Allen Onyema, chief executive officer of Air Peace, has said Nigerians are paying some of the cheapest domestic airfares globally, despite widespread perceptions that local airlines overcharge passengers.
Speaking during an interview on ARISE News, Onyema compared air travel costs in Nigeria with those in developed markets, noting that short domestic flights in countries like the United States often cost significantly more than similar routes within Nigeria.
According to him, Nigerian airlines operate under far more challenging conditions, including high financing costs, limited access to nearby aircraft maintenance facilities, and the additional expense of ferrying aircraft and engines abroad for repairs. He stressed that although aviation costs are globally denominated in foreign currency, local airlines absorb much higher operational pressures.
Onyema explained that despite these constraints, domestic airfares in Nigeria remain relatively low when converted to foreign exchange, adding that airlines often retain only a fraction of ticket revenue after mandatory deductions.
He attributed this situation to what he described as excessive taxes, levies, and regulatory charges imposed on operators. Among them is a mandatory charge collected by aviation authorities, which Onyema argued should ideally be paid directly by passengers rather than deducted from airline revenue.
The Air Peace chief said the cumulative effect of these charges weakens demand, restricts airline growth, and fuels public misconceptions about profitability within the sector.
He further cited international aviation standards, noting that global best practice encourages regulators to focus on cost recovery rather than revenue generation. According to him, when regulatory agencies prioritise income over sustainability, airlines bear the brunt, limiting their ability to expand fleets, improve services, and remain financially stable.
Onyema warned that unless the burden of multiple charges is addressed, Nigerian airlines will continue to struggle to grow, despite strong passenger demand and the strategic importance of aviation to national economic development.
