The Nigerian Civil Aviation Authority (NCAA) has rejected claims that domestic airfares are high due to multiple taxes, stating that airlines do not pay the alleged levies and that ticket prices are primarily driven by demand and supply.
In a statement posted on X on Sunday, Michael Achimugu, Director of Public Affairs and Consumer Protection, described recurring allegations of excessive government taxes on domestic flights as misleading.
Resharing an earlier interview, Achimugu said no domestic airline pays up to 18 taxes, as frequently claimed.
“Any domestic airline saying it pays 18 taxes on local flights is lying. No domestic carrier pays that number of taxes,” he said.
He explained that the spike in airfares, especially in December, is due to market forces, questioning why fares would suddenly rise if there had been no recent increase in taxes.
Achimugu noted that although the NCAA does not regulate ticket prices, the authority had engaged domestic airlines on the issue.
“All of them admitted they do not pay the number of taxes being mentioned,” he said, adding that the aviation sector has received significant support from President Bola Ahmed Tinubu, Aviation Minister Festus Keyamo, and the Director-General of Civil Aviation, Capt. Chris Najomo.
The NCAA’s response follows remarks by Air Peace Chairman Allen Onyema, who told ARISE News that airlines incur full operational costs on return flights even when planes return nearly empty, particularly on South-East routes.
Onyema claimed that about 65 to 70 per cent of ticket revenue goes to taxes, levies, and charges, describing airlines as the “sacrificial lamb” of the industry. He argued that fare increases reflect operational realities and maintained that Nigerian domestic fares remain among the lowest globally, with cheaper tickets available for early bookings.
Achimugu, however, challenged these assertions, pointing out that there had been no recent tax hikes or increases in jet fuel prices to justify extreme fare increases.
He questioned how fares could jump from between ₦150,000 and ₦200,000 to as high as ₦500,000 for short flights when costs had not changed.
In conclusion, Achimugu said December fare hikes are limited to high-demand routes and are consistent with broader seasonal price increases.
“It’s not just airfares—bus fares, accommodation, and food prices all rise. It’s demand and supply. It’s Nigerians paying more because demand is high, not government policy,” he said.
