The Nigerian government has begun discussions with foreign airlines to address the rising cost of air travel. Minister of Aviation and Aerospace Development, Festus Keyamo, announced this initiative during a ministerial press briefing in Abuja.
Keyamo highlighted several factors contributing to the high cost of flight tickets, including difficulties in leasing aircraft affordably, trapped funds belonging to foreign airlines, and high airport taxes.
Challenges Facing Domestic Airlines
Nigerian airlines struggle to lease aircraft at competitive rates, forcing them to opt for expensive leasing options or outright purchases, which ultimately increases ticket prices.
“We don’t have access to lease aircraft at low costs. Our only option is expensive leasing or buying, and we are working to change that,” Keyamo explained. He noted that agreements such as the Cape Town Convention and Dublin Conference will help secure better aircraft leasing deals soon.
Foreign Airlines and Inflated Ticket Prices
The minister also revealed that foreign airlines have been deliberately increasing fares for Nigerian travelers due to concerns over currency fluctuations and the delay in repatriating their earnings.
Keyamo explained that these airlines offer lower fares in countries where they can immediately convert their earnings into dollars. However, in Nigeria, where repatriation has been delayed for years, they have adjusted prices to hedge against potential currency depreciation.
“For the last three to four years, foreign airlines have been selling only high-priced tickets to Nigerian travelers because of uncertainty in repatriating funds. Instead of selling tickets at N2 million or N3 million, they raise prices to N7 million, fearing the naira’s depreciation,” he stated.
Government Action to Lower Fares
To resolve the issue, the government has cleared the backlog of trapped airline funds, removing a major reason for inflated ticket prices. Keyamo stressed that airlines can no longer justify the high fares now that their earnings can be repatriated freely.
“President Bola Tinubu ensured that these outstanding funds were cleared. We have now told foreign airlines that they can no longer keep fares artificially high for Nigerian travelers,” he said.
High Airport Taxes Contributing to Cost
Another key issue affecting airfare prices is Nigeria’s high airport taxes, which make ticket costs higher than in neighboring countries like Ghana.
Keyamo acknowledged this problem, stating that while he does not have direct authority over revenue decisions, discussions are ongoing with the Ministry of Finance and relevant aviation agencies to find a solution.
“The Nigerian Civil Aviation Authority (NCAA) is leading negotiations with airlines to adjust their pricing,” he said. “We are also reviewing the taxes imposed by the Nigerian Airspace Management Authority and the Federal Airports Authority of Nigeria to see how they can be reduced.”
He emphasized that reducing these costs will help bring ticket prices down, making air travel more affordable for Nigerians. The government remains committed to ensuring that both domestic and international flights become more accessible to the public.
