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Despite widespread complaints from air travelers over what many describe as exorbitant ticket prices, the Federal Government has clarified that it has no legal authority to regulate or fix domestic airfares, as Nigeria’s aviation sector has been fully deregulated for decades.
Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, made this known while briefing State House correspondents after the Federal Executive Council (FEC) meeting presided over by President Bola Tinubu at the Presidential Villa on Wednesday, December 10. He explained that the deregulation policy, which allows private airlines to determine their own ticket prices, dates back to the administration of former military president Ibrahim Babangida.
“Government has absolutely no powers to fix prices for private enterprises. That is what deregulation means. But that does not mean we are leaving the airlines without engagement,” Keyamo said.
Keyamo acknowledged that airline operators face several cost pressures that ultimately influence airfare pricing, including limited access to aircraft, unfavourable lease terms, lack of local maintenance facilities, and the continued need for foreign exchange to carry out mandatory C-checks abroad.
He highlighted a major development under the current administration that could bring relief: the return of a major international aircraft lessor to the Nigerian market after nearly 20 years. This comeback has resulted in a dry lease being offered to a local carrier at a rate three times cheaper than previous options. According to Keyamo, the breakthrough stems from recent reforms and new practice directions under the Cape Town Convention, which have boosted investor confidence.
The Minister predicted that this would naturally lead to reduced fares. “With cheaper dry leases coming in, more airlines will have access to aircraft. More aircraft automatically mean stronger competition. And competition is what brings prices down in any free economy,” he said. He added that passengers should begin to feel the impact of increased fleet capacity within the next few months to a year.
On the issue of multiple taxes and charges—recently flagged by ECOWAS—Keyamo confirmed that Nigeria had received a regional advisory urging relief for operators. However, he noted that taxation matters fall outside the jurisdiction of his ministry.
“I cannot wake up one morning and abolish taxes. These revenues go into the Federation Account. The Finance Minister, the tax authorities, and other stakeholders must all be at the table,” he explained.
Keyamo said he had already escalated the concerns of operators to the relevant authorities and that discussions were ongoing. He added that while the government is committed to addressing industry challenges, it must also protect the revenue required to maintain critical aviation infrastructure.
