Taxes not behind December airfare hikes –NCAA, NANTA

By Chinelo Obogo

The Nigerian Civil Aviation Authority (NCAA) and the National Association of Nigerian Travel Agents (NANTA) have said that operational imbalance, surcharges and not taxation caused the increase in December fares.

This was stated during the Aviation Town Hall meeting with the theme: “High Air Fares: Are Airlines Really the Problem?” hosted by Sindy Foster of Avaero Capital Partners and Alex Nwuba, the President Aircraft Owners and Pilots Association.

The NCAA Director of Consumer Protection and Public Affairs, Michael Achimugu, who spoke at the event, explained that if taxes were the cause, fares would rise uniformly across the year. Instead, December fares rose because flights departing Lagos and Abuja to the South East operate at near-full capacity, while return flights often carry fewer passengers. He also rejected claims that government neglect caused the fare spike. Citing policy support, access to aircraft leasing, and approvals for international routes, Achimugu argued that government interventions have been consistent.

“There were no hikes in any taxes at all in December, so the explanation offered to Nigerians over the December airfare hike should never have been about 18 taxes or multiple taxation by the government. The conversation about the empty flights returning from the south should have been the explanation. This conversation requires honesty in totality if you want to truly resolve the issues.

“Even if everything else is taken care of and airfares reduced as operators demand, in December the same hikes will still occur regardless of any other factor. Long before this administration came into office, Nigerian airlines did not have access to dry leases. Largely, that situation has been resolved, yet astronomical ticket prices persist during peak periods.

“We are partners in progress. But until we have honest conversations about each component that determines airfares in Nigeria, including the operational imbalance, astronomical ticket prices will continue to frustrate passengers,” he said.

President of NANTA, Yinka Folami, said the airline’s surcharges were one of the reasons for the increase in fares. He said travel agents have observed these fluctuations and pleaded with airlines to adopt global best practices, including early inventory release for peak periods.

“What you find for January, February, you’ll find out that the airline-imposed charges have gone down by about 50%. That’s why you now get a one-way ticket for between N120,000, N140,000, and N150,000, unlike what it was in December. When you know that we are approaching the peak seasons, allow advanced purchases. Allow me to buy my ticket three, four, or five months ahead of Christmas,” he said.

Contributing to the conversation, Foster pointed out that capacity constraints, not just pricing, drive astronomical ticket prices. “Either capacity increases, meaning more seats are available to spread costs, or underlying costs come down. Without either, the loop will persist, and astronomical ticket prices remain inevitable,” she said.