Air Peace CEO Warns New Tax Law Could Push Nigerian Domestic Flight Fares to ₦1 Million

Air Peace CEO Allen Onyema has raised alarms over Nigeria’s new tax provisions, warning they could push domestic flight fares beyond ₦1 million and threaten airline operations. Speaking on ARISE NEWS, Onyema explained that cumulative levies—including VAT on aircraft and spare parts, and NCAA charges—are straining airlines’ finances, with only a fraction of ticket revenue reaching operators. He called for urgent government intervention to prevent sector collapse, stressing that implementing the new tax framework could force airlines to pass high costs to passengers, potentially crippling Nigeria’s aviation industry and impacting the wider economy.

Air Peace Chairman Defends Christmas Airfares, Says Nigerian Airlines Unfairly Demonised Over Southeast Flight Costs

The Chairman of Air Peace, Allen Onyema, has rejected claims that Nigerian airlines exploited passengers with high airfares during the Christmas season, insisting that entry fares still start from ₦150,000. Speaking amid public outrage and regulatory scrutiny, Onyema said airlines are being unfairly accused of price fixing, especially on Southeast routes where return flights are often nearly empty. He explained that high operational costs, wet-lease charges, taxes, and demand-driven pricing account for fare differences, stressing that most of the ticket revenue does not go directly to airlines. Onyema urged government agencies and the public to stop scapegoating airlines, describing the criticism as unfair and damaging to the aviation sector.

Nigerians Pay the Cheapest Domestic Air Fares Globally – Air Peace CEO, Onyema

Chairman and Chief Executive Officer of Air Peace, Allen Onyema, has said that domestic air travellers in Nigeria are paying the cheapest air fares in the world.

Onyema made the assertion on Sunday during an interview on Arise Television, monitored by DAILY POST, while responding to widespread complaints over the rising cost of air travel in the country.

According to him, despite public perception, local flight tickets in Nigeria remain significantly cheaper when compared to fares in other parts of the world.

“Nigerians are paying the cheapest domestic air fares in the world,” Onyema said.

He explained that passengers abroad pay far more for similar travel durations, adding, “A one-hour flight costs over $400 abroad, but in Nigeria, we still have tickets for N125,000, which is less than $60.”

The Air Peace boss attributed the frequent collapse of airlines in the country to the inability of operators to cover costs under the current fare structure.

“This is why the mortality rate of airlines in Nigeria is very high; over 80 airlines have come and gone. They should allow airlines to breathe,” he said.

Air Peace CEO Warns New 2026 Tax Law Will Cripple Nigerian Airline

Air Peace Chairman and AON leader, Allen Onyema, has warned that the proposed tax law scheduled to take effect on January 1, 2026, will devastate Nigeria’s aviation industry if implemented. Speaking at the 100 years of Aviation celebration in Abuja, Onyema said the sector—already struggling—would “crumble” under the new tax regime and urged the National Assembly and President Tinubu to intervene.
He praised the current administration’s support for the aviation sector but stressed that multiple taxes remain a major burden on airlines. Aviation Minister Festus Keyamo also honoured industry veterans at the event, acknowledging past contributions and pledging continued reforms.