Govt Taxes Not Behind December Airfare Hikes – NCAA

The Nigeria Civil Aviation Authority (NCAA) has debunked claims that the rise in domestic airfares recorded in December was caused by government taxes.

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

According to him, market forces driven by high demand had caused the rise in airfares.

Achimugu noted that the December fare increases were limited to certain high-traffic routes and are a recurring annual trend linked to festive travel demand.

He maintained that the situation was not unique to aviation, pointing out that transport fares, accommodation prices, and food costs also rise during the festive season.

“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 noted.

“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 position comes amid comments by Allen Onyema, Air Peace Chief Executive Officer, on Sunday that Nigerians pay the cheapest domestic airfares globally. Onyema claimed that airlines retain only about ₦81,000 from a ₦350,000 ticket after taxes and charges, leaving operators under severe financial strain.

The NCAA dismissed claims by some airline operators that excessive taxes and charges were responsible for the astronomical ticket prices witnessed during the yuletide period.

According to Achimugu, no domestic airline in Nigeria pays as many as 18 taxes, describing such claims as false and misleading.

He said the Authority had repeatedly engaged domestic carriers on the issue, noting that airlines themselves admitted they do not pay the volume of taxes 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.

He stressed that while the NCAA does not regulate airfares, it closely monitors industry practices and discussions with airlines, travel agents, and relevant departments within the Authority do not support the narrative that taxes are responsible for the December fare surge.

Achimugu questioned the justification for tickets selling for as high as ₦500,000 for flights lasting less than an hour when there had been 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.

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He also expressed concern over what he described as repeated attempts to blame the government, despite unprecedented support for domestic operators under the current administration.

This includes recent policy reforms that now allow local airlines access to dry-leased aircraft, a development Achimugu said had not been available 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, has given to domestic carriers does not justify why the government keeps getting thrown under the bus.

“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.