High Airfares Not Caused by Taxes, NCAA Insists

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The Nigerian Civil Aviation Authority (NCAA) has dismissed claims that high taxes are responsible for the rising cost of domestic air tickets in Nigeria. The aviation regulator said airlines have been misleading the public by blaming government charges for the sharp increase in airfares, especially during peak travel periods.

The NCAA made this position known following repeated public complaints about expensive flight tickets and statements by some airlines claiming that they pay as many as 18 different taxes, which they say force them to raise fares.

According to the Authority, these claims are false and do not reflect the actual situation in the aviation sector.

Speaking on the issue, the NCAA explained that although it does not regulate airfares directly, it has taken steps to verify the claims made by domestic airlines. The regulator said it invited all domestic airlines operating in Nigeria for discussions to clarify the issue of taxes and charges.

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“I have invited all the domestic airlines, without exception, and asked them about these taxes they keep talking about on television,” the NCAA said. “They all admitted that they do not pay the volume of taxes being mentioned in public.”

The Authority said it does not understand the popular figures being quoted by some operators, such as claims of N350,000 or N81,000 being paid as taxes per ticket. According to the NCAA, these figures do not match the reality of what airlines actually pay.

The aviation regulator expressed concern that despite the strong support given to domestic airlines by the Federal Government, the industry continues to blame government policies for high ticket prices.

“For the kind of support that President Bola Ahmed Tinubu, the Minister of Aviation and Aerospace Development, Festus Keyamo, and the Director-General of Civil Aviation, Capt. Chris Najomo, have given to domestic carriers, there is no reason for government to be blamed this way,” the Authority said.

The NCAA also pointed out what it described as contradictions in the arguments put forward by airlines. On one hand, some operators claim that Nigerians pay the lowest domestic airfares in the world. On the other hand, they use the same argument of high taxes to justify the very high ticket prices seen in recent months.

This issue became more serious in December, when many Nigerians paid between N150,000 and N200,000 for short domestic flights. In some cases, passengers reportedly paid as much as N500,000 for a flight lasting less than one hour.

The NCAA questioned how such prices could be justified when there was no increase in taxes or aviation charges during that period.

“If high taxes were the reason airfares rose to N150,000 or N200,000, why did tickets sell for as high as N500,000 for a 45-minute trip when taxes did not increase?” the Authority asked.

The regulator also said that the cost of jet fuel, which is often cited as a major reason for high fares, did not rise sharply during the period when ticket prices peaked in December.

In recent years, Nigerian airlines have struggled with high operating costs, including fuel prices, aircraft maintenance, foreign exchange challenges, and limited access to aircraft. These problems have often led to flight delays, cancellations, and increased ticket prices.

However, the NCAA said some of these challenges are now being addressed by the current administration. One major development is the approval for domestic airlines to access dry lease aircraft.

Dry leasing allows airlines to rent aircraft without crew, fuel, or maintenance included. This option is usually cheaper and gives airlines more flexibility. According to the NCAA, Nigerian airlines have not had easy access to dry lease aircraft for decades.

“And this is happening at a time when Festus Keyamo has ensured that domestic carriers now have access to dry lease aircraft,” the Authority said. “This is something they have not had in many years.”

The NCAA said this policy is expected to reduce costs for airlines and improve their operations, making it difficult to justify continued high airfares.

The Authority also said it consulted widely before reaching its conclusion. It spoke with airline staff, travel agents, and relevant departments within the NCAA.

“Not a single airline staff I spoke with two weeks ago agreed with the excuses I am reading on social and traditional media,” the regulator said.

Following questions from journalists about claims by a particular airline that it pays 18 taxes to the NCAA, the Authority said it called a meeting with domestic operators. The meeting also covered issues of flight disruptions and customer service.

According to the NCAA, there was clear agreement during the meeting that no domestic airline pays 18 different taxes.

“One thing we all agreed on was that no domestic operator pays 18 taxes,” the NCAA said. “Therefore, this cannot be the reason for the hike in airfares. That narrative needs to end.”

The Authority explained that airlines pay statutory charges that are clearly defined and regulated. These include fees for passenger service, landing, parking, and security. The NCAA said these charges have not increased recently and are not enough to justify the extreme rise in ticket prices.

The meeting also addressed complaints from passengers about poor communication during flight delays and cancellations. The NCAA said airlines made commitments to improve how they inform passengers during disruptions.

Operators also agreed to comply with Part 19 of the NCAA Regulations 2023, which focuses on consumer protection. The regulation requires airlines to be transparent, treat passengers fairly, and provide timely information when flights are delayed or cancelled.

The NCAA said it will continue to engage with airlines and other stakeholders to improve the aviation sector. It also warned that airlines must stop spreading what it described as false information about taxes.

For many Nigerians, air travel has become increasingly unaffordable, pushing some passengers back to road transport despite safety concerns. The debate over high airfares has therefore become a major public issue.

While the NCAA maintains that taxes are not the cause, industry observers say airlines still face real challenges, including foreign exchange pressure and maintenance costs. However, they agree that clearer communication and honest pricing are needed to restore public trust.

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