Tax Tangle: Onyema, Achimugu Disagree on Nigeria’s Soaring Airfares

December 29, 2025
Nigeria Air: Airline Operators Hail Judiciary, Aviation Minister For Upholding Justice

Tax Tangle: Onyema, Achimugu Clash Over Nigeria’s Soaring Airfares

NCAA Reacts To PBA Article, Says Air Peace Not 'Forced’ To Clarify Alleged Safety Protocol Violation
Michael Achimugu, Director, Consumer Protection & Public Affairs, Nigeria Civil Aviation Authority (NCAA). Photo credit: @mikeachimugu01

The Nigerian Civil Aviation Authority (NCAA) has denied allegations that domestic airfares are inflated due to multiple taxes, attributing the recent surge to market forces. Director of Public Affairs and Consumer Protection, Michael Achimugu, stated that airlines do not pay the alleged levies, saying, “Any domestic carrier operating domestic flights that says they are paying 18 taxes is a liar. No domestic carrier pays 18 taxes for domestic flights” .

Join our WhatsApp Channel

Achimugu questioned the logic behind claims of excessive taxation, asking, “If high taxes were the reason why airfares were ₦150,000 to ₦200,000, why did tickets sell for as high as ₦500,000 when the said taxes did not increase?” He emphasized that the December fare surge is driven by high demand, stating, “As far as I am concerned, the astronomical airfares in December are limited to certain destinations because of high demand”.

READ ALSO: NCAA Explains Damage To Air Peace New Aircraft, Disrupted Flight, Absolves Airline of Wrongdoing

However, Air Peace CEO Allen Onyema disagreed, citing operational realities and excessive taxation. He said, “Almost 65 to 70 per cent of that money is not coming to the airlines. They’re going somewhere else—levies, taxes, and other charges,” adding that airlines are the “sacrificial lamb” of the industry. Onyema warned that new tax laws could push domestic airfares to ₦1 million, citing increased costs and VAT on aircraft imports.

READ ALSO:Flying To Tanzania Will Cost $90 More As New Passenger Levy Begins In November

The disagreement highlights the challenges facing Nigeria’s aviation sector, with airlines struggling to balance operational costs and passenger affordability.

+ posts

Prime Business Africa

Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.

Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.

He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.

Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.

Previous Story

Obi Confirms 2027 Presidential Bid During X Space Session

Next Story

Forest Guards and the Perils of Ungoverned Power

Featured Stories

Latest from Business News

Fuel Subsidy: World Bank Must Allow Africa’s Poor Breathe

World Bank Flags Taxes, Bribery as Constraints on Kenya Businesses

Written by Amanze Chinonye Kenya’s private sector faces higher costs and uncertainty from multiple taxes, regulatory hurdles and bribery, the World Bank said on Thursday, warning that the constraints are weighing on investment and business growth. While Kenya’s corporate income tax rate is

Rwanda Expands Fuel Imports Through Mombasa under Kenya Deal

Written by Amanze Chinonye Rwanda has begun importing bulk refined petroleum products through Kenya’s Mombasa port under a new government-to-government arrangement aimed at diversifying its fuel supply routes and strengthening energy security, with the first 40,000-tonne cargo arriving this week. Join our WhatsApp

Wealth Without Access is Stranded Wealth – Opiva Capital Chairman 

Written by Kamsiyochukwu Mbamalu The Chairman of Optiva Capital Partners, Franklin Nechi, has called on African entrepreneurs, investors and families to move beyond traditional wealth accumulation and embrace global access as a strategic tool for business growth, family security and intergenerational legacy. Nechi
Previous Story

Obi Confirms 2027 Presidential Bid During X Space Session

Next Story

Forest Guards and the Perils of Ungoverned Power

Don't Miss

Labour Crisis: Obidients Jeer, Boo Apapa, Prevent Him From Speaking to Journalists In Court 

Labour Crisis: Obidients Jeer, Boo Apapa, Prevent Him From Speaking to Journalists In Court 

There was mild drama at the Presidential Election Petitions Tribunal

Economy: Nigeria Hosts Global Investment Forum In New York

Nigerian government in collaboration with the Africa Business Roundtable, is