The Nigeria Civil Aviation Authority (NCAA) has rejected allegations that government levies were the reason behind the dramatic rise in domestic airfares over the December holiday season.
According to the regulatory agency, market forces—specifically, rising passenger demand on busy routes over the Yuletide season—were the driving force behind the fare increase.
According to reports, Michael Achimugu, the NCAA’s Director of Public Affairs and Consumer Protection, provided the explanation in a post on his 𝕏 account on Sunday.
Achimugu clarified that the increase in ticket prices was not specific to the aviation industry, but rather a yearly pattern linked to celebratory travel.
He claims that because of the increased demand, transportation costs, hotel rates, and food costs also increase during the Christmas season.
It is due to market forces. Nigerians on Nigerians, that is. The government isn’t this. “Taxes have no bearing whatsoever on December airfares,” he stated.
He also mentioned that there was no increase in aviation-related taxes in December, pointing out that following the holiday rush, fares were anticipated to return to normal.
“Airfares will probably go down after the second week of January, and taxes did not increase in December,” Achimugu said.
The NCAA spokeswoman pointed out that the fare hikes did not apply consistently across the nation and were restricted to specific high-traffic routes.
He emphasized that these spikes happen every year during the busiest travel times and subside when demand declines.
Achimugu also refuted assertions made by certain domestic airlines that the exorbitant ticket prices seen in December were caused by hefty taxes and fees.
He characterized claims that airlines pay up to eighteen various taxes as untrue.
“Any domestic airline is lying if they claim to pay 18 taxes.” “I have addressed this on major news platforms, national television, and through my X handle,” he stated.
He revealed that all domestic airlines had been consulted by the Authority on the matter, and that the airlines themselves acknowledged that they do not pay the amounts that are frequently mentioned in public.
“I asked all domestic airlines directly about these taxes after inviting them, and they all acknowledged that they do not pay the amount of taxes being bandied around,” Achimugu stated.
The NCAA’s stance comes after Air Peace CEO Allen Onyema asserted on Sunday that Nigerians pay the lowest domestic airfares in the world.
Onyema had said that after taxes and fees, airlines only keep roughly ₦81,000 of a ₦350,000 ticket, putting operators under extreme financial strain.
Achimugu responded to the accusation by stating that the story was false and did not accurately depict industry realities.
He declared, “I don’t understand this 350k and 81k narrative.”
Achimugu also questioned how tickets for flights lasting less than an hour could fetch up to ₦500,000 when there was no increase in taxes or jet fuel prices during that time.
“Why did tickets sell for as much as ₦500,000 for a 45-minute trip when the said taxes did not increase, if high taxes were the reason airfares were ₦150,000 to ₦200,000?” he questioned.
He stated that conversations with airline employees, travel agencies, and pertinent NCAA departments refuted assertions that the December cost increase was caused by taxes.
The NCAA spokesperson also voiced concern about what he called persistent attempts to place the blame on the government, despite what he claimed was the present administration’s unparalleled support for domestic carriers.
He mentioned that local airlines now have access to dry-leased aircraft thanks to recent regulatory changes, something they had not been able to do for decades.
“The support that President Bola Ahmed Tinubu, Festus Keyamo, Minister of Aviation and Aerospace Development, and Capt. Chris Najomo, Director General of Civil Aviation, have provided to domestic carriers does not justify why the government continues to be thrown under the bus,” Achimugu declared.
Achimugu came to the conclusion that the explanation put out for the December fare increase was erratic and unsustainable.
He stated, “It is even ironic that, in the same statement, it is claimed that Nigerians pay the lowest domestic airfares in the world while also justifying the astronomical airfares that came into play in December, even though there was no hike in taxes or jet fuel.”
He went on to say that none of the airline employees he recently met with agreed with the justifications that were making the rounds in traditional and social media.
