The Nigerian Civil Aviation Authority [NCAA] has rejected claims by airline operators that escalating airfares are primarily driven by multiple taxation in the aviation sector.
Barr. Allen Onyema, Chairman of Air Peace had attributed rising ticket prices to heavy tax burdens on airlines, warning that with new tax provisions expected to take effect from January 1, 2026, airfares could exceed ₦1 million. Speaking on Arise TV, Onyema, who also serves as Vice Chairman of the Airline Operators of Nigeria [AON], said Nigerian airlines are weighed down by numerous taxes, levies and charges.
According to him, the Finance Act 2020 removed customs duties on imported aircraft, spare parts and engines, as well as Value Added Tax [VAT] on aircraft imports, spare parts and ticket fares. He, however, warned that the reintroduction of a 7.5 per cent VAT on ticket fares from January could push fares sharply upward.
“With 7.5 per cent on ticket fares starting from January, ticket prices will soon hit over a million naira. Annexes of the International Civil Aviation Organisation [ICAO] state clearly that VAT should not be charged on ticket fares, but that is what is being done here,” Onyema said.
In response, the Director of Public Affairs and Consumer Protection at the NCAA, Mike Achimugu, dismissed the airlines’ claims, accusing them of unfairly blaming the government for fare increases.
In a posting on X [formerly Twitter], Achimugu said the narrative around excessive taxation had been repeatedly misrepresented. He noted that while the NCAA does not regulate airfares, the authority had engaged directly with all domestic airlines to clarify the issue.
“Lies have been told over this matter repeatedly. I have addressed this on national television, major news platforms and on my X handle. When I invited all domestic airlines and asked them about these so-called taxes, they all admitted they were not paying the volumes being bandied about in the media,” he stated.
Achimugu questioned the consistency of the airlines’ arguments, noting that government support for the sector under President Bola Tinubu, the Minister of Aviation and Aerospace Development, Festus Keyamo, and the Director General of the NCAA, Capt. Chris Najomo, had been substantial.
“I don’t understand this ₦350,000 and ₦81,000 tax narrative. Given the level of support the government has extended to domestic carriers, it is difficult to justify constantly throwing the government under the bus,” he said.
He also described as ironic the claim that Nigerians pay some of the lowest domestic airfares globally, while airlines simultaneously justify the sharp fare hikes recorded in December despite no increase in taxes or jet fuel prices.
“If taxes were responsible for fares of ₦150,000–₦200,000, why did tickets rise to as much as ₦500,000 for a 45-minute flight when there was no corresponding increase in taxes?” Achimugu queried.
He added that the recent policy enabling domestic airlines to access dry-leased aircraft, an option unavailable to them for decades further weakened the argument that taxation alone was driving high fares.
By David Ukueku
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