Nigeria Aviation Tax

Nigeria Aviation Tax Law: NCAA Clarifies Airfare Tax Misunderstandings Amid Escalating Ticket Costs

‎‎Understanding Nigeria Aviation Tax Law and Airfare Charges

‎‎Recently, the Nigerian aviation tax law has sparked significant public discussion following grievances about soaring domestic airfare prices. The Nigerian Civil Aviation Authority (NCAA) has categorically rejected the notion that high government taxes are the primary cause behind the recent rise in flight ticket costs nationwide.

‎‎The NCAA asserts that domestic airlines in Nigeria are not subjected to multiple aviation taxes as commonly believed, and that fare increases are mostly influenced by market dynamics such as supply and demand, particularly during busy travel seasons like December.

‎‎NCAA Addresses Claims of Excessive Aviation Taxes

In response to accusations from airline representatives, especially comments made by Air Peace CEO Allen Onyema, the NCAA clarified that no domestic airline is burdened with as many as 18 aviation taxes, opposing the prevalent public assumption.

‎‎Michael Achimugu, the NCAA’s Director of Public Affairs and Consumer Protection, labeled these claims as misleading, stating:

‎‎"Any domestic carrier claiming they are paying 18 taxes for domestic flights is being dishonest. No domestic carrier pays 18 taxes for such flights."

‎‎This statement directly tackles the rising public anxiety surrounding the Nigeria aviation tax law and its perceived effects on airfare pricing.

‎‎The Actual Scope of the Nigeria Aviation Tax Law

‎‎According to Nigeria’s aviation regulatory framework:

‎• ‎Airlines are subjected to standard statutory charges, rather than exorbitant or newly instituted taxes.

• ‎There have been no recent hikes in aviation taxes or jet fuel prices.

‎• ‎The NCAA does not set airfare rates, allowing market competition to dictate pricing.

‎‎Following consultations with domestic airlines, the NCAA confirmed that carriers acknowledged they do not incur the number of taxes alleged in public discourse.

‎‎Reasons for Elevated Airfares Despite Stable Taxes

‎‎Even with stable aviation tax regulations, domestic airfare prices spiked in December 2025, with reports of some tickets costing between ₦350,000 and ₦500,000 for short distances.

‎‎The NCAA attributes this surge to:

‎• ‎High passenger demand during festive periods.

‎• ‎A shortage of available aircraft.

‎• ‎An increase in travel on particular routes.

• ‎General inflation affecting transportation, lodging, and food.

‎Achimugu questioned the narrative surrounding taxes, asking how fares could rise sharply without any increase in taxes or fuel, noting that similar seasonal price hikes are observed in road transportation and short-term accommodations.

‎‎Air Peace CEO’s Perspective on Aviation Charges

‎‎Air Peace CEO Allen Onyema contended that airlines receive only a small portion of ticket income, with 65-70% going toward levies, taxes, and fees. He also pointed out that airlines frequently operate return flights nearly empty, particularly on South-East routes, incurring all operational expenses.

‎However, the NCAA maintains that while airlines do face operational hurdles, government taxation is not the root cause of the recent fare increases.

‎‎NCAA’s Final Stance on the Nigeria Aviation Tax Law

‎‎The NCAA affirmed that:

‎• ‎There have been no recent alterations to the Nigeria aviation tax law.

‎• ‎High airfares are influenced by seasonal demand.

‎• ‎Government support for local airlines remains strong.

‎• ‎Blaming aviation taxes is both inaccurate and unfair.

‎‎"This is not a government issue. It’s market dynamics. It’s Nigerians impacting Nigerians," Achimugu stated.

‎‎Conclusion

‎‎The ongoing discussion regarding the Nigeria aviation tax law underscores the necessity for increased transparency within the aviation industry. While ticket prices continue to be high, official reports affirm that taxes are not the main contributing factor. Instead, seasonal demands, operational expenses, and limited availability persist in influencing ticket pricing in Nigeria’s domestic aviation sector.

‎‎As travel demand normalizes after the festive season, airfares are anticipated to adjust accordingly.