NCAA Announces Expected Drop in Airfares After January

The Nigeria Civil Aviation Authority (NCAA) has denied allegations that government levies were the reason behind the notable spike in domestic airfares over the December holiday season.

According to the regulatory agency, market forces—specifically, higher passenger demand on busy routes over the Yuletide season—were the primary cause of the fare rise.

The NCAA’s Director of Public Affairs and Consumer Protection, Michael Achimugu, reportedly provided the clarification in a Sunday post on his 𝕏 account.

Achimugu clarified that the increase in ticket costs was not specific to the aviation industry but rather a yearly pattern linked to holiday tourism.

He claims that because of the increased demand during the holiday season, transportation costs, hotel rates, and food prices all go up.

It’s the power of the market. Nigerians are the target of this. It’s not the government here. There is no connection at all between taxes and airfares in December, he stated.

Noting that fares were anticipated to return to normal following the holiday rush, he continued by saying that there was no increase in aviation-related taxes in December.

“After the second week of January, airfares will probably decrease, and taxes did not increase in December,” Achimugu said.

The NCAA representative pointed out that the fare hikes did not apply consistently throughout the nation and were restricted to specific high-traffic routes.

He emphasized that these spikes happen every year during periods of high travel demand and subside when demand declines.

Achimugu also refuted assertions made by several domestic airline companies that the skyrocketing ticket costs in December were caused by hefty taxes and fees.

He labeled claims that airplanes pay up to eighteen various taxes as untrue.

“Any domestic airline that claims to pay eighteen taxes is lying. I’ve discussed this on big news outlets, national television, and through my X account,” he stated.

He revealed that all domestic airlines had been contacted by the Authority over the matter, and the airlines themselves acknowledged that they do not pay the amounts that are frequently mentioned in public.

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

The NCAA’s stance comes after Allen Onyema, the CEO of Air Peace, asserted on Sunday that Nigerians pay the lowest domestic airfares worldwide.

Onyema claimed that after taxes and fees, airlines only keep roughly ₦81,000 from a ₦350,000 ticket, putting operators under a lot of financial strain.

Achimugu responded to the allegation by stating that the story was false and did not accurately depict industry realities.

“This 350k and 81k narrative is beyond me,” he remarked.

Achimugu also questioned how tickets for flights lasting less than an hour could fetch up to ₦500,000, given that neither taxes nor jet fuel prices had increased during that time.

“Why did tickets sell for as much as ₦500,000 for a 45-minute trip when the said taxes did not increase if high taxes were the reason airfares were ₦150,000 to ₦200,000?” he inquired.

He stated that conversations with key NCAA departments, airline employees, and travel agencies refuted allegations that taxes were to blame for the December cost increase.

The NCAA spokesperson also voiced alarm about what he called persistent attempts to place the responsibility on the government, despite what he claimed was the present administration’s extraordinary support for domestic carriers.

He mentioned that local airlines now have access to dry-leased aircraft, which they had not had for decades, thanks to recent regulatory changes.

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

Achimugu came to the conclusion that the explanation provided for the fare increase in December was erratic and untenable.

He stated, “It is even ironic that, in the same statement, it is claimed 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.”

None of the airline employees he recently spoke with, he continued, agreed with the justifications that were making the rounds in both traditional and social media.