Business
Passengers weigh options amid soaring airfares
•How to reduce fares, by operator
Soaring ticket prices on local airlines is causing unease for many intending passengers desiring to travel from Lagos , Abuja , Port Harcourt to other airports in the country.
Airfares between Lagos, Ilorin, Uyo, Calabar, Kano, Jos, Sokoto , Akure, Asaba, Anambra, Ogun State Airport , Ebonyi, Kaduna , Yola, Maiduguri and other routes have also experienced dramatic increment.
Though a few new carriers : Pioneer Airlines, Binani Air , UMZA Airlines have joined the older operators – Air Peace, Arik Air, AeroContractors, Max Air ,Green Africa Airways , United Nigeria Airlines, Ibom Air and ValueJet Airlines, air fares remain high.
Flight bookings on the portal of major local carriers as of Sunday December 14, 2025 from Lagos to the South Eastern , South – South parts of the country reveal limited seats and a fare regime of between N102,000 .00, N192, 600, N240,200 , N 335,000 as well as N430,000 for the economy and business class cabins. Seats on the aircraft are not available on the first class cabin.
Group Managing Director, Finchglow Holdings, Mr Bankole Bernard at the weekend called on the Federal Government to consider reduction in taxes and levies on airline tickets in order to drive down the oscillating cost of tickets for domestic air travel.
He said the multiplicity of levies and charges factored into air tickets by the relevant aeronautical agencies , cannot be absorbed by the airlines, but will be passed on to passengers.
Bernard said though ticket prices for local travel could be described as the highest in Nigeria, but attributed several reasons for the spike in fares, in particular the forces of demand and supply.
While airfares are oscillating on routes considered highly competitive with many airlines on the routes, the fare structure on routes flown by a single airline is prohibitive.
A survey showed a fare structure of N192, 600 on a less than 40 minutes flight between Lagos and Benin City by one of the carriers.
Bookings for travel between Lagos and Port Harcourt for the week indicates a fare regime of N335, 500, for a one way journey.
As passengers express their frustrations over the trend, many travellers are planning to either review their decision to travel or patronise other modes of transportation,
Though air transportation leverages speed , safety and comfort, the spike in airfares has elicited a backlash from many industry watchers and regulators.
Worried over the development, the Nigerian Civil Aviation Authority (NCAA), has expressed its disapproval over reasons cited by local carriers for pulling up airfares,
Its spokesperson, Mr Michael Achimugu said the number of charges and levies imposed the aviation agencies could not be held liable for the skyrocketing airfares.
Aviation experts say some key factors : yield management system and capacity determine the cost of airline tickets.
Speaking in an interview, Group Managing Director of FinchGlow Holdings, Mr Bankole Bernard, said hope of airfares dipping for now appears unrealistic as more passengers are surging into airports to undertake their end of year travels.
Bernard said business projections for ‘Detty December’ , has also occasioned distortions in pricing , not just for airfares, but has also had a debilitating effect on e- hailing rides, hotel prices, the cost of short letting facilities, prices for events, and other products and services associated with end of year celebrations.
While describing the fares as about the highest in recent years, he said multiple taxes and levies factored into passengers ticket by aviation agencies add up to the prohibitive charge regime.
Obiorah Okonkwo, Executive Chairman of United Nigeria Airlines, had called on the national assembly to reduce the multiple taxation plaguing domestic airlines, saying taxes are a key driver of high airfares in the country.
Aviation expert and President of the Aircraft Owners and Pilots Association of Nigeria, Dr. Alex Nwuba described the recent surge in domestic ticket prices as a recurring seasonal pattern.
He said fares typically rise sharply every December because many travellers book late, pushing prices into the highest fare brackets.
The increase, according to Nwuba, is a normal economic response: airlines adjust prices to balance demand and compensate for low fares during off-peak periods.
“It’s not new. Every year, it’s the same. Prices go up at Christmas time. The forces of economics at play. It is a demand-driven price increase, and it is compensation for low fares during the low season,” Nwuba said.
He explained that airline tickets are sold in a “bucket” system, where early buyers benefit from lower fares while prices rise as flights fill up. Many passengers waited until December instead of booking in October or earlier when fares were cheaper, which has contributed to the current steep increase.
Nwuba emphasised that the surge is driven by demand and reflects normal aviation economics rather than deliberate exploitation.
Nwuba also pointed to structural challenges in Nigeria’s aviation sector that contribute to high ticket prices.
With only about zero point two of the population flying, he noted that the industry cannot achieve economies of scale, unlike Europe and the United States, where annual flight volumes exceed population sizes.
Additional factors, including limited aircraft capacity, a weakened naira over time, fuel costs approximately 17 percent above global rates, and multiple aviation charges, further drive up operating expenses for airlines, he noted.
He emphasised that airlines are responding to seasonal demand and economic realities rather than exploiting passengers. Nwuba called for a comprehensive overhaul of Nigeria’s aviation system, including reforms to taxation and operational charges, to make flying more accessible and reduce steep fare spikes during peak periods.
Managing Director of Belujane Konsult, Mr Chris Azu Aligbe, admitted that the fares are totally unjustifiable, further describing the increase to the plight of passengers as ‘insensitive’.
“The increases are not fair to the industry and to the Minister of Aviation and Aerospace Development, Mr Festus Keyamo, who has done so much to improve the status of the airlines. They are bringing his efforts almost to nought because with increases, people are criticising the NCAA and the Minister”.
Aligbe further stated that high taxes are a mischievous diversionary tactic, noting that taxes have not changed; they have remained the same for a long time.
He said, ‘It is very insensitive. FAAN has not increased their charges. No other people have increased charges. That is why I said it is very insensitive and exploitative”.
The carriers’ actions, he said, have justified the emergence of state-owned airlines, describing existing airlines as pelicans that think they are pecking at wood, adding, “Still, they peck themselves because the emergence of a state-owned airline is now justified.”
“Invariably, even for those of them who stand up against national flag carriers, they have brought up the issue that justifies the fact that there is an urgent need for a national flag carrier. In our country, there is no benchmark. No airline is a benchmark for airline operations. There is none of them. They want to get into a monopoly or quasi-monopoly. It shows that airline operations in our country are far from what they are in other climes”, he added.
Chief Commercial Officer of ValueJet, Trevor Henry, said the sharp increase is simply due to the season, which typically drives higher airfares, and attributed it to leased aeroplanes for the Christmas operations.
He said, “These aircraft arrived in November; they’re going to be here till February and March next year, most probably. If you take November, December, January, February, or mid-November through to mid-April. Now, the high season falls away from mid-February. Then we have a normal market. In fact, we go from high to low. We go from high to low. We start picking up as we approach Easter.”
“So what you are doing, what these airlines are doing is they’re trying to fill their coffers with some revenue. It’s like a bear that hibernates. And that’s what the airlines are doing. Now, the people that they are charging those rates to are people who are earning good salaries.”
Henry admitted the huge capacity on the domestic market with over a dozen airlines, saying, “Today we have a dozen and a half airlines. So there’s extra capacity. Umza came along, United has now got leased aircraft on the ground. So what has actually happened is, if they did not bring in those aircraft, we all would have had a full flight.”
“Our market actually has too much capacity. Not tomorrow, but next week or next month. Call me in mid-January, or one month from today, and I will tell you all the flights are empty. And we’re all going to be selling around N100,000-N120,000. And there will be someone amongst us that will sell for N60,000, N70,000, N80,000.”
Transport fares from Lagos to South-Eastern states have started climbing as the annual Christmas movement gathers pace, signalling tougher travel costs for thousands planning to return home for the festivities.
Operators across major parks say the increases will intensify from December 18, when demand traditionally peaks and available seats become scarce. Transport operators announce new fares to the South-East, Kano, other routes amid Christmas celebrations.
A market survey across key Lagos terminals shows that current fares now range between N25,500 and N73,500, depending on destination, vehicle size, and comfort level.
Transporters project that prices will rise by as much as 20 to 30 percent during the peak travel window, reflecting the pressure of heavy passenger traffic and rising operating costs.
The South-East, comprising Anambra, Imo, Enugu, Ebonyi, and Abia states, remains one of the busiest outbound corridors from Lagos every December. Millions make the journey home for family reunions, weddings, funerals, and cultural celebrations, turning bus parks into packed hubs from mid-December through early January. A review of prices at Jibowu, Mile 2, Iyana Ipaja, and Ikorodu Garage, supported by online checks, shows varied fares as of December 11, 2025.
Fifteen-seater buses currently charge between N25,500 and N38,000 on the lower end, while seven-seater buses, often preferred for speed and comfort, range from about N55,000 to over N73,500 depending on the operator and destination.
Passengers say the gradual increases are already being felt. Many travellers who delayed booking are now facing higher prices or limited departure options, especially for popular routes into Anambra and Imo states. What to expect as peak travel begins Transport operators say the real surge typically starts around December 18.
According to a ticketing clerk at Ikorodu terminal, fare adjustments are usually incremental, rising by N1,000 to N1,500 at intervals until peak levels are reached. Last year’s pattern offers a clear guide. In December 2024, fares for 15-seater buses that normally sold for around N32,000 climbed to about N41,500 at the height of the season. Based on this trend, operators expect a similar or stronger increase this year. During the peak period, 15-seater buses could charge between N30,600 and N67,600, while seven-seater vehicles may range from about N55,000 to as high as N93,600 for premium services with timely departures.
Top-tier transport companies are expected to peg fares for 15-seater buses between N54,000 and N67,600. Why Christmas travel comes at a premium .
The festive fare surge is largely driven by demand and supply pressures. With far more passengers than available seats, transport companies adjust prices to manage demand and keep operations viable.
A park manager at Iyana Ipaja explained that return trips from the South-East to Lagos often run nearly empty in December. High outbound fares help cover the cost of these low-occupancy return journeys, a challenge confirmed by operators across multiple parks.
Speaking at a briefing in Lagos at the weekend, Bernard, a former President of National Association of Nigerian Travel Agencies (NANTA), said the skyrocketing costs of air tickets has become concerning, but regretted that there is nothing the regulatory body could do to ameliorate the situation.
Describing the development as an interplay of market forces, he , however, noted if more airlines get on the scene, competition with more aircraft seats on the offer could reduce the price of air tickets.
He also attributed projections for “ Detty December ‘” , which will cause a high volume of passengers getting into the country as one of the factors driving the hike in airfares.
While reviewing activities of the air travel travel ecosystem in 2025, Bernard commended the President Bola Ahmed Tinubu administration for creating a series of activities that has created a positive outlook for the sector.
Such activities, the FinchGlow Holdings Group Managing Director said has created a positive outlook for the aviation sector, which has also had a good impact for air travel.
He said : “ The President Bola Ahmed Tinubu administration has resolved the challenge of foreign airlines blocked funds, achieved stability in the foreign exchange floating and other interventions.”
Bernard said while passenger figures have improved in the outgoing year, with increasing bookings from passengers, there is , however, a need to develop a central database for the Nigerian air travel sector to track growth and monitor the performance of several segments of the industry.
The FinchGlow Holdings GMD called on the relevant aviation agencies saddled with fixing sore facilities at airports nationwide to live up to their obligation and ensure the prevailing infrastructure meets global standards.
He in particular, canvassed the installation of wireless internet services to improve passenger travel and airport experience.
Bernard said it is disheartening that telecommunication companies in Nigeria have not given serious consideration to the opportunities available for revenue generation by investing in such airport infrastructure.
He interested telcos to partner the Federal Airports Authority of Nigeria (FAAN), on how to drive the potential benefits from the value chain.
Bernard said while 2025 has offered opportunities for the FinchGlow Conglomerate to deepen its industry engagement through partnerships touching many new business initiatives, the coming year will see it changing the face of cargo business in the country.
He said the Conglomerate may set its eyes on new ventures including establishing a Flying School and the setting up of a full cargo airline to drive opportunities in the courier , logistics and product packaging value chain.
Bernard said:” We look forward to changing the face of air cargo in Nigeria by ensuring that the expected global standards and structure are introduced. We need to clean up the system and ensure that only airlines and certified cargo agents are involved in the business of cargo.
“ If you look at operations at the cargo village at the Lagos Airport, it is a complete eyesore. But, now that our company has been appointed to undertake the Cargo Accounts Settling Centre (CASS), a complete paradigm shift is going to take place in that space.
“ So far about nine airlines are already on the CASS platform, more members will join and the whole idea is to open up the system for FAAN to see how the opportunities in air cargo could be fully tapped and how Nigeria could be a biggest player in that space.
“There are huge untapped opportunities in air cargo. We could be so much from this value chain. The under belly of an aircraft is not the only space to load and ferry cargo. Why can’t airlines invest in smaller aircraft dedicated for cargo operations .That is the new thinking we hope to bring on board”
He lauded State Governments that have started making investments in cargo airports and airlines, describing the projects as a paradigm shift in the sector.
He commended Ogun State Government for its inroads into the aviation sector urging other sub national entities to bring such investments into their jurisdictions, which will create jobs, and contribute to the development of local economies.
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