The Nigerian Civil Aviation Authority (NCAA) has dismissed claims that high domestic airfares are caused by multiple government taxes, insisting that airlines do not pay the levies often cited and that recent price increases are the result of demand-and-supply dynamics.
The Director of Public Affairs and Consumer Protection at the NCAA, Michael Achimugu, said allegations that domestic airlines pay as many as 18 different taxes are unfounded. In a statement shared on X on Sunday, Achimugu described such claims as false and misleading.
According to him, no domestic airline operating within Nigeria pays the number of taxes frequently referenced in public discussions. He argued that if taxes were responsible for fare increases, there should have been a corresponding rise in those charges, which has not occurred.
Achimugu disclosed that the NCAA had invited domestic carriers to clarify the issue and that the airlines admitted they do not pay the volume of taxes being claimed publicly. He stressed that while the authority does not regulate airfares, it understands that the sharp rise in ticket prices during December is linked to seasonal demand.
He expressed concern that the government continues to be blamed despite what he described as strong support for the aviation sector from President Bola Ahmed Tinubu, the Minister of Aviation and Aerospace Development, Festus Keyamo, and the Director General of Civil Aviation, Capt. Chris Najomo.
The clarification followed comments by Air Peace chief executive officer, Allen Onyema, who said airlines incur the full cost of return flights on some South-East routes despite low passenger numbers on one leg of the journey. Onyema also claimed that a significant portion of ticket revenue goes to taxes, levies and other charges, portraying airlines as bearing an unfair burden.
Onyema maintained that high fares reflect operational realities rather than profiteering, noting that ticket prices vary depending on demand and booking time. He added that early bookings often attract cheaper fares and argued that domestic airfares in Nigeria remain among the lowest globally.
Responding, Achimugu questioned the logic of blaming taxes, pointing out that neither taxes nor jet fuel prices increased to justify fares rising to as much as ₦500,000 for short flights. He said it was contradictory to claim that Nigerians pay some of the lowest airfares globally while also attributing December’s high prices to government charges.