The Nigerian Civil Aviation Authority (NCAA) has dismissed claims that multiple government taxes are responsible for soaring domestic airfares, stating that airlines do not pay the alleged levies and attributing price increases to normal market dynamics of demand and supply.
Director of Public Affairs and Consumer Protection, Michael Achimugu, clarified the matter in a statement on X on Sunday, describing repeated allegations of excessive taxation on domestic flights as “unfounded.”
“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,” Achimugu said, resharing a past interview. “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 added that while NCAA does not regulate airfares, it had invited all domestic airlines to clarify the issue. “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.”
The clarification follows comments by Air Peace CEO Allen Onyema, who had told ARISE News that many return flights on South-East routes operate nearly empty, yet airlines bear the full cost of both legs. Onyema claimed that “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 industry. He stressed that high fares reflect operational realities rather than exploitation and noted that ticket prices vary based on timing and demand, with cheaper fares available for early bookings. Comparing Nigeria with international markets, Onyema said domestic fares remain among the lowest globally.
Achimugu questioned claims of profiteering, noting the lack of recent tax hikes or increases in jet fuel prices. “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.
“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?” he added.
Achimugu concluded by emphasising that the December surge in fares is driven by market forces. “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.”