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Watch Nigeria > Blog > News > NCAA Disputes Airline Tax Claims
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NCAA Disputes Airline Tax Claims

Last updated: December 29, 2025 6:18 am
Terfa Ukende
3 hours ago
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NCAA Disputes Airline Tax Claims
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The Nigerian Civil Aviation Authority has dismissed claims that home airfares are inflated as a consequence of a number of taxes, insisting that airways don’t pay the alleged levies and attributing fare will increase to regular market forces of demand and provide.

Director of Public Affairs and Shopper Safety Michael Achimugu, in a press release on X on Sunday, acknowledged that repeated allegations of extreme taxes by the federal government on home flights are unfounded.

Resharing a previous interview, Achimugu mentioned: “Any home service working home flights that claims that they’re paying 18 taxes is a liar. No home service pays 18 taxes for home flights.

“We perceive the excessive air fares this era are all the way down to market forces—demand and provide. Allow us to assume there are 18 taxes, the place these taxes elevated not too long ago, so why is it completely different in December?”

He added that whereas the NCAA doesn’t regulate airfares, it had invited all home airways to make clear the matter.

“All of them admitted to not paying the quantity of taxes being bandied round. I don’t perceive this 350k and 81k narrative, however I do know that, for the form of help that President Bola Ahmed Tinubu, the aviation minister, Festus Keyamo; and the DGCA, Capt. Chris Najomo have given to home carriers, I see no motive why the federal government retains getting thrown underneath the bus through statements like this.”

The clarification follows feedback by Air Peace CEO Allen Onyema, who advised ARISE Information that many return flights on South-East routes function practically empty, but airways bear the complete value of each legs.

Onyema added, “Virtually 65 to 70 per cent of that cash isn’t coming to the airways. They’re going someplace else—levies, taxes, and different prices,” describing airways because the “sacrificial lamb” of the trade.

He careworn that prime fares replicate operational realities quite than exploitation. Ticket costs additionally fluctuate based mostly on timing and demand, with cheaper fares out there for early bookings. Evaluating Nigeria with worldwide markets, Onyema mentioned home fares stay among the many lowest globally.

Achimugu questioned claims of profiteering, noting the dearth of tax hikes or gas will increase. “It’s even ironic that, in the identical assertion, it’s alleged that Nigerians pay the bottom home airfares on the earth whereas additionally justifying the astronomical airfares in December, despite the fact that there was no hike in taxes or jet gas.

“If excessive taxes have been the explanation why airfares have been 150k–200k, why did tickets promote for as excessive as 500k for a 45-minute journey when the mentioned taxes didn’t enhance?” he requested.

He concluded by emphasising that the December surge in fares is pushed by market forces.

“So far as I’m involved, the astronomical airfares in December are restricted to sure locations due to excessive demand. It’s by no means simply the airfares—it’s bus fares, Airbnb charges, the value of meals. It’s market forces. It’s Nigerians on Nigerians. This isn’t authorities.”



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ByTerfa Ukende
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Terfa Ukende is a seasoned financial writer with over seven years of experience covering topics on finance, investment, and economic development. He began his writing career with NewsWay before joining Watch Nigeria, where he continues to educate readers on wealth building, market trends, and smart money management. He holds a Bachelor’s degree in Statistics and Computer Science, which strengthens his analytical approach to financial reporting and investment insights.
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