The Digest:
Air Peace CEO Allen Onyema has stated that Nigerians pay the cheapest domestic airfares in the world, with tickets as low as ₦115,000, equivalent to less than $60, compared to similar flights abroad that cost hundreds of dollars. However, he revealed that airlines retain only about ₦81,000 from a ₦350,000 ticket after multiple taxes and charges, leaving operators struggling under heavy financial burdens.
Key Points:
- Onyema compared Nigerian fares to U.S. flights, where one-hour trips can cost over $400 (≈₦600,000)
- Nigerian airlines keep only ₦81,000 from a ₦350,000 ticket due to taxes and levies
- He criticized the NCAA’s mandatory 5% ticket charge as reducing passenger demand
- Onyema urged the NCAA to collect charges directly from passengers at airports
- He cited ICAO guidelines that recommend cost recovery, not revenue generation, for aviation agencies
- High financing costs and distant maintenance facilities raise operational expenses
- Airlines struggle to grow under the weight of overlapping charges and taxes
Sources: Arise News Interview
