Home » December Airfare Hike Driven by Market Forces, Not Taxes – NCAA

December Airfare Hike Driven by Market Forces, Not Taxes – NCAA

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The Nigeria Civil Aviation Authority (NCAA) has debunked claims that the rise in domestic airfares recorded in December was caused by government taxes.

Michael Achimugu, Director of Public Affairs and Consumer Protection of the NCAA, clarified in a post on his X handle on Sunday.

According to him, market forces driven by high demand had caused the rise in airfares.

Achimugu noted that the December fare increases were limited to certain high-traffic routes and are a recurring annual trend linked to festive travel demand.

He maintained that the situation was not unique to aviation, pointing out that transport fares, accommodation prices, and food costs also rise during the festive season.

“It is market forces. It is Nigerians on Nigerians. This is not the government.

“December airfares have absolutely nothing to do with taxes. Taxes did not increase in December, and airfares will most likely go down after the second week of January,” he noted.

The NCAA’s position follows comments made by Air Peace Chief Executive Officer Allen Onyema during an interview on Sunday on Arise Tv, in which he stated that Nigerians pay some of the cheapest domestic airfares in the world.

Onyema claimed that airlines retain only about N81,000 from a N350,000 ticket after taxes and charges, leaving operators under severe financial strain.

The NCAA dismissed claims by some airline operators that excessive taxes and charges were responsible for the astronomical ticket prices witnessed during the yuletide period.

According to Achimugu, no domestic airline in Nigeria pays as many as 18 taxes, describing such claims as false and misleading.

He said the Authority had repeatedly engaged domestic carriers on the issue, noting that airlines themselves admitted they do not pay the volume of taxes often cited publicly.

“Any domestic airline that says they pay 18 taxes is lying. I have addressed this on national television, major news platforms, and via my X handle.

“I invited all domestic airlines and asked them directly about these taxes, and they all admitted they do not pay the figures being bandied around,” Achimugu said.

He stressed that while the NCAA does not regulate airfares, it closely monitors industry practices and discussions with airlines, travel agents, and relevant departments within the Authority do not support the narrative that taxes are responsible for the December fare surge.

Achimugu questioned the justification for tickets selling for as high as N500,000 for flights lasting less than an hour when there had been no increase in taxes or jet fuel prices during the period.

“If high taxes were the reason airfares were N150,000 to N200,000, why did tickets sell for as high as N500,000 for a 45-minute trip when the said taxes did not increase?” he asked.

He also expressed concern over what he described as repeated attempts to blame the government, despite unprecedented support for domestic operators under the current administration.

This includes recent policy reforms that now allow local airlines access to dry-leased aircraft, a development Achimugu said had not been available to them for decades.

“The kind of support President Bola Ahmed Tinubu, the Minister of Aviation and Aerospace Development, Festus Keyamo, and the Director General of Civil Aviation, Capt. Chris Najomo has given to domestic carriers does not justify why the government keeps getting thrown under the bus,” he said.

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