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LAGOS – If the Federal Government goes ahead to implement the new Tax Reform Act 2025 in its entirety, it may jeopardise the current air safety enjoyed in the Nigerian air sector, Capt. Alex Badeh Jnr., the Director-General of the Nigerian Safety Investigation Bureau (NSIB), has said.
Badeh, however, expressed optimism that the new Act would be amended before it commences implementation in January 2025.
Speaking in a virtual interview with some journalists, recently, Badeh feared that the full implementation of the Tax Reform Act would have a negative effect on the entire aviation industry ecosystem.
According to him, the aviation industry, especially the aviation agencies needed funds to consistently train and retrain its technical personnel to stay current and in compliance with the International Civil Aviation Organisation (ICAO) recommended practices.
He expressed worries that the new system may be cumbersome, slow down the sector and affect safety protocols in the long run.
Badeh however said that Mr. Festus Keyamo, the Minister of Aviation and Aerospace Development was taking the lead to discuss the effect of the new Tax Reform Act on the agencies with the Federal Government, hoping that it would be addressed before full implementation.
He said: “We are still studying to see how it will affect us. Some say it is going to affect us negatively, but I do believe that there are engagements right now with the government by the Ministry of Aviation and Aerospace development if this will be a problem.
“In the transportation sector, safety is key and we need money to train people. If the government comes out and says they will dole out the money as they dole out to other agencies, it is really going to jeopardise safety. We can’t do our job efficiently and effectively. How do we prevent this loss of lives?
“But being a safety person, I am optimistic that it will be stopped before we get there. There will be intervention probably from the Honourable Minister and other heads of agencies. I believe this would happen before the enforcement.”
President Bola Tinubu had on June 26, 2025, signed into law a historic package of tax reform legislation, marking the most comprehensive overhaul of Nigeria’s fiscal architecture in decades.
The four Acts: The Nigeria Tax Act, Nigeria Reve¬nue Service (Establishment) Act, Nigeria Tax Administration Act, and the Joint Revenue Board (Es¬tablishment) Act.
The new Act replaces legacy laws such as the Companies Income Tax Act (CITA), Personal Income Tax Act (PITA), Capital Gains Tax Act (CGTA), Value Added Tax Act, and the Stamp Duties Act, among others.
On the remittances from the Nigeria Civil Aviation Authority (NCAA) and the Federal Airports Authority of Nigeria (FAAN) in compliance with the NSIB Establishment Act 2022, Badeh said the agencies were complying with the payment, despite initial challenges.
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