December Airfare Surge Driven by Demand, Not Taxes — NCAA Insists
Story: written by Uzuh Rita December 29,2025
The Nigeria Civil Aviation Authority (NCAA) has explained that the sharp increase in domestic flight ticket prices witnessed in December was a result of market dynamics fueled by high festive-season demand, not government taxes or charges.
Michael Achimugu, NCAA’s Director of Public Affairs and Consumer Protection, made this known in a post on his X handle on Sunday, rejecting claims by some airline operators that excessive taxation caused the spike in airfares during the yuletide period.
Achimugu described assertions that domestic airlines pay as many as 18 different taxes as inaccurate and misleading. He said the Authority has repeatedly engaged airline operators on the issue, adding that the airlines themselves have acknowledged they do not pay the number of taxes often mentioned publicly.
He stressed that although the NCAA does not set or regulate ticket prices, it closely monitors the aviation market. According to him, consultations with airlines, travel agents, and relevant NCAA departments do not support the narrative that taxes are responsible for the seasonal rise in fares.
Questioning the logic behind some ticket prices, Achimugu noted that fares reportedly climbed to as much as ₦500,000 for flights lasting less than an hour, despite no increase in taxes or aviation fuel costs during the period. He argued that if taxes were truly the cause, such drastic jumps would have been linked to a corresponding hike in government charges.
Achimugu also expressed concern over what he described as a growing tendency to blame the government, despite significant support provided to domestic airlines by the current administration. He cited recent reforms that now allow Nigerian carriers to access dry-leased aircraft, a policy shift he said had been unavailable for decades.
According to him, the December fare hikes were concentrated on busy routes and reflect a recurring yearly pattern associated with increased holiday travel. He added that similar price increases are common across other sectors, including road transport, hotels, and food services, during festive periods.
“It is purely market forces at work,” Achimugu said, noting that taxes remained unchanged in December and predicting that airfares would likely decline after the peak travel season in early January.
The NCAA’s clarification comes amid ongoing industry debates following remarks by Air Peace CEO Allen Onyema, who recently stated that Nigerian domestic airfares are among the cheapest globally. Onyema also claimed that airlines retain only a small portion of ticket revenues after deductions, leaving operators under heavy financial pressure.
