Domestic airlines alleging 18 taxes are liars, NCAA rejects airfare hike blame

Juliet Anine
4 Min Read

The Nigerian Civil Aviation Authority has dismissed claims that multiple taxes are responsible for the recent rise in domestic airfares, insisting that airlines do not pay the number of levies being mentioned in public discussions.

The NCAA’s Director of Public Affairs and Consumer Protection, Michael Achimugu, made this known in a statement shared on Sunday, where he faulted repeated allegations that government taxes are driving up ticket prices during the festive season.

Achimugu said, “Any domestic carrier operating domestic flights that says that they are paying 18 taxes is a liar. No domestic carrier pays 18 taxes for domestic flights.”

According to him, the sharp increase in ticket prices in December is largely due to demand and supply, not new or increased government charges.

“We understand the high air fares this period are down to market forces—demand and supply. Let us assume there are 18 taxes, where those taxes increased recently, so why is it different in December?” he asked.

He explained that although the NCAA does not fix airfares, the authority invited domestic airlines to discussions on the issue, during which they admitted they were not paying the volume of taxes being circulated online.

“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,” Achimugu said.

The clarification follows comments by Air Peace Chairman, Allen Onyema, who recently blamed high ticket prices on operational costs and charges beyond airlines’ control.

Onyema had said, “Almost 65 to 70 per cent of that money is not coming to the airlines. They’re going somewhere else—levies, taxes, and other charges,” describing airlines as the “sacrificial lamb” of the aviation industry.

He also explained that many return flights, especially on South-East routes, often fly nearly empty on one leg, while airlines still bear the full cost of operations. According to him, fares also vary based on booking time and demand, adding that domestic airfares in Nigeria remain among the lowest globally when compared with other countries.

However, Achimugu questioned the logic behind claims of excessive taxation, noting that neither taxes nor jet fuel prices had increased recently.

“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 in December, even though there was no hike in taxes or jet fuel,” he said.

He added, “If high taxes were the reason why airfares were 150k–200k, why did tickets sell for as high as 500k for a 45-minute trip when the said taxes did not increase?”

Achimugu concluded that the surge in December fares is not limited to air travel alone, stressing that similar price increases are seen across other sectors during the festive period.

“As far as I am concerned, the astronomical airfares in December are limited to certain destinations because of high demand. It is never just the airfares—it is bus fares, Airbnb rates, the price of food. It is market forces. It is Nigerians on Nigerians. This is not government,” he said.

 

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