Allen Onyema, chief executive officer of Air Peace, says Nigerian passengers currently enjoy some of the cheapest domestic airfares in the world, despite the high operating costs faced by local airlines.
Speaking during a television interview on Sunday, Onyema compared airfares in Nigeria with those in the United States, noting that a one-hour domestic flight such as Atlanta to Charleston can cost over $400.
According to him, a $399 one-way ticket in the U.S., when converted at about ₦1,500 to the dollar, amounts to over ₦600,000, while fares in Nigeria for similar routes can be as low as ₦115,000 to ₦125,000—less than $60.
Onyema explained that Nigerian airlines operate under far more difficult conditions, citing expensive aircraft financing, the absence of nearby maintenance facilities, and the high cost of ferrying aircraft and engines overseas for repairs, all of which are dollar-denominated.
He also lamented what he described as excessive taxation and multiple charges imposed on airlines, saying they significantly reduce revenue and stifle growth in the sector. Onyema disclosed that from a ₦350,000 ticket, airlines may retain only about ₦81,000 after deductions.
The Air Peace CEO singled out the Nigerian Civil Aviation Authority’s (NCAA) 5 percent charge on ticket sales, arguing that if the levy is truly meant for passengers, it should be collected directly from them at the airport rather than deducted from airline revenues.
He stressed that aviation regulators should focus on cost recovery for services rendered, in line with International Civil Aviation Organization (ICAO) guidelines, rather than using the sector as a revenue source for government.
According to Onyema, the burden of multiple taxes and charges is limiting the growth and sustainability of Nigerian airlines.