The Federal Government, through the Ministry of Aviation and Aerospace Development, has initiated crucial discussions with foreign airlines to address the soaring cost of air travel for Nigerian passengers. Hobnob News reports that this move is part of a broader strategy to alleviate the financial burden on travelers, while also enhancing airport safety and security.
Minister Festus Keyamo, speaking at a Ministerial Press Briefing in Abuja, outlined several key factors contributing to the exorbitant airfares, including limited access to affordable aircraft leasing, trapped funds of foreign airlines, and high airport taxes.
Keyamo highlighted the challenges faced by Nigerian airlines in leasing aircraft at competitive rates, forcing them to resort to costly alternatives. “We have domestic tickets, and we have international tickets. I talked about domestic tickets and the fact that we don’t have access to lease aircraft at a very cheap cost,” he explained. “We will only go for the very expensive option of leasing aircraft or buying aircraft. We are addressing that.”
A significant point of contention has been the inflated ticket prices imposed by foreign airlines on Nigerian travelers. Keyamo revealed that airlines deliberately set higher fares due to uncertainties surrounding the repatriation of their earnings, fearing currency depreciation.
“They said because they were taking into account inflationary rates of the money that will be trapped, they don’t know where they will get the money back, so they were building on top of it, inflationary rates, that by the time they want to get the money back, the naira may have collapsed,” Keyamo stated.
This practice resulted in Nigerian passengers paying significantly higher fares compared to travelers from other countries, such as Ghana. To rectify this, the government, under President Bola Tinubu, cleared the backlog of trapped funds, paving the way for negotiations with the airlines.
“President Bola Tinubu, being very smart on this, cleared that first. And so we called them and said, look, it was recently we called them, you have been enjoying this high price because Nigerians were paying. So by the time we cleared this thing, they were still enjoying the high fares. We said, no, you cannot continue to enjoy it,” Keyamo emphasized.
The Nigerian Civil Aviation Authority (NCAA) is leading the discussions with the airlines, focusing on adjusting their pricing and addressing other cost-related issues, including taxation. Keyamo acknowledged that high government-imposed taxes at Nigerian airports contribute to the expensive tickets.
“Our airport, they say, is the highest in Africa, their taxes,” he noted. “The taxes imposed in our airports and navigation routes, they say, is one of the highest in Africa. And the airlines come here, they bill that too because they have to pay. And that trickles down to the passengers. So we will tackle that.”
However, he clarified that addressing these taxes would require collaboration with the Ministry of Finance, as the Aviation Minister does not have the authority to unilaterally reduce revenue.
The ongoing negotiations represent a crucial step towards easing the financial burden on Nigerian air travelers. The government’s proactive approach signals a commitment to ensuring fair pricing and improving the overall aviation experience. Hobnob News will continue to monitor these developments and provide updates.
