By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Economic Issues
  • Home
  • Economy
  • Appointments
  • Business
  • Global Economy
  • Industry Analysis
  • Market Updates
  • Personal Finance
  • Contact
Reading: Nigeria’s Aviation Fare Crisis Is Not a Tax Story—and Pretending Otherwise Is Dangerous
Share
Notification Show More
Aa
Economic Issues
Aa
  • Economy
  • Business
  • Home
  • Economy
  • Appointments
  • Business
  • Global Economy
  • Industry Analysis
  • Market Updates
  • Personal Finance
  • Contact
Have an existing account? Sign In
Follow US
  • Advertise
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Economic Issues > Blog > Uncategorized > Nigeria’s Aviation Fare Crisis Is Not a Tax Story—and Pretending Otherwise Is Dangerous
Uncategorized

Nigeria’s Aviation Fare Crisis Is Not a Tax Story—and Pretending Otherwise Is Dangerous

Reporter
By Reporter December 29, 2025
Share
SHARE

Nigeria’s Aviation Fare Crisis Is Not a Tax Story—and Pretending Otherwise Is Dangerous

By Bukar Mohammed, Kano

- Advertisement -
Ad image

 

There is a familiar rhythm to Nigeria’s public debates whenever prices rise: find a villain, shout “taxes,” and hope the noise drowns out the facts. That script is being replayed yet again—this time by the Chairman of Air Peace, Mr. Allen Onyema—who has warned that domestic airfares could climb to ₦1 million if new tax laws are implemented.

 

It is a frightening claim. It is also reckless, misleading, and—at this point—predictable.

 

Nigerians are struggling. Families plan journeys months ahead, students skip trips home, and businesses cut travel entirely. To exploit that anxiety with exaggerated forecasts is not advocacy; it is alarmism. And it deserves to be called out plainly.

 

- Advertisement -
Ad image

The Truth Nigerians Are Not Being Told

Here is the uncomfortable truth, Mr. Onyema keeps skating around: Nigeria already removed taxes on air tickets—and fares exploded anyway.

 

Under the Finance Act 2019, effective 1st February 2020, the Federal Government: Removed VAT on domestic and international air tickets; Removed VAT and customs duties on imported aircraft, spare parts, and engines. This was real relief. It costs government revenue. It was meant to help airlines and passengers alike. At the time, Lagos–Abuja tickets averaged ₦50,000–₦60,000.

 

Today—years after those concessions—those same tickets routinely sell for ₦300,000 to ₦500,000, sometimes more. Taxes did not go up. They went down. Airfares did the opposite.

 

That single fact shatters the claim that taxation is the villain. Any narrative that ignores it is not honest—it is manipulative.

 

Let Us Stop Insulting the Intelligence of Nigerians

Nigerians understand hardship. What they reject is being misled. Airfares are rising because: The naira has weakened against the dollar; Aviation fuel prices are volatile;

Aircraft are leased and maintained offshore; Banks lend at crushing interest rates; Capacity is limited, and routes are concentrated.

 

None of these problems are created by the Federal Inland Revenue Service. None is fixed by shouting “VAT.” FIRS does not set ticket prices. FIRS does not buy aircraft. FIRS does not sell Jet A1.

 

Yet, it is repeatedly dragged into the dock—accused, tried, and convicted in the court of public opinion—by the same voices who refuse to explain their own pricing decisions.

 

Selective Morality and Convenient Standards

Mr. Onyema invokes the International Civil Aviation Organisation (ICAO) when it suits him, quoting “cost recovery” as though it was a ban on regulation or statutory charges. It is not.

 

Every serious aviation market pays for safety oversight, air navigation, and regulation. Nigeria is not unique. What is unique is the attempt to present standard charges as persecution while remaining silent on profit structures, route dominance, and capacity control. This selective morality is not leadership. It is deflection.

 

A Pattern That Can No Longer Be Ignored

This is not a one-off comment made in frustration. It is part of a pattern: whenever fares rise, taxes are blamed. Whenever taxes are removed, fares still rise—and the silence is deafening. That pattern is now being closely watched.

 

Nigerians should ask a simple question: If taxes were removed and prices still quadrupled, why should we believe that taxes are the problem today?

 

Transparency Must Be for Everyone

Public criticism of tax policy is legitimate. But it comes with responsibility. Those who repeatedly attack Nigeria’s tax system and its institutions should not be treated as untouchable moral referees. Under the Freedom of Information Act, Nigerians have the right to transparency on matters of public interest.

 

In that spirit, and strictly within the bounds of the law, there is a strong public case for the Federal Inland Revenue Service to clarify the tax compliance status of major corporate entities whose owners dominate the public space with anti-tax rhetoric. This is not persecution. It is accountability. If taxation is the problem, then compliance should not be a secret.

 

Why This Matters

Nigeria is trying—imperfectly but necessarily—to reform its economy. Revenue is tight. Social needs are expanding. Institutions are under strain. When influential business figures choose fear over facts, they do real damage. They erode trust in public institutions. They poison policy debate. They inflame public anger without offering solutions. Aviation is too important to Nigeria’s unity and economy to be reduced to scare tactics and sound bites.

 

The Bottom Line Nigerians Deserve to Hear

Airfares in Nigeria did not rise because of VAT. They rose after VAT was removed. Until those who dominate this debate confront that reality honestly, warnings of ₦1 million tickets will remain what they are: headline-grabbing exaggerations that collapse under basic scrutiny.

 

Nigerians deserve truth.

They deserve transparency. And they deserve better than being frightened into silence by those who refuse to answer the hard questions themselves.

 

Bukar Mohammed, a public analyst and commentator, is based in Kano

You Might Also Like

Dangote Cement Unveils Multi-Million-Naira Social Interventions in Gboko Communities 

Dangote Cement Triples Bursary for Benue Host Communities 

Lagos Archbishop Issues Urgent Call for National Renewal Amid Security Crisis 

Aviation Sector: FG Unveils Six Tax Relief Measures to Prevent Ticket Price Hikes

NIRSAL Unlocked ₦100bn for Agribusiness in 2025

Reporter December 29, 2025 December 29, 2025
Share this Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Tumblr Reddit Telegram Email Copy Link Print
Previous Article NIRSAL Unlocked ₦100bn for Agribusiness in 2025
Next Article Aviation Sector: FG Unveils Six Tax Relief Measures to Prevent Ticket Price Hikes
about us

Unraveling the Threads of Global Economy: Your Source for Insightful Analysis and News on Economic Issues.

Find Us on Socials

© Foxiz News Network. Ruby Design Company. All Rights Reserved.

Office of the Accountant General of the Federation (March Disbursement)

Click Here

Welcome Back!

Sign in to your account

Lost your password?