The Nigerian Civil Aviation Authority (NCAA) has disagreed with airline operators over claims that rising airfares are being driven by multiple taxation in the sector.
Chairman of Air Peace, Mr. Allen Onyema, fingered high taxes as one of the reasons for the increase in fares and warned that with the new tax laws expected to take effect from January 1, 2026, air tickets could rise to over N1 million.
Speaking on Arise TV, Onyema, who is also the Vice Chairman of the Airline Operators of Nigeria (AON), said: “Nigerian airlines are heavily overburdened by taxes, levies, and all manner of charges. The tax law of 2020 removed customs duties on imported aircraft, imported aircraft spares and engines, removed VAT on imported aircraft and other spare parts, and removed VAT on ticket fares. That is the 2020 Act.
“With 7.5 per cent VAT on ticket fares starting from January, ticket prices will hit over one million naira soon. In the annex to the International Civil Aviation Organization (ICAO), it is stated that VAT should not be charged on ticket fares, but that is done here.”
Meanwhile, the Director of Public Affairs and Consumer Protection at the NCAA, Mr. Mike Achimugu, countered the airlines on X, saying they were trying to throw the government under the bus.
He stated: “Lies have been told over this matter, over and over. I have addressed this on national TV, major news platforms, and via my X handle. While the NCAA does not regulate airfares, I have invited all domestic airlines, bar none, and asked them about these taxes they keep talking about on TV. They all admitted to not paying the volume of taxes being bandied about.
“I don’t understand this N350,000 and N81,000 narrative, but I know that, for the kind of support that President Bola Tinubu, the Aviation Minister, Festus Keyamo, and the Director-General of the NCAA, 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.
“It is even ironic that, in the same breath, 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 prices.
“If my invitations to the airlines themselves, my discussions with travel agents, and consultations with the relevant departments within the authority did not support the narrative being pushed, I don’t see how this is sustainable.
“If high taxes were the reason airfares were between N150,000 and N200,000, why did tickets go as high as N500,000 for a 45-minute trip when the said taxes did not increase?
“And this is happening at a time when Festus Keyamo has ensured that domestic carriers now have access to dry-lease aircraft—something they have not had in decades.”
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