The Nigeria Civil Aviation Authority (NCAA) has rejected allegations that government levies were the reason behind the notable spike in domestic airfares over the December holiday season.
According to the regulatory agency, market forces—specifically, higher passenger demand on busy routes over the Yuletide season—were the driving force behind the fare rise.
According to reports, Michael Achimugu, the NCAA’s Director of Public Affairs and Consumer Protection, provided the explanation in a Sunday post on his 𝕏 account.
Achimugu clarified that the increase in ticket costs was not specific to the aviation industry, but rather a yearly pattern linked to holiday tourism.
He claims that increasing demand around the holidays also drives up the cost of food, lodging, and transportation.
“Market factors are to blame. It’s Nigerians against Nigerians. The government is not this. “Taxes have nothing to do with airfares in December,” he stated.
He noted 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 decrease 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 throughout 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 as demand declines.
Achimugu also refuted assertions made by several local airline carriers that the exorbitant ticket costs in December were caused by hefty taxes and fees.
He referred to claims that airlines pay up to eighteen separate taxes as untrue.
“Any domestic airline is lying if they claim to pay 18 taxes. He claimed, “I have addressed this on major news platforms, national television, and through my X handle.”
He revealed that all domestic airlines had been consulted by the Authority over the matter, and the airlines themselves acknowledged that they do not pay the amounts frequently mentioned in public.
Achimugu stated, “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.”
The NCAA’s stance comes after Allen Onyema, the CEO of Air Peace, asserted on Sunday that Nigerians pay the lowest domestic airfares in the world.
Onyema claimed 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 allegation by stating that the story was deceptive and did not accurately depict industry realities.
He remarked, “I don’t understand this 350k and 81k narrative.”
Achimugu also questioned how, in spite of no increase in taxes or jet fuel prices during that time, tickets for trips lasting less than an hour could fetch up to ₦500,000.
“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 agents, and pertinent NCAA departments refuted assertions that the December cost increase was caused by taxes.
The NCAA spokesperson also voiced alarm about what he called persistent attempts to place the responsibility on the government, even though he said that the current administration has provided unprecedented support for domestic airlines.
He mentioned that local airlines now have access to dry-leased aircraft thanks to recent regulatory changes, something they had not had for decades.
According to Achimugu, “the kind of support President Bola Ahmed Tinubu, Minister of Aviation and Aerospace Development Festus Keyamo, and 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.”
Achimugu came to the conclusion that the explanation provided for the fare increase in December was erratic and unsustainable.
He stated, “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 that came into play in December, even though there was no hike in taxes or jet fuel.”
He continued by saying that none of the airline employees he recently spoke with agreed with the justifications that were making the rounds in traditional and social media.
