NCAA counters Air Peace claims, says taxes not behind airfare hike

The Nigerian Civil Aviation Authority has dismissed claims that high domestic airfares are caused by multiple taxes, insisting that airlines do not pay the levies being alleged and that the recent surge in ticket prices is driven by demand and supply.

The Director of Public Affairs and Consumer Protection at the NCAA, Michael Achimugu, said repeated claims that government taxes are responsible for high fares are false. In a statement posted on X on Sunday, Achimugu described assertions that domestic airlines pay as many as 18 different taxes as untrue.

According to him, no domestic carrier pays 18 taxes on local flights, adding that the current increase in fares is consistent with seasonal market forces. He questioned why fares would spike in December if taxes were the main cause, noting that there had been no recent increase in aviation taxes.

Achimugu said the NCAA, although it does not regulate airfares, invited domestic airlines to clarify the issue. He stated that the airlines admitted they do not pay the volume of taxes being widely circulated. He also expressed concern that government support for domestic carriers continues to be overlooked in public statements.

He said the administration of President Bola Ahmed Tinubu, alongside the Minister of Aviation and Aerospace Development, Festus Keyamo, and the Director General of Civil Aviation, Capt. Chris Najomo, has provided significant support to local airlines, questioning why government is repeatedly blamed for fare increases.

The clarification followed comments by Air Peace Chief Executive Officer, Allen Onyema, who said in an interview on ARISE News that airlines incur losses on some routes, particularly return flights to the South-East, which often operate with low passenger numbers. Onyema argued that airlines still bear the full operational cost of both legs of such flights.

He claimed that between 65 and 70 per cent of ticket revenue does not go to airlines but is lost to taxes, levies, and other charges, describing airlines as the “sacrificial lamb” of the aviation industry. Onyema maintained that high fares reflect operational realities rather than exploitation of passengers, noting that ticket prices vary depending on demand and booking time, with cheaper fares available for early bookings. He also said domestic airfares in Nigeria remain among the lowest globally when compared with other countries.

In response, Achimugu questioned the consistency of claims made by airline operators, noting that there had been no increase in taxes or aviation fuel to justify the sharp rise in fares. He described it as ironic to argue that Nigeria has the lowest domestic airfares globally while also defending ticket prices that rose as high as ₦500,000 for short flights during the December travel period.

He said if taxes were responsible for fares in the range of ₦150,000 to ₦200,000, there would be no justification for much higher prices when those taxes had not increased.

Achimugu concluded that the spike in December fares is limited to certain high-demand routes and mirrors price increases across other sectors during the festive period. He said rising transport costs, accommodation prices, and food costs are all driven by seasonal demand, stressing that the situation reflects market behaviour rather than government policy.