The Nigerian aviation sector is undergoing a period of transformation, with the Minister of Aviation and Aerospace Development, Festus Keyamo, spearheading efforts to address the persistent issue of high air ticket prices, both domestically and internationally. Keyamo, during a press briefing, highlighted the multifaceted nature of the problem, pointing to a confluence of factors that have contributed to the exorbitant fares currently plaguing Nigerian travelers. He acknowledged the impact of limited access to affordable aircraft leasing options, the backlog of trapped funds owed to foreign airlines, and the burden of high airport taxes. These factors, he argued, have created a perfect storm, driving up ticket costs and making air travel increasingly unaffordable for many.
Keyamo explained that Nigerian airlines face significant challenges in leasing aircraft at competitive rates, often forcing them to resort to more expensive leasing agreements or outright purchases. This increased capital expenditure, he noted, inevitably translates into higher ticket prices for consumers. Recognizing the need for a long-term solution, the Minister revealed ongoing discussions with potential aircraft lessors. He expressed optimism regarding positive outcomes from these interactions and participation in international aviation conventions such as the Cape Town Convention, which he believes will lead to more favorable lease arrangements. He expects that new agreements stemming from these efforts will soon materialize and alleviate the financial strain on Nigerian carriers. Consequently, increased competition and lower operating costs would then contribute to more affordable airfares.
Addressing the issue of trapped funds, Keyamo shed light on how this financial bottleneck has indirectly inflated ticket prices. He revealed that foreign airlines, uncertain about the repatriation of their earnings, implemented a tiered pricing strategy, reserving lower fares for countries with more stable currencies and reliable repatriation processes. For Nigerian travelers, this meant limited access to these discounted fares, forcing them to purchase more expensive tickets. This calculated move by foreign airlines, Keyamo explained, was a response to the risk of currency devaluation, ensuring that the value of their earnings was protected. This differential pricing strategy effectively penalized Nigerian passengers, making international travel significantly more expensive.
The Minister further detailed how the Tinubu administration’s swift action in clearing the backlog of trapped funds has paved the way for renegotiating fares with foreign airlines. With the financial uncertainty removed, Keyamo emphasized that the justification for inflated prices no longer exists. The Nigerian Civil Aviation Authority (NCAA) is now actively engaged with these airlines, pushing for a review and readjustment of ticket prices to reflect the current financial landscape. This intervention, Keyamo hopes, will lead to a more equitable pricing structure for Nigerian travelers.
Beyond the issues of aircraft leasing and trapped funds, Keyamo also acknowledged the role of high airport taxes in contributing to the overall cost of air tickets. He highlighted the fact that Nigerian airports are among the most expensive in Africa in terms of taxation, a factor that airlines incorporate into their pricing models. While acknowledging the government’s role in this aspect, Keyamo clarified that addressing these taxes requires inter-ministerial collaboration, particularly with the Ministry of Finance. He emphasized that any changes to the existing tax structure would necessitate discussions with the Ministry of Finance, emphasizing the importance of a coordinated fiscal approach.
Looking ahead, Keyamo reiterated the government’s commitment to making air travel more accessible and affordable for Nigerians. He highlighted the ongoing dialogue with both domestic and international airlines, emphasizing the need for a collaborative approach to address the underlying issues driving high ticket prices. The Minister stressed that the goal is not simply to provide temporary relief but to implement sustainable solutions that will ensure long-term affordability and enhance the overall passenger experience. He also underscored the importance of consumer protection in the aviation sector, ensuring that passengers are not subjected to unfair pricing practices and that the market operates transparently. This holistic approach, Keyamo believes, is critical to achieving the broader goal of transforming the Nigerian aviation sector into a more competitive and passenger-friendly industry.
