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Yuletide: Local flights break N300,000 mark

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The cost of airfares on some domestic routes has jumped by about 150 per cent, crossing N300,000, as travellers now experience an astronomical rise in air ticket rates due to the high passenger volume associated with the Yuletide, among others.

Checks by The PUNCH showed that the hike in airfares was particularly on the South-South and South-East routes. These routes have high patronage, as most domestic air movements during the festive period are to these areas.

Usually, during the Yuletide rush, airfares are raised due to the high demand for tickets. But this season, passengers say prices of air tickets are out of reach following various economic challenges. Operators told our correspondent that the shortage of aircraft further compounded the airfare hike.

Before the festive period, air tickets on domestic routes hovered around N120,000. But an analysis of domestic airfares on the websites of airlines on Tuesday showed that ticket costs, particularly to the South-South and South-East regions, have increased by about 150 per cent compared to what the prices were before the Yuletide.

A flight search on the booking platform of Air Peace showed that a one-way economy ticket from Lagos to Asaba in Delta State moved from about N120,000 to over N300,000. The airline, between December 24 – 29, put the same ticket at N337,500.

Also, Delta State–bound passengers from Abuja will buy tickets from the airline for N335,500 between 23 – 28  December of this year. But the price may drop to N240,000 between 29 – 31 of the same month.

However, Aero Contractors offered a seat for N238,452 to Asaba on December 24, 2025. United Nigeria Airlines will also fly Lagos to Asaba at N399,999 and fly Abuja to Asaba between December 22 – 26 at prices ranging from  N335,499 and N360,499.

Findings further showed that Air Peace may only fly between Lagos and Enugu from December 28 – 29  for prices ranging between N335,500 and N430,700. The airline will also sell its ticket for N335,500 from December 24 – 28, and sell for N240,200 on the 29th of the same month for domestic passengers flying from Abuja to Enugu.

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Lagos to Calabar on Aero Contractors will cost between N187,976 and N151,786 between December 22 – 24, while United Nigeria will sell a seat on its Lagos–Benin flight for N335,499 between December 22 – 30, but it increased the price by N10,000 on December 31.

Air Peace will sell its Lagos–Port Harcourt ticket for N335,500 between the 23rd–29th of the month.

Most dramatic flights are within a one-hour range. For instance, Asaba and Benin are about 40 minutes by air and about four hours by road.

Many Nigerians prefer air travel not only because it is faster but also because it helps them avoid security challenges across the country.

Lagos–Anambra on December 17, on United Nigeria Airlines will cost N399,999. From December 18 – 21 have been sold out. For Owerri-bound passengers from Lagos on the UNA flight, prices fluctuate between N335,499 and N499,998 from December 16, 2025.

Following the new price surge, some passengers are now considering travelling by road to their destinations as an alternative amidst the insecurity currently ravaging the country. Meanwhile, aside from the lack of adequate aircraft to operate, operators also lament multiple taxation as another reason for the hike in airfares.

Experts in the industry ascribed one of the reasons for the aircraft shortage to maintenance hiccups. Many of the airlines’ planes are parked in different Maintenance, Repair, and Overhaul hangars scattered abroad.

In a recent paper, Charles Grant, Chief Financial Officer, Aero Contractors, said Nigerian airlines use only 38 serviceable aircraft—one of the clearest signs that the aviation system requires intervention.

He blamed the low number of aircraft on multiple charges and unfriendly government policies, appealing to the government to stop seeing aviation as a revenue-generating sector and instead reinvest funds amassed from aviation back into the sector.

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“Today, most Nigerian airlines operate with just four to six active aircraft, despite national demand. That’s not a choice; it’s the result of punitive economics,” Grant stated.

Also, in a dramatic turn of events, Nigeria’s largest carrier, Air Peace, disclosed that in the past weeks it has experienced several operational disruptions, resulting in flight delays and cancellations after its lessor, SmartLynx Airlines, withdrew three aircraft from its fleet unannounced after receiving payment in advance.

Chief Commercial Officer at Air Peace, Nowel Ngala, explained that the airline entered a wet-lease agreement with SmartLynx because 13 of its aircraft are currently undergoing scheduled maintenance abroad. Ngala stated that to avoid service gaps, Air Peace leased aircraft from SmartLynx in a bid to support Nigerian passengers during peak travel periods.

But he lamented that the “abrupt and unjustified withdrawal of four aircraft we wet-leased from SmartLynx Airlines caused disruptions. This withdrawal was done without prior notice, a clear violation of industry standards and of the agreement between both parties.”

He, however, assured that despite these setbacks, some of its aircraft have completed maintenance and are returning to service.

Experts speak

Speaking with our correspondent over the phone, President of the Aircraft Owners and Pilots Association of Nigeria, Dr Alex Nwuba, confirmed that airlines are currently faced with capacity shortfalls but stressed that airlines are striving to bridge the gap.

He said, “You are correct that airline capacity shortfalls often contribute to higher fares during festive periods. In the case of Nigeria this season, we have seen some disruptions. For example, Air Peace lost a number of aircraft, which reduced their daily capacity by roughly 300 seats. At the same time, however, the airline has announced the return of several aircraft, which should help to fill those gaps and at least maintain current capacity levels.

“In addition, two more airlines are expected to commence operations during this period, which will further expand available seats and improve overall industry capacity. If external challenges such as security do not interfere, the industry should fare reasonably well this year.”

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Nwuba further said passengers should expect higher fares, describing the pattern as seasonal.

“That said, consumers should still expect higher fares, as this is traditionally the seasonal pattern. Demand always rises during festive periods, and prices reflect that. Nigeria, however, stands to benefit from this increased travel activity, as it supports tourism and boosts confidence in the aviation sector. All things being equal, the outlook remains positive,” he stressed.

Former Director-General of the Nigeria Civil Aviation Authority, Harold Demuren, appealed to the Federal Government to do whatever is possible to support Nigerian operators to achieve more capacity. Demuren added that if it would entail renegotiation of some Bilateral Air Service Agreements that are one-sided against Nigerian operators, the government should not hesitate.

He said, “In BASA, both parties must benefit; it should not be one-sided. The Nigerian government needs to protect the local carriers. You can’t be wrong supporting your own. You can renegotiate your BASAs. It may be difficult, but you can renegotiate.”

Industry expert, Olumide Ohunayo, described the situation as seasonal but appealed to the airlines to pay attention to airline staff so as to get the best from them in handling the passenger volume that the season brings professionally.

“This is seasonal, but I can only greet airline operators who are working at this time. However, the season comes with its attendant challenges, and airlines must pay attention to passengers and airline staff members, too. Because it is when they are well taken care of that they will also handle passengers professionally as expected,” he said.

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EFCC Begins Probe Of Ex-NMDPRA Boss After Dangote’s Petition

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The Economic and Financial Crimes Commission (EFCC) has commenced an investigation into a petition filed against the former Managing Director of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, by the President of Dangote Group, Aliko Dangote.

It was gathered that Dangote formally submitted the petition to the EFCC earlier this week through his legal representative, following the withdrawal of a similar petition from the Independent Corrupt Practices and Other Related Offences Commission (ICPC).

Dangote had initially approached the ICPC, asking it to investigate Ahmed over allegations that he spent about $5 million on his children’s secondary education in Switzerland, an expense allegedly inconsistent with his known earnings as a public officer.

Although the petition was later withdrawn, the ICPC had said it would continue with its investigation.

Confirming the new development, a senior EFCC officer at the commission’s headquarters in Abuja, who spoke on condition of anonymity because he was not authorised to speak publicly, said the petition had been received and investigations had commenced.

“They have brought the petition to us, and an investigation has commenced on it. Serious work is being done concerning it,” the source said.

In the petition signed by Dangote’s lead counsel, Dr O.J. Onoja (SAN), the businessman urged the EFCC to investigate allegations of abuse of office and corrupt enrichment against Ahmed and to prosecute him if found culpable.

The petition further stated that Dangote was ready to provide documentary and other evidence to support claims of financial misconduct and impunity against the former regulator.

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“We make bold to state that the commission is strategically positioned, along with sister agencies, to prosecute financial crimes and corruption-related offences, and upon establishing a prima facie case, the courts do not hesitate to punish offenders,” the petition read, citing recent court decisions.

Onoja also called on the EFCC, under the leadership of its chairman, Olanipekun Olukoyede, to thoroughly investigate the allegations and take appropriate legal action where necessary.

When contacted, the EFCC spokesperson, Dele Oyewale, declined to comment on the matter but promised to respond later. No official reaction had been received as of the time of filing this report.

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IMPORTANT NOTICE REGARDING MONEY TRANSFERS IN NIGERIA (2026)

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Starting from *January 2026*, please ensure that *any money you send* to anyone — including me — comes with a *clear description* or *payment remark*. This is *very important* for tax purposes.

Use descriptions like:

– *Gift*
– *Loan*
– *Loan Repayment*
– *House Rent*
– *School Fees*
– *Feeding*
– *Medical*
– *Support*,
– School fee etc.

*Why this matters:*

In 2026, any money entering your account *without a description* may be treated as *income*, and *IRS (or relevant tax authority)* could tax it — or even worse, ask you to explain the source.

The *first ₦800,000* may be *tax-free*, but after that, any unexplained funds might attract up to *20% tax*, or in extreme cases, lead to legal issues.

So please:

– *Always include a payment remark.*
– *Avoid using USSD or apps that don’t allow descriptions.*
– *Ask the receiver for the correct description BEFORE sending.*

As for me, *do not send me any money* without discussing it with me first.
And no, I don’t want to hear “Sir/Ma, I used USSD” – if you can’t add a description, *hold your money*.

From now on, *I will tell you exactly what to write in the payment remark.*
Let’s all form the habit of *adding payment descriptions now* to avoid problems later.

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FG earmarks N1.7tn in 2026 budget for unpaid contractors

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The Federal Government has budgeted the sum of N1.7tn in the 2026 Appropriation Bill to settle outstanding debts owed to contractors for capital projects executed in 2024.

A breakdown of the proposed 2026 national budget shows that the amount is captured under the line item titled “Provision for 2024 Outstanding Contractor’s Liabilities,” signalling official recognition of delayed payments to contractors amid recent protests over delayed settlements.

This budgetary provision follows mounting pressure from indigenous contractors and civil society groups who, in 2025, raised alarm over unpaid contractual obligations allegedly exceeding N2tn.

Some groups under the All Indigenous Contractors Association of Nigeria had also staged demonstrations in Abuja, lamenting the severe impact of delayed payments on their operations, with many contractors reportedly unable to service bank loans taken to execute government projects.

Earlier, Minister of Works David Umahi had promised to clear verified arrears owed to federal contractors before the end of 2025. However, only partial payments were made amid revenue constraints, prompting the inclusion of the N1.7tn line item in the 2026 budget as a catch-up mechanism.

In addition to the N1.7tn for 2024 liabilities, the government has also budgeted N100bn for a separate line item labelled “Payment of Local Contractors’ Debts/Other Liabilities”, which may cover legacy debts from previous years, smaller contract claims, or unsettled financial commitments that were not fully verified in the current audit cycle.

The total N1.8tn allocation is part of the broader N23.2tn capital expenditure in the 2026 fiscal plan, which seeks to ramp up infrastructure delivery while cleaning up past obligations.

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Nigeria’s contractor debt backlog has been a recurring fiscal issue, worsened by delayed capital releases, partial cash-backing of budgeted projects, and underperformance in revenue targets.

Speaking with journalists at the entrance of the Federal Ministry of Finance in December 2025, the National Secretary of the All Indigenous Contractors Association of Nigeria, Babatunde Seun-Oyeniyi, said the government’s failure to release funds after multiple assurances had forced contractors to resume protests. He said members of the association were owed more than N500bn for projects already completed and commissioned.

He explained that despite recent assurances from the Minister of Finance, Wale Edun, no payment had been made. “After the National Assembly intervened, they told us that they will sit the minister down over this matter.  And we immediately stopped the protest,” he said.

According to him, repeated follow-up meetings with the minister had produced no tangible progress. “They have not responded to our request,” he said. “In fact, more than six times we have come here. Last week, we were here throughout the night before the Minister of Finance came.”

Oyeniyi said that although some payment warrants had been sighted, no funds had been released. “Specifically, when we collate, they are owing more than N500bn for all indigenous contractors. We only see warrants; there is no cash back.”

He accused officials of attempting to push the payments into the next fiscal year. “The problem is that they want to put us into a backlog. They want to shift us to 2026; that 2026, they are going to pay,” he alleged. “They will turn us into debt, and we don’t want that. We won’t leave here until we are paid.”

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However, The PUNCH observed that earlier in August 2025, the Federal Government claimed that it had cleared over N2tn in outstanding capital budget obligations from the 2024 fiscal year, with a pledge to prioritise the timely release of 2025 capital funds.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this at a ministerial press briefing in Abuja, where he also declared that Nigeria is “open for business” to global investors on the back of improved economic stability.

“In the last quarter, we did pay contractors over N2tn to settle outstanding capital budget obligations. That is from last year,” Edun said. “At the moment, we have no pending obligations that are not being processed and financed. And the focus will now shift to 2025 capital releases.”

By December 2025, The PUNCH reported that President Bola Tinubu expressed “grave displeasure” over the backlog of unpaid federal contractors and set up a high-level committee to resolve the bottlenecks and fund repayments.

Briefing State House correspondents after the Federal Executive Council meeting in Abuja, Special Adviser on Information and Strategy, Bayo Onanuga, said the President was “upset” after learning that about 2,000 contractors are owed. “He made it very, very clear he is not happy and wants a one-stop solution,” Onanuga told journalists.

Tinubu directed the setting up of a committee to verify all claims from federal contractors. The new budget’s provisions are expected to draw from the outcome of that verification exercise and may be disbursed in tranches based on confirmed and certified claims.

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The total proposed 2026 national budget stands at N58.47tn, with N23.2tn earmarked for capital expenditure, N15.9tn for debt servicing, N15.25tn for recurrent spending, and N4.09tn for statutory transfers.

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