The Nigeria Civil Aviation Authority (NCAA) has dismissed claims that the rise in domestic airfares during December was due to government taxes. Michael Achimugu, NCAA’s Director of Public Affairs and Consumer Protection, stated that the increases were driven purely by market forces and festive travel demand.
According to Achimugu, the December fare hikes were limited to high-traffic routes and reflected a recurring annual trend. He emphasized that transport fares, accommodation, and food prices also rise during the festive season.
“December airfares have absolutely nothing to do with taxes. Taxes did not increase in December, and airfares will most likely go down after the second week of January,” Achimugu said.
The clarification comes amid comments by Allen Onyema, CEO of Air Peace, who claimed that Nigerians pay some of the cheapest domestic fares globally, but airlines retain only about ₦81,000 from a ₦350,000 ticket after taxes and charges. NCAA, however, described claims that domestic airlines pay as many as 18 taxes as false and misleading.
Achimugu stressed that the NCAA does not regulate airfares but monitors the industry closely. He questioned why tickets sold for as high as ₦500,000 for short flights when taxes and jet fuel prices had not increased.
He also highlighted the government’s support for domestic carriers under President Bola Ahmed Tinubu, Minister of Aviation Festus Keyamo, and NCAA DG Capt. Chris Najomo, including policy reforms allowing airlines access to dry-leased aircraft, something unavailable for decades.
“Not a single airline staff I spoke with agreed with the excuses I am reading on social and traditional media,” Achimugu said, reiterating that the airfare surge was market-driven, not tax-related.
