NCAA Clarifies: December Airfare Hikes Not Driven by Government Taxes

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The Nigeria Civil Aviation Authority (NCAA) has refuted claims that recent increases in domestic airfares were caused by government-imposed taxes.

Michael Achimugu, NCAA Director of Public Affairs and Consumer Protection, explained in a statement on his X handle on Sunday that the surge in ticket prices was due to market dynamics and high festive travel demand, particularly on high-traffic routes.

“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,” Achimugu said.

He dismissed assertions by some airline operators that domestic carriers pay excessive taxes, noting that no airline in Nigeria pays as many as 18 taxes, contrary to claims circulating publicly. “Any domestic airline that says they pay 18 taxes is lying. 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,” he added.

Achimugu also questioned the rationale behind tickets selling for up to ₦500,000 for short flights, pointing out that taxes and jet fuel prices had not increased during the period.

The NCAA’s clarification comes amid comments by Allen Onyema, Chief Executive Officer of Air Peace, who stated that Nigerians pay some of the cheapest domestic airfares globally. Onyema noted that airlines retain only about ₦81,000 from a ₦350,000 ticket after taxes and charges, placing significant financial strain on operators.

While NCAA does not regulate fares, the authority emphasized its ongoing engagement with airlines and industry stakeholders to ensure transparency. Achimugu highlighted the support provided by President Bola Ahmed Tinubu, Aviation Minister Festus Keyamo, and NCAA Director General Capt. Chris Najomo, including policy reforms allowing local airlines access to dry-leased aircraft—a provision not 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.

The NCAA urged the public and media to rely on verified information, stressing that the December airfare hikes reflect seasonal demand rather than government taxation.

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