Nigeria Airfare Hikes Not Caused By Government Taxes

The Nigeria Civil Aviation Authority (NCAA) has refuted claims that the recent surge in domestic airfares was caused by government taxes. According to Michael Achimugu, Director of Public Affairs and Consumer Protection of the NCAA, the increase in airfares was driven by market forces, particularly high demand during the festive season. Achimugu explained that the fare increases were limited to certain high-traffic routes and are a recurring annual trend linked to festive travel demand.

The NCAA’s position comes amid comments by airline operators that excessive taxes and charges were responsible for the high ticket prices witnessed during the yuletide period. However, Achimugu dismissed these claims, stating that no domestic airline in Nigeria pays as many as 18 taxes, describing such claims as false and misleading. He noted that the Authority had repeatedly engaged domestic carriers on the issue, and airlines themselves admitted they do not pay the volume of taxes often cited publicly.

Achimugu questioned the justification for tickets selling for as high as 500,000 for flights lasting less than an hour when there had been no increase in taxes or jet fuel prices during the period. He expressed concern over what he described as repeated attempts to blame the government, despite unprecedented support for domestic operators under the current administration. This includes recent policy reforms that now allow local airlines access to dry-leased aircraft, a development that had not been available to them for decades.

The NCAA’s clarification comes as the aviation industry continues to grapple with the challenges of high operating costs and fluctuating demand. The Authority’s monitoring of industry practices and discussions with airlines, travel agents, and relevant departments do not support the narrative that taxes are responsible for the December fare surge. As the industry looks to recover from the festive season, the NCAA’s stance is likely to spark further debate on the factors driving airfare prices in Nigeria. With the government’s support for domestic carriers, the focus is expected to shift towards finding sustainable solutions to the industry’s challenges.

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