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.

Passengers can now fly for from the listed states to Lagos and then connect flights to London through Air Peace with their luggage arriving at Gatwick airport.

An X user Kalu Aja @FinPlanKaluAja1 had admonished the airline to open up its local routes to international flights.

Was Air Peace assuming they would let him gain market share without a fight?

Oga Allen, they will fight for every seat, It is called competition and it's not all fair

They have their advantage, they can use their currency to pay for maintenance and insurance, Air Peace has to…

— Kalu Aja (@FinPlanKaluAja1) April 11, 2024

Few days later, the airline introduced the service via its X handle stating, “Embark on your London adventure from Abuja, Asaba, Benin, Enugu, Owerri, Warri, or Port Harcourt! Seamless connections via Lagos. Make your journey smooth and convenient.”

Nigerians have expressed excitement following the development, stating that Air Peace would have an advantage over other carriers on the route if the service is seamless.

DOK – Ayanfe with X handle @PrinceofSydney stated: “Air Peace has woken up; this is how to maximise that Lagos to London route”.

Another X handler user with name Victor @VC_Ekezie, wrote: “Thank you air peace for heeding to good counsel…”

This also gladdens the heart of PIED @obehieguakhide who wrote: “Brilliant move! Keep this up. There are those of us rooting for you all to succeed!”

Another X User @hackSultan commented: “”This is great.  Instead of flying to Abuja or Lagos first before going to London, all the locations on air piece (sic: Air Peace) can route individuals directly to London via their Lagos terminal”.

Barely two weeks after Air Peace commenced Lagos-London route, all foreign carriers reduced fares on the route by over 50 percent.

Airlines such as British Airways (BA), Virgin Atlantic, Qatar Airways, Ethiopian Airlines and others have continued to slash fares on the route as competition is seen to drive price war.

Air Peace had pegged its return economy class ticket at N1.2million, and N4 million for Business Class, thereby slashing fares on the route.

Before the local airline’s maiden flight to London, BA and Virgin which operates direct flight from London to Lagos charged between N3 million to N3.5 million. Other airlines cost an average of N2 million for a return ticket.

Currently on the Lagos-London route, an economy class ticket on Egyptair cost ₦585,620; Air Peace – ₦816,130, British Airways – ₦981,848, ⁠Virgin Atlantic – ₦1.1m, Royal Air Maroc – ₦569,422, ⁠RwandAir – ₦679,070, ⁠Ethiopian Airlines – ₦677,824, Turkish Airlines – ₦807,408 Air France – ₦1.1m and KLM – ₦1.1m.