The Nigerian Civil Aviation Authority (NCAA) has dismissed claims that high domestic airfares are the result of multiple government taxes, insisting that airlines do not pay the alleged levies and attributing recent fare spikes to normal market forces of demand and supply.
The Director of Public Affairs and Consumer Protection at the NCAA, Michael Achimugu, made the clarification in a statement posted on X (formerly Twitter) on Sunday, describing repeated allegations of excessive taxation on domestic flights as misleading.
Resharing a previous interview, Achimugu stated unequivocally:
“Any domestic carrier operating domestic flights that says that they are paying 18 taxes is a liar. No domestic carrier pays 18 taxes for domestic flights.”
He argued that if taxes were truly responsible for rising ticket prices, there should have been a corresponding increase in levies or fuel costs—something he said did not occur.
“We understand the high air fares this period are down to market forces—demand and supply. Let us assume there are 18 taxes; where did those taxes increase recently? Why is it different in December?” he asked.
NCAA: Airlines Admitted Taxes Were Exaggerated
Achimugu said the NCAA, which does not regulate ticket prices, had invited domestic airlines for discussions to clarify the issue. According to him, the airlines admitted that the volume of taxes being cited publicly was inaccurate.
“They all admitted to not paying the volume of taxes being bandied around. I don’t understand this ₦350,000 and ₦81,000 narrative,” he said.
He added that the Federal Government, under 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 domestic airlines.
“For the kind of support this administration has given domestic carriers, I see no reason why the government keeps getting thrown under the bus via statements like this,” Achimugu stated.
Onyema Maintains Airlines Bear Heavy Costs
The NCAA’s response follows comments by Air Peace Chairman and CEO, Allen Onyema, who recently told ARISE NEWS that airlines lose money on many domestic routes, particularly in the South-East, where return flights often operate nearly empty.
According to Onyema, airlines still bear the full operational cost of both legs of such journeys.
“Almost 65 to 70 per cent of that money is not coming to the airlines. They’re going somewhere else—levies, taxes and other charges,” Onyema said, describing airlines as the “sacrificial lamb” of the aviation industry.
He stressed that high ticket prices reflect operational realities rather than profiteering, adding that fares fluctuate based on booking time, demand and seat availability. Onyema also argued that Nigeria’s domestic airfares remain among the lowest globally when compared with international markets.
NCAA Questions Contradictions in Fare Arguments
Achimugu, however, questioned what he described as contradictions in the airlines’ arguments, noting that claims of low global fares were being used alongside justifications for high December ticket prices.
“It is ironic that, in the same statement, it is alleged that Nigerians pay the lowest domestic airfares in the world while also justifying astronomical airfares in December, even though there was no hike in taxes or jet fuel,” he said.
He further queried why tickets sold for as much as ₦500,000 for a 45-minute flight when there had been no corresponding increase in taxes or fuel prices.
“If high taxes were the reason airfares were ₦150,000 to ₦200,000, why did tickets sell for as high as ₦500,000 when the said taxes did not increase?” Achimugu asked.
‘It Is Market Forces, Not Government’
The NCAA spokesperson concluded that the December fare surge is a seasonal phenomenon driven by heightened travel demand, stressing that similar price increases occur across other sectors.
“As far as I am concerned, the astronomical airfares in December are limited to certain destinations because of high demand,” he said.
“It is never just the airfares—it is bus fares, Airbnb rates, the price of food. It is market forces. It is Nigerians on Nigerians. This is not government.”
Naija247news Staff ✔
Godwin Okafor is the Publisher & CEO of Naija247news Media Group LLC, an independent investigative news platform delivering accurate, data-driven reporting on Nigerian and global politics, economy, finance, and business. Founded in October 2010, Naija247news specializes in developmental journalism, providing timely insights and analysis to readers across Nigeria and the diaspora.
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