Prime Business Africa
Tax Tangle: Onyema, Achimugu Clash Over Nigeria’s Soaring Airfares
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 ChannelAchimugu 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”.
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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.
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The disagreement highlights the challenges facing Nigeria’s aviation sector, with airlines struggling to balance operational costs and passenger affordability.
