NCAA: December airfare surge driven by demand, not government taxes

The Nigeria Civil Aviation Authority (NCAA) says the sharp rise in domestic airfares in December was caused by market demand, not government taxes.

Michael Achimugu, Director of Public Affairs and Consumer Protection at NCAA, stated on his X handle that claims by some airlines that high taxes were responsible for the spike were misleading.

He explained that contrary to allegations that local airlines pay up to 18 different charges, discussions with operators show this is untrue.

“Any domestic airline that says they pay 18 taxes is lying,” Achimugu said, noting that airlines had privately confirmed they do not pay the figures often quoted in public.

Achimugu added that although NCAA does not set ticket prices, it monitors industry activities closely — and there was no evidence that taxes or jet fuel costs increased during the festive period.

He questioned why one-hour flights rose to as high as ₦500,000 if taxes supposedly remained the same.

The NCAA spokesperson also highlighted that the federal government has been supportive of local carriers through recent aviation reforms, including new policies allowing access to dry-leased aircraft.

According to him, the surge in December fares was limited to popular routes and is a recurring trend driven by holiday demand, similar to what happens with transport fares, hotel rates, and food prices during festive seasons.

“It is market forces, December airfares have absolutely nothing to do with taxes,” he said, predicting that fares are likely to drop from mid-January.

His comments follow remarks by Air Peace CEO Allen Onyema, who argued on Arise TV that Nigerian domestic ticket prices remain among the cheapest globally and that airlines keep only a small fraction of each ticket after deductions.