NCAA Speaks on Air Fares, How Airlines Fix Ticket Prices in Nigeria

• Airfares in Nigeria have increased by more than 47% within one year, despite the calls for some moderation from the regulatory agencies
• Airlines argue that the airfares are a reflection of the increasing costs of operations and fuel, among other charges
• The Nigerian Civil Aviation Authority (NCAA) has explained what goes into deciding air fares

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

The Nigerian Civil Aviation Authority (NCAA) has clarified that it does not control airline ticket prices.

According to the NCAA, deciding price of airline tickets is deregulated worldwide, and Nigeria follows the same principles.

The NCAA director of Consumer Protection and Public Affairs, Michael Achimugu, explained that airlines must submit their airfare list to the Civil Aviation Authority (CAA) annually, following established guidelines.

Achimugu noted that the several factors have contributed to the airlines refusing to release cheaper tickets. One of them was the difficulty in repatriating funds.

He explained that the federal government had to step in to help the airlines get their stuck funds back, after which they were able to release low-inventory tickets.

Meanwhile, the airlines have now resorted to collecting dollar payments from travel agents for the sale of tickets.

NCAA explains reasons for expensive air fares

Achimugu disclosed that efforts are underway to help airlines provide more affordable tickets, despite high operational costs.

Achimugu noted that high operational charges at airports often force airlines to pass on these costs to passengers, leading to higher-priced tickets across within Africa.

To address this, the ECOWAS has directed that airports in countries across West Africa reduce their charges to allow the airlines to reduce their airfares, Achimugu told the PUNCH.

He added that Nigeria is toeing the path of these directives, and President Bola Tinubu had directed the airports to reduce operational charges on the airlines.

He said;

“So I think it’s in process because we also were asked recently to implement a certain number of things, but although that one is not within our own purview because we do not charge taxes at the airport, that’s FAAN and NAMA.”

He explained that the NCAA's role is primarily supervisory, working with agencies like CAA and NCCPC to help airlines reduce ticket prices.

Nigerians have complained severally about the rising costs of air tickets, but the airlines justified the high prices. Air Peace, for instance, have revealed that it costs over N14 million to run one flight within Nigeria.

Price of air tickets rise by 47.64% in one year

In related news by Legit.ng, Nigerians were turning to air transportation to avoid the insecurity and other hazards related with road travels.

This was after the cost of airfares rose by 47.64% in one year, as captured by the National Bureau of Statistics (NBS).

The report shows that air transportation costs were highest in the South-West region, followed by the North-Central, while the South-South recorded the lowest fares.

Source: Legit.ng