The Nigerian Civil Aviation Authority (NCAA) has disputed claims made by Air Peace CEO Allen Onyema, who attributed the recent increase in domestic airfares to heavy taxes imposed by the government. In a statement posted on a social media platform, NCAA’s Director of Public Affairs and Consumer Protection, Michael Achimugu, described allegations of excessive taxation on domestic flights as untrue. This response came after Onyema’s comments during an interview with Arise Television, where he blamed high airfares on multiple taxes and warned of potential further increases if new tax laws are implemented in January.
Achimugu argued that domestic airlines in Nigeria do not pay 18 different taxes, stating that any carrier claiming to do so is inaccurate. He emphasized that market forces, particularly demand and supply, are driving the current high airfares. Achimugu questioned why airfares have risen sharply in December, suggesting that even if taxes were a factor, the recent increase would not be solely attributed to taxation.
The NCAA director noted that the government, led by President Bola Ahmed Tinubu, the Minister of Aviation and Aerospace Development, Festus Keyamo, and the Director General of the NCAA, Capt. Chris Najomo, has provided significant support to domestic airlines. Achimugu expressed surprise that the government continues to be blamed for the high airfares, despite this support.
The dispute between the NCAA and Air Peace comes amid rising concerns over the cost of domestic air travel in Nigeria. The introduction of new tax laws in January is expected to have an impact on the aviation industry, although the extent of this impact is still uncertain. As the debate continues, the NCAA and domestic airlines will likely remain under scrutiny, with passengers and stakeholders closely monitoring developments in the sector. The NCAA’s stance on taxation and airfares highlights the complex interplay between government policies, market forces, and the aviation industry, underscoring the need for ongoing dialogue and collaboration to address the challenges facing domestic air travel in Nigeria.
