Allen Onyema turned Air Peace into a lifeline for millions of Nigerians. Now Lagos State is suing him for N94 million in alleged unpaid taxes — and the timing has raised some very uncomfortable questions.
He airlifted 600 stranded Nigerians out of South Africa at his own expense. He built the country’s largest airline from scratch. And now Allen Onyema — the man many Nigerians consider a national hero — is being sued by Lagos State for N94 million in alleged unpaid taxes.
The lawsuit was filed just weeks after he publicly criticised the federal government’s tax reform agenda.
Coincidence? In Nigeria, there are people who believe in coincidences. And then there are people who have lived here long enough to know better.
The Case and the Pushback
The Lagos State Internal Revenue Service initiated proceedings against Onyema and his wife Alice over alleged personal income tax liabilities. Air Peace fired back immediately — calling the reports “inaccurate,” insisting all obligations are paid up, and noting that no formal court summons had been served. The airline says it is ready to sit down with Lagos State and reconcile any discrepancies.
Punch Newspapers and The Africa Report confirmed the proceedings were real, citing official state revenue sources. The dispute is live — and ugly.
What makes it politically explosive: Onyema had been loud and public in opposing Nigeria’s sweeping new tax reform proposals. Then the suit drops. Lagos has not addressed the timing. Federal authorities have stayed silent.
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The Worst Possible Time
This crisis lands at Air Peace’s most financially brutal moment in its history. The US-Iran war has pushed crude oil from $65 to over $112 a barrel. Aviation fuel in Nigeria has more than doubled — from under N1,000 per litre to N2,700. Fuel now eats up 45% of airline costs. Operators have warned that if prices hit N3,000 per litre, some carriers go under.
Air Peace has held fares steady to protect passengers, squeezing its own margins. It was already bleeding. A legal battle at the top of the organisation is the last thing it needed.
The Bigger Picture
Onyema founded Air Peace in 2013 on a simple belief — Nigerians deserve affordable, reliable air travel. He delivered. The 2019 South Africa airlift, done free and on his own initiative, made him a symbol of something rare: a Nigerian businessman who gave back when it hurt to do so.
He has faced storms before — including a 2019 US Department of Justice indictment on money laundering charges he has always denied, and which has not led to conviction.
Now the runway ahead is shorter, the headwinds fiercer, and the fight is on two fronts at once. Air Peace wants dialogue. Lagos hasn’t responded. The courts will move slowly. But public opinion has already delivered its verdict — and it is not with Lagos State.
