Nigeria Among Top Earners As Africa Generates $1.97bn From Ticket Taxes

Nigeria emerged as one of Africa’s leading contributors to airline ticket-tax revenue in 2024, generating $62m during the year, according to new data released by the International Air Transport Association (IATA).

The country’s earnings formed part of the continent’s $1.97bn total, highlighting Nigeria’s growing relevance within Africa’s aviation tax landscape.

IATA’s report, which compared ticket-specific taxes across global regions, showed that although Africa accounted for only a small share of the $60.3bn generated worldwide, several of its major aviation markets, Nigeria included, played notable roles in shaping regional performance.

Overall, Africa recorded an average ticket tax of $14.9 per passenger, higher than the Asia Pacific average but still below the levels charged in North and South America.

South Africa led Africa’s domestic and international markets with an estimated $410m in ticket-tax revenue, followed closely by Egypt with $360m. Ethiopia contributed around $310m, while Morocco and Kenya generated $295m and $215m respectively.

These countries host the continent’s busiest international travel hubs and collectively accounted for the bulk of Africa’s total revenue, underscoring how aviation-dependent economies drive the continent’s tax collections.

The report further highlighted strong contrasts between Africa and other global regions. North America retained its position as the world’s largest source of ticket-tax revenue with a commanding $34.1bn, driven by significantly higher average charges, $23.4 on domestic tickets and nearly $49.8 on international flights, the highest rates globally.

Europe followed as the next major contributor with $14.5bn in combined domestic and international taxes, supported by moderate yet widespread levies averaging $12.1 per ticket.

South and Central America stood out for imposing some of the world’s highest international passenger taxes, averaging $45.5 per ticket.

However, the region’s total revenue remained comparatively lower due to reduced passenger traffic.

IATA also noted that the Middle East maintained its long-standing practice of charging no ticket-specific taxes, a policy that continues to shape competitive dynamics in global aviation.

Within Africa, international ticket-tax earnings were largely driven by average charges of $20.7 per passenger. Industry analysts say the continent’s reliance on ticket taxes reflects broader fiscal pressures and the need for governments to strengthen revenue streams tied to aviation, even as airlines and passengers grapple with rising travel costs.

Nigeria’s contribution, though modest relative to larger African markets, underscores the country’s aviation potential and the significant passenger traffic flowing through its major airports.

As the industry continues to recover from global disruptions, analysts believe the latest figures could reignite conversations around tax policies, competitiveness, and the long-term sustainability of Africa’s air transport sector.