The Nigerian Civil Aviation Authority (NCAA) has rejected claims that multiple government taxes are responsible for rising domestic airfares, stressing that airlines do not pay the numerous levies often cited and that ticket prices are largely influenced by demand and supply.
In a statement posted on X on Sunday, the NCAA’s Director of Public Affairs and Consumer Protection, Michael Achimugu, described repeated accusations of excessive taxation on local flights as misleading.
Sharing excerpts from an earlier interview, Achimugu said no domestic airline is subjected to as many as 18 taxes for internal routes. He explained that fare increases, particularly during peak travel periods, are a reflection of market realities rather than new or excessive government charges.
According to him, if taxes were truly the cause of higher ticket prices, there would have been a corresponding recent increase in those charges, which has not occurred. He noted that the surge in fares during December is driven by increased passenger demand.
Achimugu further stated that although the NCAA does not regulate airfare pricing, the authority engaged domestic airlines on the issue, and they admitted they do not pay the volume of taxes being widely circulated. He expressed concern that despite the support given to local carriers by President Bola Ahmed Tinubu, the Minister of Aviation Festus Keyamo, and the Director-General of Civil Aviation Captain Chris Najomo, the government continues to be blamed for fare hikes.
The clarification follows comments by Air Peace Chairman, Allen Onyema, who told ARISE News that flights to the South-East often return with few passengers, even though airlines still incur full operational costs for both outbound and inbound journeys.
Onyema claimed that a significant portion of ticket revenue does not go to airlines but is absorbed by taxes, levies, and other charges, describing airlines as bearing the brunt of industry challenges. He maintained that ticket prices reflect operating costs and not profiteering, adding that fares vary depending on booking time and demand, with cheaper options available for early purchases.
Responding, Achimugu questioned the logic behind claims of excessive taxation, noting that neither taxes nor jet fuel prices have increased recently. He pointed out that if taxes were responsible for fares in the range of ₦150,000 to ₦200,000, it would be difficult to explain ticket prices rising to ₦500,000 for short flights without any corresponding tax hike.
He concluded that the December spike in airfares is demand-driven and not limited to aviation alone.
“Higher prices are seen across board—transport fares, accommodation, and food. It is a seasonal demand issue. It is Nigerians responding to market forces, not government policy,” he said.
