Travel agencies under the auspices of the National Association of Nigerian Travel Agencies (NANTA) have challenged claims by airline operators that as many as 18 government taxes are imposed on every domestic air ticket.
NANTA described the claim as “new information” and inconsistent with industry practice and professional ticketing standards.
Speaking with The Guardian yesterday in Lagos, the President of NANTA, Dr Yinka Folami, said while the association supported the sustainability of local airlines, it has a greater responsibility to the Nigerian travelling public to ensure transparency, fairness and customer-focused pricing in the domestic air travel market.
He said that high domestic fares should not be justified with claims that do not align with established fare construction principles.
Folami declared that aviation plays a critical role in national connectivity and economic development, saying that feedback or criticism within the sector must be driven by a sense of ownership, particularly in protecting indigenous airline operators.
Speaking on the rising local airfare, especially during the yuletide period, Folami said NANTA aligned with the position of the Minister of Aviation and Aerospace Development, Festus Keyamo, that Nigeria operates a free aviation market, faces capacity constraints among domestic airlines and the sector is burdened by high aircraft leasing and maintenance costs, largely denominated in foreign currency.
Despite these challenges, the travel agencies insisted that there must be empathy for the travelling public and a balance between airline sustainability and consumer protection.
He said: “We therefore take a well-informed position that it is not entirely correct to place the burden of high domestic airfares on government taxes alone. The assertion that there are 18 government taxes on every Nigerian domestic ticket is new information to our experience spanning 50 years. This assertion is from a respected place and deserves serious appraisal.
“There is a need for deconstruction (breakdown) of the assertion by a highly placed airline operator that there are 18 government taxes on every domestic ticket. The Nigerian National Assembly is asking the right questions and the government should please follow through in the interest of the Nigerian travelling public.
“That construction of airfares are not arbitrary; taxes are not punitive, they address aviation and public concerns and in our professional experience, in domestic ticket sales, we are aware of NG – Nigerian Government (Sales) Tax, QT – Airport Tax, YQ/YR – Emergency Taxes, particularly security emergencies and the Neutral Unit of Construction (NUC), which is airline basic fare that accommodates operations costs and margins.”
Folami, however, raised concern over the alleged arbitrary application of YQ/YR charges (security emergency charge), saying these surcharges now account for as much as 60 per cent of domestic air ticket prices, while the airline basic fare sometimes drops to between 10 and 20 per cent.
He queried if Nigeria’s domestic aviation environment was under a continuous security or emergency to justify such high charges from the airlines, warning that the practice undermined pricing transparency and placed an unfair burden on passengers.
NANTA argued that rather than government taxes, the structure and application of YQ/YR surcharges appeared to be the major contributors to high domestic fares.
It called for the deconstruction of the charges to allow for clearer pricing and better consumer understanding.
Folami also urged the National Assembly, which is currently probing the issue of high airfares, to invite the aviation downstream trade to its public hearings.
According to him, such engagement would provide lawmakers with professional insight into airfare construction and help resolve conflicting claims within the industry.