Govt Taxes Responsible For High Airfare, Says Travel Agent

Travel agent and former president of the National Association of Nigerian Travel Agents (NANTA), Bankole Bernard, said the rising cost of flight tickets is fuelled by high taxes on airlines operating in the sector.

LEADERSHIP reports that of the 54 taxes, fees collected from local airlines in Nigeria, six are directly built into every air ticket sold in Nigeria by the airlines.

The charges are passenger service charge (PSC), common user terminal equipment (CUTE) fee, passenger terminal facility charge (FAAN), ticket sales charge (TSC), five per cent of excess baggage charge (EBC) and $20 security levy and the newly introduced $11.5 advance passenger information system (APIS) levy, which took effect on December 1.

The NCAA charges alone add between N18,000 and N25,000 to the cost of a domestic ticket per passenger, while for international flights, all the charges run into about $150 to $180 per passenger, making Nigerian tickets among the most expensive in the world.

However, speaking to journalists over the weekend, Bernard, who is also the group managing director of Finchglow Holdings Ltd, appealed to the federal government to reduce charges and taxes on local airline operators.

According to Bernard, approximately 45 per cent of ticket value goes to taxes and charges imposed by various aviation agencies.

“If a ticket costs N1,000, only about N550 goes to the airline,” he explained, appealing to the government to reduce charges, especially in a country where demand already exceeds supply.

He argued that the International Air Transport Association (IATA), Nigeria remains one of Africa’s highest aviation tax environments, contributing to elevated fares.

Airfares in Nigeria surged by over 50 per cent between 2022 and 2024 due to inflation, FX instability, and high operational charges, which have continued to pressure airlines.

Bernard emphasised that while airlines rely on volume and pricing to remain profitable, government levies often offset gains.

He urged authorities to reduce these charges if Nigerians are to enjoy any relief even as he warned against the growing trend of state-owned airports that generate little revenue but drain national resources.

He advised governments to stop running airports as political projects and instead hand operations to professionals, citing successful private-sector models as proof that aviation thrives when managed as a business.

“With 22 federally owned airports, many of which generate limited revenue, the government relies on user charges to cover operational costs,” he lamented.

He believes cargo operations hold strong potential for growth, especially as more Nigerian airlines join the Cargo Accounts Settlement System (CASS).

“We expect astronomical growth in cargo revenues next year,” he projected, noting that nine airlines are already on the CASS platform.

He stressed the need for accurate, centralised aviation data, referencing past inconsistencies where agencies and airlines provided conflicting passenger figures.

Centralised systems such as the BSP (Billing and Settlement Plan) have already improved passenger data, and similar progress is expected in cargo reporting.