The Truth Behind Soaring Air Tickets: Full List of Taxes, Charges Nigerians Are Paying for To Travel
- A new report has revealed that the federal government imposes more than 54 taxes and charges on air travel
- These charges account for about 35% of airfare costs, with only six charges appearing on tickets
- Some of the charges include new security levies, such as a $20 security charge and an $11.50 APIS fee, which are among the costs pushing airfares
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigerians planning to travel by air, locally or internationally, during the holiday season are facing the challenge of high airfares, sparking intense debate among lawmakers at the National Assembly.
A local flight can now cost as much as N500,000 for a one-way trip, raising concerns that prices could increase further.
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Keyemo says government helpless
Festus Keyemo, the Minister of Aviation and Aerospace Development, has come out to explain that the Federal Government has no legal powers to regulate or fix airfares in the country, insisting that Nigeria’s aviation sector has been fully deregulated for decades, Punch reports.
Speaking to State House correspondents after the Federal Executive Council (FEC) meeting at the Presidential Villa, Keyamo explained that the deregulation of the industry dates back to the administration of former military leader Ibrahim Babangida, when private airlines were first allowed to operate freely, including setting their own ticket prices.
He said the Senate had summoned him over rising airfares, but he was unable to attend because of his presentations at FEC.
The minister, however, disclosed that he instructed the Nigerian Civil Aviation Authority (NCAA) and domestic airlines to appear before the Senate Committee in his absence.
Keyamo stressed that while the government cannot dictate prices in a free market, it remains actively engaged with airlines to address the underlying factors driving high fares
Why airfares is on the rise
While the minister insists that the government hands are tight in the pricing of airline tickets, new report has revealed that government agencies in Nigeria are contributing to some of the highest airfares in the world, with the levies accounting for an estimated 35% of total ticket costs for domestic and international flights.
The Guardian Nigeria reported that these government levies, spread across multiple regulators and service providers, have substantially inflated the price of flying and dampened passenger demand.
Although only six of these charges which are part of a single ticket are visible to passengers at the point of sale, the remaining 48 are embedded in airfares and borne indirectly by travellers through higher ticket prices.
Some of the charges extracted from the report include:
- Passenger Service Charge (PSC) – N2,000 (domestic), $150 (international)
- Common User Terminal Equipment (CUTE) fee – $1.40 per passenger
- Passenger Terminal Facility Charge (FAAN)
- Ticket Sales Charge (TSC) – 5%
- Excess Baggage Charge (EBC) – 5%
- Security Levy – $20
- New: Advance Passenger Information System (APIS) Levy – $11.5
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The above charges are built in passengers ticket.
- Federal airports authority of Nigeria (FAAN) – about 18 charges
- Electricity and counter usage charges — $7 per hour
- Boarding bridge fee – $250 per use
- Rent (office space per m²): • Abuja – N75,000 • Lagos – N50,000 • Port Harcourt – N55,000
- Service Recovery Charge – 20%
- Common User Terminal Equipment (CUTE) – $1.40 per passenger
- Passenger Service Charge – already listed above
- Apron pass fee per vehicle (yearly): • Abuja – N250,000 • Lagos – N150,000 • Port Harcourt – N125,000
- Company registration fee (On-Duty Card) – N500,000 yearly
- Staff ODC fee – N25,000 per staff/year
- Extension charge – N100,000
- Air Cargo Charge (ACC) – N5 per kg
- Cargo registration fee – N250,000
- Non-refundable processing fee – N50,000
- Port charge – N7 per kg
Nigeria Civil Aviation Authority (NCAA) charges
- Medical certification issue/renewal – N5,000 per crew
- Cabin crew licence issue/reissue – N7,500
- Aircraft type inclusion on crew licence – N5,000 per type
United Nigeria Airlines CEO speaks
Obiorah Okonkwo, executive chairman of United Nigeria Airlines, has called on the national assembly to reduce the multiple taxation plaguing domestic airlines.
He said:
“We are taxed about 18 taxes on one single ticket. So any ticket you buy, maybe 70% of them goes to other government agencies.
"If the national assembly will help us reduce these things, which are legislative in nature, we will be able to reduce also the cost of ticket so that it should be affordable to all.”
Another airport opens for operation in Nigeria after 6-year wait
Earlier, Legit.ng reported that Ekiti International Airport has officially commenced operations, with United Nigeria Airlines inaugurating direct flights to the new facility.
The first flight carried several dignitaries from Abuja, including former governors, lawmakers, and senior aviation officials.
Biodun Oyebanji, Ekiti state governor said that previous administrations had committed N14 billion to the airport project, while his administration had spent over N34 billion in the last three years to make the facility fully operational.
Source: Legit.ng
