NCAA disagrees with Air Peace boss on taxes responsible for hike in fare

The Nigerian Civil Aviation Authority (NCAA) has openly clashed with Air Peace Chairman, Allen Onyema, over the ongoing hike in domestic airfares, dismissing claims that multiple government taxes are responsible for the spike.

In a sharp reaction on Sunday, the NCAA accused airlines of misleading the public and shifting blame to government for what it described as pure market-driven pricing.

Director of Public Affairs and Consumer Protection, Michael Achimugu, said no domestic airline pays the 18 taxes frequently cited to justify high ticket prices.

“Any domestic airline claiming it pays 18 taxes is lying. No domestic carrier pays 18 taxes for domestic flights,” Achimugu declared.

He questioned why airfares suddenly shot up in December when there had been no increase in taxes or jet fuel prices.

“If these so-called taxes are the reason fares are high, when were they increased? Why are tickets selling for N500,000 for a 45-minute flight?” he asked.

Achimugu said the NCAA had summoned domestic airlines to explain the claims and that all of them admitted they do not pay the volume of taxes being publicly circulated.

He accused airline operators of unfairly attacking the Federal Government despite what he described as massive support for the aviation industry under President Bola Ahmed Tinubu, Aviation Minister Festus Keyamo, and the DGCA, Capt. Chris Najomo.

The NCAA’s rebuttal followed comments by Onyema on ARISE News, where he claimed airlines lose money on return legs, especially on South-East routes, and alleged that 65–70 per cent of ticket revenue is swallowed by taxes, levies and charges.

Onyema described airlines as the “sacrificial lamb” of the aviation sector, insisting that high fares reflect operational realities and not profiteering.

But Achimugu dismissed the argument, calling it contradictory.

“It is ironic to say Nigeria has the cheapest domestic airfares in the world and still justify astronomical fares in December when nothing has increased,” he said.

According to the NCAA, the fare surge is seasonal and limited to high-traffic routes, insisting that the December rush, not government policy is driving prices.

“It is demand and supply. It is Nigerians on Nigerians. This is not government,” Achimugu said.