Onyema cautions that domestic fares could hit N1.7 million if reforms take effect from January 2026
Nigerian domestic airlines could face a major crisis if the government implements the new tax reforms without review, according to Allen Onyema, Chairman and CEO of Air Peace.
Speaking to Arise Television on Sunday, Onyema said that excessive taxes, levies, and charges have already contributed to soaring ticket prices, and the new laws could push fares to as high as ₦1.7 million per route, potentially putting local carriers out of business within months.
“People talk as if airlines are making a killing. It’s not true,” Onyema said, dismissing claims that airlines are profiteering. “Most of what passengers pay goes to statutory deductions.”
He warned that if the 7.5 percent tax on ticket fares is applied, economy-class tickets could spike dramatically, and domestic airlines may collapse within three months. “At the end of the day, economy-class tickets will go for about ₦1.7 million if this tax reform happens,” he stressed.
Onyema’s warning comes amid public outrage over already high domestic airfares, particularly along South-East and South-South routes, which rose to between ₦250,000 and ₦450,000 during the Yuletide. Lawmakers have also voiced concern over the soaring prices.
Despite the pushback, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee has affirmed that the new tax laws will take effect from January 1, 2026, prompting calls from the aviation industry for a review or suspension of the reforms.
