The Nigeria Civil Aviation Authority (NCAA) has dismissed claims that the sharp rise in domestic airfares during the December festive season was caused by government taxes, insisting the increase was driven by market forces.
According to the aviation regulator, higher passenger demand on major routes during the yuletide period is responsible for the spike in ticket prices, a trend it described as annual and not peculiar to the aviation industry.
The NCAA’s Director of Public Affairs and Consumer Protection, Michael Achimugu, made this clarification on Sunday via his 𝕏 (formerly Twitter) handle, following widespread public complaints and comments from airline operators.
Achimugu explained that price increases during the festive season cut across several sectors, including road transportation, hotel accommodation, and food services, largely due to increased demand.
“It is market forces. It is Nigerians on Nigerians. This is not the government. December airfares have absolutely nothing to do with taxes,” he stated.
He stressed that there was no increase in aviation-related taxes in December and noted that ticket prices typically decline once the festive rush subsides.
“Taxes did not increase in December, and airfares will most likely go down after the second week of January,” he said.
The NCAA spokesperson also clarified that the fare hikes were not nationwide but were limited to certain high-traffic routes, adding that such spikes ease once passenger demand drops.
Achimugu further faulted claims by some domestic airline operators that excessive taxes and charges were responsible for the astronomical fares recorded in December. He described as false assertions that airlines pay as many as 18 different taxes.
“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,” he said.
He disclosed that the NCAA had directly engaged domestic airlines on the matter, noting that operators themselves admitted they do not pay the figures often cited publicly.
“I invited all domestic airlines and asked them directly about these taxes, and they all admitted they do not pay the volume of taxes being bandied around,” Achimugu added.
The NCAA’s comments followed remarks by Air Peace Chairman and Chief Executive Officer, Allen Onyema, who claimed that Nigerians pay some of the cheapest domestic airfares globally. Onyema had argued that airlines retain only about ₦81,000 from a ₦350,000 ticket after taxes and charges, placing operators under severe financial strain.
Reacting to the claim, Achimugu described the narrative as misleading and inconsistent with industry realities.
“I don’t understand this ₦350,000 and ₦81,000 narrative,” he said.
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He questioned how airfares 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.
According to Achimugu, consultations with airline staff, travel agents, and relevant NCAA departments did not support claims that government taxes were responsible for the December fare surge.
He also 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.
Achimugu cited recent policy reforms that now allow local airlines to access dry-leased aircraft—an option he said had been unavailable 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, have given to domestic carriers does not justify why the government keeps getting thrown under the bus,” he said.
He concluded that the justifications being offered for the December fare increases were inconsistent and unsustainable.
“It is ironic that, in the same statement, it is alleged that Nigerians pay the lowest domestic airfares in the world while also justifying the astronomical fares that emerged in December, even though there was no hike in taxes or jet fuel,” Achimugu said.
He added that none of the airline personnel he recently spoke with agreed with the explanations circulating across social and traditional media.
