The Nigeria Civil Aviation Authority, NCAA, has refuted claims that rising domestic airfares, especially during December, are the result of excessive taxes imposed on airlines, insisting that available evidence does not support such assertions.
In a post shared on X on Monday, the director of public affairs and consumer protection at the NCAA, Michael Achimugu, said discussions held directly with domestic airline operators contradicted the claims frequently made in the media about heavy taxation.
“While the NCAA does not regulate airfares, I have invited ALL of the domestic airlines, bar none, and asked them about these taxes they keep talking about on TV,” Achimugu said.
“They ALL admitted to NOT paying the volume of taxes being bandied around.”
Achimugu’s response followed comments made by the chief executive officer of Air Peace, Allen Onyema, who stated on Sunday, December 28, that Nigeria has some of the lowest domestic airfares globally despite the high operational costs faced by local carriers.
Onyema had argued that airlines are burdened by multiple taxes and charges, claiming that from a ticket priced at N350,000, airlines retain only about N81,000 as profit. He also pointed to the NCAA’s five percent ticket charge as a significant levy and suggested it should instead be paid directly by passengers at airports.
Reacting to these claims, Achimugu questioned their logic, stressing that neither taxes nor jet fuel prices increased during the period when airfares rose sharply.
“I don’t understand this 350,000 and 81,000 narrative, but I know that, for the kind of support that President Bola Ahmed Tinubu; the aviation minister, Festus Keyamo; and the DGCA, Capt. Chris Najomo have given to domestic carriers, I see no reason why the government keeps getting thrown under the bus via statements like this,” he said.
“It is even ironic that, in the same statement, it is alleged that Nigerians pay the lowest domestic airfares in the world while also justifying the astronomical airfares that came to play in December even though there was no hike in taxes or jet fuel.
“If my inviting the airlines themselves, speaking with travel agents, and the relevant departments within the Authority did not agree with the narrative being pushed, I don’t see how this is sustainable.
“If high taxes were the reason why airfares were 150,000-200,000, why did tickets sell for as high as 500,000 for a 45-minute trip when the said taxes did not increase?
“And this is happening at a time when Festus Keyamo has ensured that domestic carriers now have access to dry lease aircraft; something they have not had in decades.
“Not a single airline staff I spoke with two weeks ago agreed with the excuses I am reading on social and traditional media.
“If these ‘taxes’ justify a 350,000 ticket, why are some operators charging way less for longer distances than a 500,000, 45-minute trip?”
Achimugu maintained that the fare increases seen in December were seasonal and mainly affected certain high-traffic routes. He added that similar price surges are common in other sectors during festive periods due to demand.
“It is market forces. It is Nigerians on Nigerians. This is not government,” Achimugu said.
The debate comes amid heightened legislative attention on airfare pricing. On December 10, the Senate summoned the Minister of Aviation, Festus Keyamo, alongside key industry stakeholders, to address the sharp rise in ticket prices. A day later, the House of Representatives called on the federal government to slash aviation taxes by 50 percent in a bid to reduce domestic airfares.
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