…Assures Deregulation, Competition Will Drive Fares Down
The Minister of Aviation and Aerospace Development, Festus Keyamo, has clarified that the Federal Government does not have the authority to fix or cap domestic airline ticket prices in Nigeria, assuring that competition within the country’s deregulated aviation sector will eventually ease the burden on passengers.
Speaking after Wednesday’s Federal Executive Council (FEC) meeting presided over by President Bola Tinubu, Keyamo explained that Nigeria’s aviation sector has operated under a deregulated framework for decades, dating back to the era of former military ruler Ibrahim Babangida, when private airlines first gained the freedom to set their own fares.
“Government has absolutely no powers to fix prices for private enterprises. That is what deregulation means. But that does not mean we are leaving the airlines without engagement,” the minister said.
Keyamo noted that his invitation to appear before the Senate for discussions on soaring airfares coincided with the FEC meeting. He revealed that officials from the Nigerian Civil Aviation Authority (NCAA) and domestic carriers attended the session on his behalf to address lawmakers’ concerns.
According to the minister, airlines are grappling with significant cost pressures that inevitably drive fares upward. These include limited availability of aircraft, expensive lease agreements, insufficient local maintenance infrastructure, and the necessity to spend foreign currency on mandatory safety checks abroad.
“Airlines operate in a challenging environment. The scarcity of aircraft and high leasing costs, coupled with the need to ensure international safety standards, push fares up. These are realities that cannot be ignored,” Keyamo said.
A key development, he added, is the return of a major international aircraft lessor to Nigeria’s market after nearly two decades. This has allowed a local airline to secure a dry lease at one-third the previous rate, thanks to reforms under the Cape Town Convention that have strengthened investor confidence.
“With cheaper dry leases coming in, more airlines will have access to aircraft. More aircraft automatically means stronger competition. And competition is what brings prices down in any free economy,” Keyamo said. He assured Nigerians that passengers could expect fare relief in the coming months as new planes enter service.
On the subject of multiple taxes and fees, which ECOWAS recently highlighted as a barrier to efficient air travel, Keyamo acknowledged regional advice urging relief for operators but emphasized that fiscal policy falls outside his ministry’s jurisdiction.
“I cannot wake up one morning and abolish taxes. These revenues go into the Federation Account. The Finance Minister, the tax authorities, and other stakeholders must all be at the table,” he said. Keyamo added that he has formally raised these concerns with relevant fiscal authorities and that discussions are ongoing.
Beyond the issue of airfares, the minister outlined several FEC-approved initiatives designed to modernize aviation infrastructure, improve safety, and enhance passenger convenience. Key among these are significant upgrades to navigational and communication systems at airports nationwide.
He confirmed the extension of the maintenance contract with China Civil Engineering Construction Corporation (CCECC) for the new terminal at Aminu Kano International Airport. Additionally, the planned enhancements include the installation of Advanced Surface Movement Guidance and Control Systems (A-SMGCS) at Lagos and Abuja airports to detect runway obstructions, construction of modular air traffic control towers at eight airports, and upgrades to Very High Frequency (VHF) radio communication across nine airports, including Lagos, Abuja, Port Harcourt, Ilorin, Kano, Maiduguri, Sokoto, and Wukari.
“These systems improve communication between ground crews, air traffic controllers, and pilots, making approaches and departures safer,” Keyamo explained.
The Council also approved the installation of biometric-enabled electronic gates at all international airports to accelerate passenger clearance processes. “We have approval for the provision of biometric-enabled electronic gates, commonly called e-gates, to fast-track passenger solutions at the nation’s international airports,” the minister said.
Keyamo emphasized that these measures align with President Tinubu’s directive to modernize Nigeria’s aviation infrastructure and ensure safer, more efficient air travel across the country.
“The Federal Government remains committed to supporting the aviation sector while ensuring funding for vital infrastructure projects. These upgrades, coupled with the anticipated increase in aircraft supply and healthy competition among airlines, will benefit both the industry and passengers,” he said.
While acknowledging the current challenges of high airfares, Keyamo remained optimistic about the sector’s trajectory. He urged Nigerians to exercise patience as market-driven solutions take effect and noted that government engagement and regulatory oversight will continue to ensure the safety and stability of the aviation industry.
ENDS
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