Domestic Economy Airfares Could Hit ₦1 Million in 2026, Allen Onyema Warns
Domestic air travel in Nigeria could become significantly more expensive in 2026, with economy class fares potentially rising as high as ₦1 million, according to Allen Onyema, Chairman and Chief Executive Officer of Air Peace.
The warning reflects mounting cost pressures facing Nigerian airlines, driven largely by changes expected under Nigeria’s new tax and fiscal framework scheduled to take effect from January 2026.
What Is Driving the Potential Fare Increase
Nigeria’s aviation sector operates in a high-cost environment. Airlines contend with expensive aircraft maintenance, foreign exchange exposure, high borrowing costs, and infrastructure challenges. According to industry leaders, recent tax reforms could further increase operating expenses by removing exemptions that previously helped keep ticket prices lower.
If these additional costs cannot be absorbed by airlines, they are likely to be passed directly to passengers through higher fares. This could push domestic economy tickets to levels that were previously unthinkable for most travelers.
Why This Matters Beyond Aviation
Rising airfares are not just an aviation issue. They have broader implications for Nigeria’s domestic economy, labour mobility, and even housing patterns.
As air travel becomes less affordable, business travel between major cities could slow. This may affect commercial activity, corporate site visits, real estate inspections, and regional investment flows. Developers, investors, and professionals who rely on frequent intercity travel may need to adjust how they operate.
High transport costs can also influence where people choose to live and work. If mobility between cities becomes more expensive, demand for housing may concentrate even further around major economic hubs, intensifying pressure on urban housing markets in cities like Lagos and Abuja.
Impact on Regional Development and Real Estate
Affordable domestic air travel has played a role in supporting regional connectivity, tourism, and emerging real estate markets outside Nigeria’s main cities. Sharp increases in ticket prices could slow interest in secondary cities, affecting hospitality developments, short-let investments, and mixed-use projects that depend on visitor traffic.
For property developers and investors, transport affordability is a key factor in market viability. Sustained increases in airfares could reshape demand patterns and investment decisions across Nigeria’s real estate landscape.
What to Watch Going Into 2026
As 2026 approaches, industry stakeholders may push for policy adjustments or targeted relief measures to prevent domestic air travel from becoming inaccessible to a large segment of the population. How policymakers balance revenue generation with economic mobility will be critical.
For the housing and real estate sector, rising airfares serve as a reminder that infrastructure costs, taxation, and mobility are closely linked to how cities grow, how markets connect, and how investment flows across the country.
