The Nigerian Civil Aviation Authority (NCAA) has disputed claims by the chief executive of Air Peace, Mr Allen Onyema, that excessive taxes are responsible for high domestic airfares.
During a recent interview with Arise TV, Mr Onyema stated that a one-hour flight costs over $400 abroad, but in Nigeria, tickets are still sold for N125,000, which he said is equivalent to less than $60. He said this is why the mortality rate of airlines in Nigeria is very high, as over 80 airlines have became non-operational.
He then said that airlines keep just 23 per cent of a N350,000 ticket after taxes and charges, but the NCAA has pushed back, describing the tax complaints as untrue, blaming the increase in fares on the festive season demand.
On his X handle, the NCAA’s spokesperson, Mr Michael Achimugu, stated that after summoning all domestic airlines, they all admitted to not paying the volume of taxes being publicly complained about.
Mr Achimugu blamed the fare hikes witnessed in December on the high demand of the festive season, noting there was no concurrent increase in official taxes or jet fuel costs at the time. He also stated that taxes account for only 5-6 per cent.
“Lies have been told over this matter, over and over. I have addressed this on national TV, major news platforms, and via my X handle. While the NCAA does not regulate airfares, I have invited all of the domestic airlines, bar none, and asked them about these taxes they keep talking about on TV. They all admitted to not paying the volume of taxes being bandied around.
“I don’t understand this 350k and 81k narrative, but I know that, for the kind of support that President Bola Tinubu, the aviation minister, Festus Keyamo, and the DGCA, Capt. Chris Najomo have given to domestic carriers, I see no reason why the government keeps getting thrown under the bus via statements like this.
”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 to play in December, even though there was no hike in taxes or jet fuel.
”If my inviting the airlines themselves, speaking with travel agents, and the relevant departments within the Authority did not agree with the narrative being pushed, I don’t see how this is sustainable. If high taxes were the reason why airfares were 150k-200k, why did tickets well for as high as 500k for a 45-minute trip when the said taxes did not increase?
“And this is happening at a time when Festus Keyamo has ensured that domestic carriers now have access to dry lease aircraft, something they have not had in decades. Not a single airline staff I spoke with two weeks ago agreed with the excuses I am reading on social and traditional media,” he said.