Air Peace Chairman and CEO, Allen Onyema, has warned that domestic airfares in Nigeria could surpass ₦1 million starting next year.

Onyema attributed the potential hike to the planned implementation of Nigeria’s new tax reform laws, set to take effect in January 2026. He explained that the reforms will eliminate several tax exemptions airlines currently enjoy under the 2020 Finance Act—reliefs that have helped reduce operating costs. Without these exemptions, airlines’ expenses will rise sharply, forcing them to pass the additional costs on to passengers through higher ticket prices.

However, the Nigerian Civil Aviation Authority (NCAA) dismissed claims that multiple taxes inflate domestic airfares. Spokesperson Michael Achimugu said airlines do not pay the alleged levies and insisted that fare increases reflect normal market forces of demand and supply.

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