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NANTA seeks audit as domestic airfares hit record highs

Domestic airfares increased by 95% in 12 months – NBS

As domestic airfares climb to unprecedented levels during the festive season, the President of the National Association of Nigeria Travel Agencies, Yinka Folami, has called for an urgent and professional audit of airline ticket pricing to protect Nigerian travellers from arbitrary costs.

Folami made the call while speaking on Mainland FM, where he addressed widespread claims that as many as 18 government taxes are responsible for the sharp increase in domestic airfares. While acknowledging the challenging operating environment facing local airlines, he urged industry stakeholders to move away from what he described as personality-driven arguments and instead focus on technical clarity and transparency.

According to him, the debate surrounding domestic airfare pricing must be anchored on facts rather than speculation, especially as public frustration continues to grow over what many perceive as unjustified fare increases.

Folami explained that a major contributor to the rising cost of tickets is the YQ and YR charges, which are industry codes for carrier-imposed surcharges. He clarified that these charges are not government taxes but fees added by airlines to the base fare to account for fuel costs, security expenses, insurance and other rising operational obligations.

He noted that YQ and YR surcharges often make up a significant portion of ticket prices, particularly on award tickets, where the charges are passed directly to passengers.

Folami further explained that while these codes allow airlines to adjust pricing dynamically, the exact breakdown of what the charges cover is often not disclosed to the public, raising concerns about transparency and fairness.

To illustrate his concerns, the NANTA President provided a breakdown of a typical domestic ticket costing ₦360,000.

According to the breakdown, the total fare stood at ₦360,000, with airport tax accounting for ₦9,000, government sales tax amounting to ₦16,700, the basic airline fare set at ₦46,300, and the YQ and YR surcharge reaching as high as ₦288,000.

He stated that such a pricing structure raises legitimate questions around arbitrariness and transparency, especially considering that YQ and YR charges were originally introduced as emergency-related measures.

Folami noted that government taxes, identified by the NG code, and airport charges, identified by the QT code, remain relatively low and stable throughout the year. In contrast, YQ and YR surcharges, which are often designated for fuel or security emergencies, frequently account for as much as 80 percent of the total ticket fare.

“Government taxes do not change between June and December,” Folami explained.

“Yet fares rise significantly during peak seasons such as December.

For example, routes that cost between ₦145,000–₦155,000 mid-year for a one-way ticket often rise to ₦250,000–₦350,000 in December.

These same fares (for one-way tickets) typically drop again to ₦125,000–₦145,000 by January or February,” he explained.

Based on this pattern, Folami concluded that seasonal increases in domestic airfares are driven largely by market forces and operational factors such as demand cycles, capacity constraints and load management, rather than changes in government taxes.

Speaking on behalf of NANTA, which represents the downstream segment of the aviation industry and has over 50 years of experience, Folami said the widely circulated claim of 18 different taxes on airline tickets is unfamiliar to industry practitioners.

As a result, he recommended a methodical audit of airline ticket pricing, calling for a transparent breakdown of every component of domestic airfares by the National Assembly and other relevant authorities.

He also stressed the need for consumer protection, noting that while local airlines deserve support to remain viable, there must be a balance to ensure that passengers are not unfairly burdened by opaque pricing practices.

Folami further called for an end to speculation around airfare pricing, urging authorities to provide clear and factual information to calm public anger over what many perceive as arbitrary fare increases.

“Aviation is a lifeline for national connectivity,” Folami concluded. “We must build an equity-driven ecosystem that is both sustainable for airlines and sensitive to the consumer.”