Govt taxes not behind December airfare hikes – NCAA

The Nigeria Civil Aviation Authority (NCAA) has refuted claims that the surge in domestic airfares recorded in December was triggered by government taxes.

Michael Achimugu, Director of Public Affairs and Consumer Protection at the NCAA, clarified the issue in a post shared on his X handle on Sunday.

According to him, the fare increases were driven purely by market forces, particularly heightened passenger demand during the festive season.

Achimugu explained that the rise in ticket prices was restricted to specific high-traffic routes and represents an annual pattern associated with increased travel in December.

He added that the trend is not exclusive to aviation, noting that transport fares, hotel rates and food prices typically rise during festive periods.

“It is market forces. It is Nigerians on Nigerians. This is not the government. 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,” he said.

“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 Ahmed 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.”

The NCAA’s clarification followed comments by Air Peace Chief Executive Officer, Allen Onyema, who said on Sunday that Nigerians pay some of the cheapest domestic airfares globally. Onyema claimed airlines retain only about ₦81,000 from a ₦350,000 ticket after taxes and charges, placing operators under financial pressure.

However, the NCAA rejected assertions by some airline operators that excessive taxes and charges were responsible for the sharp increase in ticket prices during the yuletide season.

Achimugu insisted that no domestic airline in Nigeria pays up to 18 different taxes, describing such claims as misleading.

He said the Authority has repeatedly engaged domestic airlines on the matter, adding that the operators themselves acknowledged they do not pay the amounts often cited publicly.

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

While stressing that the NCAA does not regulate airfares, he noted that discussions with airlines, travel agents and relevant departments within the Authority do not support claims that taxes were responsible for the December fare hike.

He also questioned why ticket prices rose to 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.

Achimugu further 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 Nigerian carriers access to dry-leased aircraft, a benefit he said had not been available 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, has given to domestic carriers does not justify why the government keeps getting thrown under the bus,” he said.

He added that none of the airline staff he spoke with recently agreed with the explanations circulating on social and traditional media regarding the December fare surge.

NCAA