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By Chinelo Obogo
The Nigerian Civil Aviation Authority (NCAA) has dismissed claims by Air Peace Chairman and Chief Executive Officer, Allen Onyema, that excessive taxation is the main driver of high domestic airfares, branding the allegation as false and misleading.
During a recent interview on Arise TV, Onyema said that a one-hour flight costs over $400 abroad, but in Nigeria, tickets are still sold for N125,000 (less than $60).
He further contended that the pricing imbalance has contributed to the high failure rate of local airlines, noting that more than 80 Nigerian carriers have collapsed over the years.
He added that airlines keep just 23% of a N350,000 ticket after taxes and charges.
Reacting to the development, the NCAA described the tax complaints as lies and blamed the increase in fares on the festive season, with taxes at only 5–6%.
Critics of the airline also highlighted cheaper flights on airlines such as Ryanair, which are under $125, as airlines cite fuel costs of N4–7 million per flight and other pressures amid no fare caps.
On his X handle, the NCAA’s spokesperson, Michael Achimugu, stated that after summoning all domestic airlines, they all admitted to not paying the volume of taxes being publicly complained about.
He, however, blamed the fare hikes witnessed in December on the high demand of the festive season, noting there was no concurrent increase in official taxes or jet fuel costs at the time.
Achimugu said: “Lies have been told 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 of the 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 around.
“I don’t understand this 350k and 81k narrative, but I know that, for the kind of support that President Bola 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.
“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.
“If my inviting the airlines themselves, speaking with travel agents, and the relevant departments within the Authority did not agree with the narrative being pushed, I don’t see how this is sustainable. If high taxes were the reason why airfares were 150k–200k, why did tickets go for as high as 500k 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. Not a single airline staff member I spoke with two weeks ago agreed with the excuses I am reading on social and traditional media”, he stated.
