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Air fares to drop following VAT removal

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Airl are planning to reduce fares in response to the removal of 7.5 per cent ValueOhunayoTax (VAT). The suspension of VAT from air fares took effect from January 1, 2021, as part of incentives contained in the Finance Act 2020.

Airline operators told our correspondent  that they have received the directive on VAT removal from the government, but they are waiting for the Federal Inland Revenue Service (FIRS) to implement the directive before the low fares regime comes into operation.

Investigations have shown  that fares that were around N90, 000 for a one-way trip on some routes, could come down to as low as N27, 500.

Possible reduction, an operator hinted, would take effect in the weeks ahead after airlines have enjoyed the huge passenger traffic on the return leg for the end of year festivities.

Spokesman of Dana Air, Kingsley Ezenwa said airlines were excited over the suspension of VAT, which he said should occasion considerable reduction in air fares.

Another airline official who pleaded anonymity however, said substantial reduction in air fares might not be realisable because even with the suspension of 7.5 per cent VAT on fares, airlines were still grappling with oscillating exchange rate as the airport authority moves to increase Passenger Service Charge (PSC)gooERTISEMENTSEME

Currently, airlines are charging from N27,500 to N38,800 on the Lagos-Abuja route. Airlines are also charging from N27,500 to N42,000 on the Abuja-Lagos route.

On the Lagos-Owerri route, airlines charge from N27, 500 to N33,000. Return fares on Owerri-Lagos route goes for between N60,000 and N90,000.

On the Lagos-Port Harcourt route,  fares are going for between N42,000 and N80,000.

On the Lagos-Kano route, airlines range from N29,900 N35, 700; N42,000.

Operators, however, expressed divergent views on how the removal of 7.5 percent VAT, hitherto factored into domestic airfares, would affect their operations.

They said though the removal of VAT could bring about considerable reduction of airfares, it was a step taken too late after two years of agitation by the Airline Operators of Nigeria (AON), the umbrella body of local carriers.

In 2018, the government had suspended five per cent charges on imported commercial  aircraft and spare parts through an executive order but, the FIRS claimed to be unaware of such a directive, hence it was never implemented leaving airlines confused on the pronouncement.

In an interview at the weekend, Chairman of West Link Airlines Captain Ibrahim Mshelia, however, said the suspension of VAT was a good development for domestic carriers.

“If implemented, the removal of Value Added Tax will ease, standardise and harmonise our system with international best practices. It is a good move in the right direction,” Mshelia said.

Chief Operating Officer, Dana Air, Obi Mbanuzor  said Dana Air said: “We are happy about the removal which we feel should naturally reflect on fares and possibly bring it down but with the inflation of other aspects of the chain like dollar rate this might not be possible. We know the government has no control over this but it is a major concern,” Mbanuzor said.

He noted that with all the other extraneous costs being borne by airlines, the adjustment to air fare may be minimal.

“So we are not saying it won’t affect but might be slight because other factors are still springing up and it’s a chain. Policy! Policy! Policy! Will impact the airlines better but this is also appreciated. One step at a time and this is one very good step at getting it right,” Mbanuzor said.

Head, Research, Zenith Travels, Olumide Ohunayo added: “I’m happy to see the implementation of the VAT because in the first place, the airlines were putting it on the ticket and oftentimes as in Virgin Nigeria case, they will not be remitted to the Federal Government and this amount was put on tickets and taken from passengers.

“The fares were loaded with security, fuel surcharge and other charges. I don’t expect much difference in the ticket prices those were the hidden charges airlines benefited from and now it is gone. We expect that airlines should be able to issue tickets stating clearly the fare and what the other charges are; it should not be hidden anymore so we can have some progress in the fare structure,” Ohunayo  said.

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JUST IN: Court Rejects “Terrorists’ Negotiator” Tukur Mamu’s Third Bail Application

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A Federal High Court in Abuja has rejected a fresh application for bail filed by detained alleged terrorists negotiator, Tukur Mohammed Mamu.

Justice Mohammed Umar, in a ruling on Wednesday, noted the health complaint by Mamu and held that the detaining authority, the Department of State Services (DSS) should not release him but take him to an appropriate health facility where he would be adequately attended to.

Justice Umar noted that, by the history of the case so far, the prosecution has exhibited diligence in it handling of the case and exhibited diligence in prosecuting the case.

The judge said one of the reasons for granting bail is where the prosecution is not diligent, noting that since the prosecution in this case is diligent, the application for bail cannot be granted.

He subsequently ordered that the defence lawyer should choose the health facility comfortable to the defendant, to which he should be promptly taken.

He also asked the DSS to allow the defendant access to members of his family.

The ruling on Wednesday is the third time the court will reject his application for bail since his was arraigned on March 21, 2023 by the Federal Government on a 10-count charge bordering on terrorism financing, among others.

Mamu was arrested on September 7, 2022 by Egyptian security officials at the Cairo International Airport, on reasonable suspicion of financing Boko Haram terrorism activities.

He was alleged to have convinced the terrorists to discuss ransom payments with individual families of the hostages of the train attack instead of the Chief of Defense Staff Committee set up by the Federal Government for his personal financial gain.

He was said to have been nominated by the terrorists that attacked the Abuja-Kaduna bound train sometime in March 2022 which took scores of persons hostage.

Mamu was alleged to have collected ransoms on behalf of the Boko Haram terrorists from families of hostages, confirmed the amount and facilitated the delivery of same to the terrorists.

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BREAKING: ASUU suspends two-week warning strike

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The Academic Staff Union of Universities has announced the suspension of its ongoing two-week warning strike.

The National President of ASUU, Prof. Chris Piwuna, made this known in an ongoing press briefing in Abuja on Wednesday.

According to Piwuna, the decision stemmed from the meeting of the National Executive Council meeting which was held overnight and ended by 4:00 am on Wednesday.

Piwuna noted that the union decided to embark on the strike due to the failure of the government to meet its demands on time.

“We’ve had useful engagements with representatives of the government to consider the response to the draft renegotiation of the 2009 agreements. However, we are definitely not where we were prior to the commencement of the strike.

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Update : police tracks down mastermind of railway vandalism, recovers load of stolen Materials in Plateau, Says Opeifa

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The Nigerian Railway Corporation (NRC) had a major breakthrough recently it its efforts to apprehend the vandals of its critical assets across the country.
Towards this end, the Corporation’s police Command has arrested one Musa Abdullahi, aka Major aged 32, a notorious receiver and kingpin of vandalized railway materials, in Kaduna.
The arrest was a major success recorded by the Corporation in its campaign against the vandalisation and theft of railway materials, just as it intercepted a trailer loaded with railway components In plateau State.
In Kaduna, operatives of the Nigerian Police, Railway Command, arrested the suspect around the Rigasa area.
His arrest followed intelligence reports on the vandalism of electrical installations along the Mando–Rigasa corridor on Tuesday,14th October 2025.
Investigation is ongoing, and the case will be charged to court on conclusion.
In Plateau State, operatives of the Nigeria Police, Railway Command, intercepted trailer conveying large quantities of railway materials along KM 822–823, Foromaxis, in the early hours of Tuesday, 14th October 2025.
The truck, which was abandoned by its driver who fled the scene, was successfully towed to the Jos Railway Police Station on Wednesday, 15th October 2025.
Investigation is on going to uncover and apprehend all individuals connected to the theft.
The Managing Director of the NRC, Dr. Kayode Opeifa, commended the Nigeria Police for their professionalism, intelligence-led operation, and swift action in handling both incidents.
He described the arrests and recovery as clear evidence of the renewed synergy between the Corporation and security agencies in protecting critical railway infrastructure across the country.
Dr. Opeifa reaffirmed the Corporation’s resolve to strengthen collaboration with the Nigeria Police, the Nigeria Security and Civil Defence Corps (NSCDC), and other security formations to ensure that vandals, receivers, and collaborators are brought to justice.
He emphasized that such criminal acts amount to economic sabotage, warning that the NRC Management will continue to pursue zero tolerance for vandalism through enhanced surveillance, community engagement,and intelligence sharing.
Opeifa further appealed to residents of communities hosting railway facilities to remain vigilant and promptly report any suspicious movement around rail installations.
He noted that the railway system remains a major driver of national development and urged the public to view its protection as a shared responsibility.

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