The Minister of Aviation, Mr. Festus Keyamo has overruled the decision of the Nigerian Airspace Management Agency (NAMA) to raise en-route navigational charges from N6,000 to N18,000 and N54,000 per flight
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The Minister has directed the agency to suspend its earlier announced increase in navigational charges. This decision follows the Minister’s recognition of the current economic challenges faced by Nigerians.
The Minister emphasized the need for further consultation before implementing any changes, highlighting the importance of being sensitive to the plight of Nigerians amidst these economic challenges.
This decision follows the keynote address by Engr. Farouk Ahmed Umar, Managing Director/CE of NAMA, at the League of Airports and Aviation Correspondents Annual Conference held in Lagos on July 26, 2024. The conference theme was “Aviation Survivability amidst a Challenging Macro-Economic Environment.”
Umar had said the agency relies on statutory fees to manage the airspace (remember that aviation takes place only in the air). These funds are generated from services we provide to the flying community, without these funds NAMA can’t discharge its responsibility of ensuring the safety of our airspace effectively. We majorly generate these funds through the airline companies.”
“The largest percentage of NAMA’s revenue comes from en-route navigation charges (domestic and international flights) and terminal navigation charges (domestic and international flights). While international flights pay in US dollars, domestic flights pay in the Nigerian currency.”
In his address, Engr. Farouk highlighted the significant economic pressures the aviation industry faces, exacerbated by global economic volatility, fuel price hikes, and currency instability. He outlined strategies for survival and growth, including operational efficiency, embracing innovation and technology, strengthening infrastructure, and fostering collaboration and partnerships.
Umar also discussed the financial challenges NAMA faces, noting that the agency relies on statutory fees for managing the airspace. The Nigerian Airspace management agency had proposed an increase in its fees to sustain its operations and ensure the safety and efficiency of Nigeria’s airspace.
“The new unit rate/minimum charge for en-route was set to increase to 18,000 Naira from 2,000 Naira per flight while the unit rate/minimum charge for terminal navigation charge(TCN domestic) was to rise to 54,000 Naira from 6,000 Naira per flight with effect from the 1st of September.
Director, of Public Affairs and Consumer Protection of NAMA, Abdullahi Musa in a statement said NAMA would continue to engage the airlines, who have been responding to the prevailing economic situation since 2008 without taking NAMA into consideration, which is supposed to be a cost recovery agency in line with global practices.
The directive from the Minister and the subsequent suspension of the planned increase, he said underscored the government’s commitment to addressing the concerns of Nigerian citizens and stakeholders in the aviation sector.
He noted that the suspension of the fee increase is a testament to the government’s responsiveness to public concerns and its commitment to balancing economic sustainability with the needs of its citizens.
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