Reported By Mary Udezue | Edited by: Gabriel Osa
Nigeria’s domestic aviation sector has become the focal point of fresh debate as Allen Onyema, Chairman and Chief Executive Officer of Air Peace, stated that Nigerians are currently paying the cheapest domestic airfares in the world — a claim that highlights both competitive pricing and the deep challenges facing the industry. Onyema’s remarks, delivered in a recent interview, came amid public concern over soaring ticket prices during the festive travel season.
Speaking on Arise News, Onyema directly compared Nigerian flight costs to international standards, noting that a short domestic flight in countries such as the United States — for example, a route between Atlanta and Charleston — can fetch fares of around $399 (over ₦600,000–₦800,000) for a one-hour journey. By contrast, he argued, Nigerian passengers can still secure one-way tickets for around ₦115,000 to ₦125,000 (under $60) on certain domestic routes. Based on these figures, he asserted that Nigeria offers some of the lowest airfares worldwide for domestic travel.
Onyema’s comments come as airlines in Nigeria face intense scrutiny over pricing practices. While travellers have reported increases in ticket costs — particularly during peak periods like the Christmas and New Year holiday travel rush — the Air Peace boss maintained that cheap fares still exist within inventory systems and that comparisons with global markets support his claim of affordability. He emphasised that even within the same flight, passengers might pay widely varying rates, with some securing low-cost fares while others pay higher prices due to demand patterns and advance booking differences.
However, the CEO also used the interview to highlight what he described as extraordinary financial pressures bearing down on the domestic aviation industry. Beyond mere pricing comparisons, Onyema criticised the high tax and levy environment in which Nigerian airlines operate, suggesting that excessive multiple taxation significantly erodes their revenue and threatens long-term sustainability. Using the example of a hypothetical ₦350,000 ticket, he explained that airlines might retain only about ₦81,000 after statutory charges—including a five percent fee imposed by the Nigerian Civil Aviation Authority (NCAA) and other levies—are deducted. He argued that these burdens ultimately restrict industry growth and limit the capacity of carriers to maintain affordable services.
The industry’s vulnerability to fiscal pressures was underlined by Onyema’s warning that newly introduced tax laws could dramatically increase airfares, potentially pushing standard domestic ticket prices beyond ₦1 million if certain policies remain unaddressed, a change he said would risk destabilising airlines and the wider economy. He suggested that unless urgent regulatory reforms are implemented, carriers may struggle to operate profitably, with negative consequences for passengers and aviation sector stakeholders alike.
These statements arrive amid broader public debate on airline pricing that has drawn attention from regulators and consumer protection advocates. Allegations and investigations concerning pricing practices in Nigeria’s aviation market have been ongoing, with some critics claiming that fare levels do not always reflect operational costs and that disparities across routes and carriers create confusion for passengers. Regulatory bodies such as the Federal Competition and Consumer Protection Commission (FCCPC) have in the past reviewed airline pricing to guard against unfair practices, highlighting the complex intersection of market forces, consumer rights, and industry sustainability.
Industry analysts note that Nigeria’s aviation landscape is shaped by multiple cost drivers that distinguish it from markets in Europe or North America. Unlike those regions, Nigerian airlines often incur higher financing charges, face limited domestic maintenance infrastructure, and absorb additional costs related to ferrying aircraft and spares, all of which contribute to the underlying cost environment in which airlines operate. These factors, Onyema argues, amplify the challenge of offering both affordable fares and sustained service amid competitive pressures.
The broader context includes fluctuations in average airfares within Nigeria itself, with official statistics showing that air travel costs have previously risen due to economic and operational factors such as fuel prices, exchange rate volatility, and heightened demand during peak seasons. While these figures underscore the upward trends in travel expenses, Onyema’s argument centres on the relative cost of travel compared with international benchmarks, suggesting that domestic passengers still enjoy comparatively low base fares.
For many travellers, particularly those flying during the holiday season, the practical experience can be more nuanced. Fares can vary substantially based on booking timing, route popularity, and airline capacity, meaning that the lowest advertised fares may not always be readily available or may require advance purchase. Nonetheless, Onyema’s assertions point to enduring capacity within Nigerian carriers to offer competitively priced tickets even amid structural constraints.
Beyond pricing debates, Nigeria’s aviation sector continues to navigate operational challenges related to infrastructure, regulatory frameworks, and safety considerations. Issues such as unexpected weather events, bird strikes, or logistical disruptions have all periodically affected airline operations, adding layers of complexity for carriers attempting to balance cost-efficiency with reliability.
The coming months will likely see continued discussion among policymakers, industry leaders, and consumer advocates about the future of domestic aviation pricing in Nigeria. With air travel demand remaining high and economic pressures shifting both globally and locally, stakeholders will be watching for policy decisions that could either sustain lower fare levels or trigger cost adjustments with far-reaching effects for travellers and airlines alike.
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