Keyamo Explains Why FG Cannot Fix Prices of Airflight Tickets Under Deregulated Aviation System
- Minister of Aviation, Festus Keyamo, has said the Federal Government cannot fix airline ticket prices due to Nigeria’s deregulated aviation system
- The minister explained that airlines face high operating costs, including expensive leases and foreign-currency-based maintenance
- He disclosed that the Federal Executive Council has approved several upgrades to navigation, communication, and air traffic control systems nationwide
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, tech and macroeconomic trends in Nigeria.
The Minister of Aviation and Aerospace Development, Festus Keyamo, has stated that the federal government lacks the legal authority to regulate or cap domestic airfares, despite rising ticket costs nationwide.
He stated this on Wednesday while briefing State House Correspondents after the Federal Executive Council (FEC) meeting chaired by President Bola Tinubu in Abuja.
Keyamo explained that Nigeria’s aviation industry has operated under a deregulated structure since the early 1990s, giving private airlines full autonomy to set ticket prices.
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He acknowledged the sharp increase in airfares but noted that the government has absolutely no power to fix prices for private enterprises. Although he said engagement with operators was ongoing.
The minister noted that his inability to attend a Senate session on airfare concerns was due to the FEC meeting, but said the Nigerian Civil Aviation Authority (NCAA) and domestic airlines represented the ministry.
Keyamo outlined several challenges contributing to high fares, including limited aircraft availability, costly lease arrangements, and inadequate local maintenance capacity.
He added that many airlines still rely on foreign currency to conduct mandatory safety checks abroad, increasing their overall expenses.
Despite these constraints, he highlighted a recent development he described as positive for the sector. He noted that a major international aircraft lessor has returned to Nigeria’s market after almost 20 years, allowing a local carrier to secure a more affordable dry lease under improved business conditions enabled by the Cape Town Convention.
He said cheaper leases would help airlines acquire more aircraft, which is expected to strengthen competition and eventually bring fares down.
“Competition is what brings prices down in any free economy,” he said
Responding to concerns from ECOWAS about multiple taxes affecting airline operations, Keyamo said his ministry cannot unilaterally adjust or remove taxes.
He explained that tax issues fall under the responsibility of the Finance Ministry and relevant authorities.
He confirmed that discussions are underway with fiscal agencies to find a balance between supporting airlines and ensuring adequate revenue for national development.
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FEC approves major aviation infrastructure upgrades
Keyamo also announced that the Federal Government has approved several projects aimed at improving safety, communication, and passenger experience across the country’s airports.
These include the extension of the maintenance contract for the new terminal at Aminu Kano International Airport, upgrades to navigation and communication systems, and improvements to air traffic control infrastructure.
Among the approved projects are: Installation of Advanced Surface Movement Guidance and Control Systems (A-SMGCS) at Lagos and Abuja airports; construction of modular air traffic control towers at eight airports; upgrade of VHF radio communication systems at nine airports, including Lagos, Port Harcourt, Ilorin, Abuja, Kano, Maiduguri, Sokoto, and Wukari; installation of aeronautical frequency spectrum monitoring and interference detection systems; and procurement and upgrade of remote-control air–ground communication equipment.
Biometric E-gates coming to all international airports
Keyamo added that the FEC has approved the installation of biometric-enabled electronic gates at all international airports to fast-track passenger processing and improve border control efficiency.
He noted that the reforms reflect President Tinubu’s vision to modernise the aviation sector and deliver safer, more efficient air travel for Nigerians.
Senate summons Keyamo over rising airfare
Legit.ng earlier reported that the Senate summoned the Aviation Minister and key industry stakeholders over the sharp rise in domestic airfares.
The lawmakers described the increase as “unacceptable” as ticket prices on major routes now range between N400,000 and N650,000, making travel difficult for many Nigerians.
An emergency meeting was scheduled within the week as the Senate seeks urgent solutions to stabilise air travel costs.
Source: Legit.ng
