The Nigerian Civil Aviation Authority (NCAA) has launched a stinging rebuttal against claims made by Allen Onyema, Air Peace chairman and CEO, regarding the cause of skyrocketing domestic airfares.
In a move that signals a deepening rift between the regulator and the airline chief, the NCAA formally dismissed allegations that domestic carriers are burdened by “18 different taxes,” describing such assertions as a “lie.”
The ‘18 Taxes’ Controversy
The conflict erupted following an interview where Allen Onyema attributed high ticket prices, which have seen some 45-minute domestic flights climb to ₦500,000 this December, to an oppressive tax regime.
Onyema claimed that nearly 70% of ticket revenue is siphoned off by various government levies and charges, leaving airlines as the “sacrificial lamb.”
Responding via a statement on Sunday, Michael Achimugu, the NCAA’s director of Public Affairs and Consumer Protection, challenged the Air Peace boss to provide evidence for the figures.
“Any domestic carrier operating domestic flights that says they are paying 18 taxes is a liar,” Achimugu stated. “We have invited domestic airlines to clarify the matter, and they all admitted to not paying the volume of taxes being bandied around.”
Market Forces vs. Government Levies
The NCAA maintains that while airfares are high, the surge is driven purely by market forces of demand and supply typical of the Yuletide season, rather than any new fiscal policy.
Achimugu questioned the logic of the airline’s defense, noting that if taxes were the primary driver of the ₦150,000–₦200,000 base fares, they could not explain why prices jumped to ₦500,000 in December when no tax hikes occurred.
“It is Nigerians on Nigerians. This is not government,” the NCAA official remarked, dismissing the narrative that the Tinubu administration is “throwing domestic carriers under the bus.”
Key Points of Contention:
- The 70% Claim: Air Peace alleges 65–70% of ticket costs go to levies; NCAA insists this is factually incorrect for domestic operations.
- Profitability: Onyema argues South-East routes are often “one-way” traffic in December (full going, empty returning), forcing airlines to double prices to cover costs.
- Global Parity: Onyema claims Nigerian domestic fares are among the lowest globally; the NCAA finds this claim ironic given the current ₦500,000 price point for short-haul flights.
The Economic Impact on 2026
This dispute comes at a sensitive time for the Nigerian economy. With the New Tax Laws set for January 1, 2026, the aviation sector is under pressure to harmonize its costs. Industry analysts suggest that if the NCAA and major carriers like Air Peace cannot agree on a transparent pricing framework, the high cost of travel could dampen the “economic revitalisation” goals set by the Presidency for the coming year.
As of Monday morning, December 29, 2025, Air Peace has yet to issue a formal counter-response to the NCAA’s “liar” label, but the exchange has already sparked a heated debate regarding the transparency of “charges and levies” in Nigeria’s aviation value chain.
