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Airfares Will Drop After January – NCAA Tells Nigerians

1767004812 NCAA

The Nigeria Civil Aviation Authority (NCAA) has dismissed claims that the sharp increase in domestic airfares recorded during the December festive period was caused by government taxes.

The regulatory body said the fare hike was driven by market forces, particularly increased passenger demand on high-traffic routes during the yuletide season.

Naijaonpoint reports that the clarification was made by the Director of Public Affairs and Consumer Protection of the NCAA, Michael Achimugu, in a post on his 𝕏 handle on Sunday.

Achimugu explained that the surge in ticket prices was a recurring annual trend associated with festive travel and not unique to the aviation sector.

According to him, transport fares, hotel accommodation, and food prices also rise during the holiday season due to increased demand.

“It is market forces. It is Nigerians on Nigerians. This is not the government. December airfares have absolutely nothing to do with taxes,” he said.

He added that there was no increase in aviation-related taxes in December, noting that fares were expected to normalise after the festive rush.

“Taxes did not increase in December, and airfares will most likely go down after the second week of January,” Achimugu stated.

The NCAA spokesperson noted that the fare increases were limited to certain high-traffic routes and did not apply uniformly across the country.

He stressed that such spikes occur annually during peak travel periods and ease once demand drops.

Achimugu also faulted claims by some domestic airline operators that excessive taxes and charges were responsible for the astronomical ticket prices witnessed in December.

He described as false assertions that airlines pay as many as 18 different taxes.

“Any domestic airline that says they pay 18 taxes is lying. I have addressed this on national television, major news platforms, and via my X handle,” he said.

He disclosed that the Authority had engaged all domestic airlines on the issue, adding that the operators themselves admitted they do not pay the figures often cited publicly.

“I invited all domestic airlines and asked them directly about these taxes, and they all admitted they do not pay the volume of taxes being bandied around,” Achimugu said.

The NCAA’s position follows comments by Air Peace Chief Executive Officer, Allen Onyema, who claimed on Sunday that Nigerians pay the cheapest domestic airfares globally.

Onyema had argued that airlines retain only about ₦81,000 from a ₦350,000 ticket after taxes and charges, leaving operators under severe financial pressure.

Reacting to the claim, Achimugu said the narrative was misleading and did not reflect realities within the industry.

“I don’t understand this 350k and 81k narrative,” he said.

Achimugu further questioned how tickets sold for as much as ₦500,000 for flights lasting less than an hour, despite no increase in taxes or jet fuel prices during the period.

“If high taxes were the reason airfares were ₦150,000 to ₦200,000, why did tickets sell for as high as ₦500,000 for a 45-minute trip when the said taxes did not increase?” he asked.

He maintained that discussions with airline staff, travel agents, and relevant NCAA departments did not support claims that taxes were responsible for the December fare surge.

The NCAA spokesman also expressed concern over what he described as repeated attempts to blame the government, despite what he said was unprecedented support for domestic airlines under the current administration.

He cited recent policy reforms that now allow local airlines access to dry-leased aircraft, a development he said had been unavailable to them for decades.

“The kind of support President Bola Ahmed Tinubu, the Minister of Aviation and Aerospace Development, Festus Keyamo, and the Director General of Civil Aviation, Capt. Chris Najomo, have given to domestic carriers does not justify why the government keeps getting thrown under the bus,” Achimugu said.

Achimugu concluded that the justification being offered for the December fare surge was inconsistent and unsustainable.

“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 into play in December, even though there was no hike in taxes or jet fuel,” he said.

He added that none of the airline staff he spoke with recently agreed with the explanations circulating in both social and traditional media.

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