NCAA Disputes Airline Executive’s Claim of Excessive Taxes Driving Up Airfares

The Nigeria Civil Aviation Authority (NCAA) has publicly refuted claims that multiple government levies are responsible for high domestic airfares, stating that the primary driver of current ticket prices is market demand rather than taxation.

The statement from NCAA Director of Public Affairs and Consumer Protection, Michael Achimugu, came hours after Air Peace Chairman and CEO Allen Onyema warned in a television interview that new taxes could push domestic ticket prices to ₦1 million and risk forcing major carriers out of business.

Onyema had asserted that the aviation sector is “choking” under numerous overlapping charges, claiming that out of a typical ₦350,000 ticket, airlines retain only about ₦81,000, with the rest absorbed by government fees.

In response, Achimugu described repeated allegations of excessive taxation as unfounded. “Any domestic carrier operating domestic flights that says they are paying 18 taxes is a liar. No domestic carrier pays 18 taxes for domestic flights,” he stated.

He argued that the current surge in fares is consistent with seasonal demand. “We understand the high airfares this period are down to market forces—demand and supply,” Achimugu said, questioning why fares would rise sharply in December if taxes were the main cause.

While the NCAA does not regulate ticket pricing, Achimugu noted that the authority recently met with domestic carriers to clarify the issue and said airlines acknowledged they do not pay the volume of taxes often cited publicly.

He expressed disappointment that the government continues to be criticized despite its support for the industry. “For the kind of support that President Bola Ahmed Tinubu, Aviation Minister Festus Keyamo, and NCAA DGCA Chris Najomo have given to domestic carriers, I see no reason why the government keeps getting thrown under the bus via statements like this,” Achimugu added.

The exchange highlights ongoing tensions between regulators and operators over the financial pressures facing Nigeria’s aviation sector amid rising operational costs and passenger demand.