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FX Volatility, Higher Taxes Drive Airfare Surge as Insecurity Reshapes Nigeria’s Holiday Travel

Public frustration is growing, with many Nigerians blaming government failure to secure highways for forcing travellers into expensive flights.

Fintech Insights by Fintech Insights
December 14, 2025
Home Spotlight

As Christmas and New Year celebrations approach, Nigerians are facing one of the most difficult travel seasons in recent memory, with soaring airfares, foreign exchange uncertainty and worsening insecurity on major highways reshaping how people move across the country.

 

Domestic flight prices have risen sharply by more than 100 percent on some routes as travellers abandon increasingly dangerous roads for the relative safety of air travel. The result is a festive season marked by tough choices: pay exorbitant fares, risk unsafe highways, or forgo family reunions altogether.

 

For many Nigerians, the fear of kidnappings and violent attacks now weighs as heavily as the cost of travel. Highways such as Abuja–Kaduna, Kaduna–Lokoja and Lokoja–Abuja have become notorious for abductions and robberies, while memories of the 2022 Abuja–Kaduna rail attack continue to fuel anxiety.

 

ALSO: FG New Tax Regime Outlaws Lagos, Ogun, Others Touting, Cash Payments, Multiple Taxation Systems

 

Despite these dangers, some travellers are pressing on. Barbara Brown, determined to reunite with her family, said the joy of the season outweighs her fears. “The excitement of seeing my parents and loved ones supersedes the fear of bandits or kidnappers,” she said.

 

Others are choosing caution. Elejoh Wada cancelled plans to travel to Kogi State entirely. “As much as I want to celebrate with my loved ones, the level of insecurity is too high,” she said.

 

As road travel grows riskier, demand for flights has surged, pushing ticket prices to record levels. A round-trip ticket from Abuja to Owerri around December 26 now ranges from about ₦480,000 to over ₦800,000. Abuja–Lagos fares have climbed from roughly ₦240,000 to over ₦330,000 within days, while Abuja–Port Harcourt and Abuja–Kano routes show similar spikes.

 

Industry data suggests the trend may continue. Domestic airfares on key routes have doubled over the past two years, yet passenger numbers are projected to rise from 15.9 million in 2023 to 25.7 million by 2029, reflecting Nigerians’ growing reliance on air travel despite rising costs.

 

Travel experts attribute the surge to a mix of foreign exchange volatility, policy uncertainty and rising aviation charges. Ezekiel Ikotun, Managing Director of Finchglow Travels, said airlines now price tickets to hedge against currency risks and delayed fund repatriation. “When policies are unstable and FX is uncertain, airlines build risk buffers into fares, and customers end up paying more,” he explained.

 

Rising taxes and charges are also compounding the pressure. Hakeem Abiola Bakare, Manager, B2B at Finchglow Travels, noted that ticket prices now include multiple levies—airport charges, fuel surcharges and new fees introduced from December. “Passengers ultimately bear these costs, which reduces disposable income and makes air travel even more elitist,” he said.

 

Public frustration is growing, with many Nigerians blaming government failure to secure highways for forcing travellers into expensive flights. However, Aviation Minister Festus Keyamo has said the federal government lacks the legal authority to cap domestic airfares, noting that the sector operates under a deregulated framework where airlines set prices independently.

 

Keyamo attributed high fares to structural challenges such as limited aircraft availability, costly leasing arrangements, the absence of local maintenance facilities, and airlines’ dependence on foreign exchange for overseas aircraft checks.

 

As the festive season peaks, Nigerians are left navigating a harsh reality: rising costs, persistent insecurity and limited options. For many families, the journey home; once a symbol of celebration has become a test of affordability, courage and survival.

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