The Nigeria Civil Aviation Authority (NCAA) has officially addressed the significant spike in domestic air ticket prices witnessed during the recent December festive season, attributing it primarily to market dynamics and passenger demand rather than increased government levies.
NCAA Dismisses Claims of Multiple Airline Taxes
In a statement made on Sunday, December 29, 2024, the Director of Public Affairs and Consumer Protection at the NCAA, Mr. Michael Achimugu, countered widespread claims that excessive taxation was behind the fare hikes. Achimugu, speaking via his official X (formerly Twitter) handle, labeled assertions that domestic carriers pay up to 18 different taxes as "inaccurate and misleading."
He revealed that the authority has held repeated discussions with airline operators on this subject. According to Achimugu, the airlines themselves have admitted in these engagements that they do not pay the volume of taxes often publicly cited. "The figures being circulated do not reflect reality," he stated, based on these confirmations.
Market Forces and Seasonal Demand Behind Price Surge
The NCAA explained that while it does not directly regulate airfares, it actively monitors industry practices. Its consultations with airlines, travel agents, and internal departments found no evidence linking the December price surge to any increase in taxes or the cost of aviation fuel (Jet A1).
Achimugu posed a critical question to underscore this point: "If high taxes were responsible for fares of N150,000 to N200,000, why did tickets rise to N500,000 for a 45-minute flight when those taxes did not change?" He emphasized that the fare increases were particularly concentrated on high-traffic routes and described the trend as a predictable seasonal occurrence, similar to annual hikes in transport, accommodation, and food prices during festive periods.
NCAA Criticizes Operators' Recurring Blame on Government
The authority also expressed concern over a pattern of blaming the government for industry challenges. Achimugu highlighted that the current administration has implemented policy reforms to support local operators, such as facilitating access to dry-leased aircraft—a long-standing demand of the sector.
This clarification from the NCAA comes amid contrasting remarks from industry leaders like Air Peace CEO, Mr. Allen Onyema, who has argued that Nigerians pay some of the world's cheapest domestic fares and that airlines retain only a small fraction of ticket prices after taxes and charges. Meanwhile, airline operators have warned that a new tax framework could push economy-class fares to new highs, potentially impacting the broader economy.
The NCAA maintains that with the conclusion of the peak travel season, airfares are expected to normalize, returning to levels dictated by regular market conditions rather than festive demand.
