spares many times a year. Also, every spare in an aircraft is imported so domestic carriers spend so much in foreign exchange on spare parts importation.

The Nigeria Customs Service charges five per cent duty on the total cost of every aircraft spare imported into the country and the price of average engine of Boeing 737, which is the commonly used aircraft type among Nigerian airlines, ranges from $500,000 to $1million or more depending on engine life and capacity.

More regularly, airlines import tyres, rotaries, engine oil and spares and duties are paid on every part imported.

Read more at http://www.thisdaylive.com/index.php/2016/07/15/local-carriers-to-save-n26-5bn-annually-from-waiver-on-tariffs/