Aviation regulator says airlines do not pay “18 taxes” as December travel demand pushes ticket prices higher
The Nigerian Civil Aviation Authority (NCAA) has rejected claims that domestic airfares are inflated by multiple government taxes, insisting that airlines are not subjected to the levies being widely cited and that recent fare increases are driven by demand-and-supply dynamics.
In a statement posted on X (formerly Twitter) on Sunday, the Director of Public Affairs and Consumer Protection, Michael Achimugu, described recurring allegations of excessive taxation on domestic flights as misleading and unsupported by facts.
Sharing excerpts from a previous interview, Achimugu said no domestic airline operating within Nigeria pays the widely claimed 18 different taxes.
“Any domestic carrier operating domestic flights that says they are paying 18 taxes is simply not telling the truth,” he said. “No domestic airline pays 18 taxes on domestic routes.”
He explained that the spike in airfares, particularly during the festive season, is consistent with market realities, adding that there has been no recent increase in aviation taxes to justify the sharp jump in ticket prices.
“If we assume for a moment that there are 18 taxes, which of them was increased recently to explain why fares are different in December?” he asked.
Achimugu noted that while the NCAA does not regulate ticket pricing, the authority engaged domestic airlines directly to clarify the issue. According to him, the airlines acknowledged that they do not pay the volume of taxes often cited in public discussions.
He expressed concern that the government continues to be blamed despite what he described as significant support for the aviation sector from President Bola Ahmed Tinubu, Minister of Aviation and Aerospace Development, Festus Keyamo, and the Director General of Civil Aviation, Captain Chris Najomo.
The clarification follows comments by Air Peace Chairman and CEO, Allen Onyema, who told ARISE News that airlines incur full operational costs even when return flights particularly on South-East routes operate with low passenger numbers.
Onyema argued that a significant portion of ticket revenue goes to levies, taxes and other charges, describing airlines as the “sacrificial lamb” of the aviation industry. He added that ticket prices vary depending on demand and booking time, with lower fares often available to passengers who book early. He also maintained that Nigeria’s domestic airfares remain relatively low when compared globally.
Responding to allegations of profiteering, Achimugu questioned how soaring fares could be blamed on taxes when there have been no increases in levies or aviation fuel prices.
“It is ironic to claim that Nigerians pay the lowest domestic airfares in the world while at the same time justifying astronomical fares in December, even though there was no increase in taxes or jet fuel,” he said.
He further asked why ticket prices reportedly reached as high as ₦500,000 for short-haul flights if taxes remained unchanged.
Achimugu concluded that the seasonal rise in airfares is largely demand-driven and not unique to aviation.
“It’s not just airfares,” he said. “Bus fares, accommodation, food prices, everything goes up in December. This is about market forces. Nigerians responding to Nigerians. It is not government policy.”
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