The Nigerian Civil Aviation Authority (NCAA) has challenged the Chairman of Air Peace, Allen Onyema, over the recent rise in domestic airfares, rejecting his claim that government taxes fueled the increases.
In a statement the NCAA said Onyema’s assertion that “excessive tax burdens” forced airlines to raise ticket prices does not reflect the reality of the aviation industry. The regulator said taxes account for only a small portion of the total cost of flying in Nigeria.
According to the NCAA, the surge in airfares stems mainly from rising operational costs, especially high jet fuel prices, forex volatility, maintenance expenses, and the weak state of aviation infrastructure. These factors, the authority said, have placed tremendous strain on airline budgets.
“We disagree with the narrative that taxes are the primary driver of fare increases,” the NCAA said. “Aviation taxation in Nigeria is competitive compared to other markets. Other cost pressures have a far greater impact.”
The regulator urged airline operators to focus on efficiency and cost‑management strategies. It also assured travellers that it is engaging with stakeholders to explore long‑term solutions that could help stabilise fares.
Onyema had earlier suggested that federal, state, and airport levies contributed significantly to the pricing spike, calling on government to review regulatory charges. He argued that lower taxes would ease the burden on passengers.
However, the NCAA dismissed this position, urging airlines to be transparent about their pricing models and reassure the public that they operate fairly.
Travel industry experts say the dialogue highlights broader structural challenges in Nigeria’s aviation sector. They call for collective action from government, regulators, and airlines to improve cost efficiency and protect passengers’ interests.
