The Federal Government has clarified that it lacks the legal authority to regulate or fix domestic airfares in Nigeria, stressing that the aviation sector has been fully deregulated for decades.
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Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, made the remarks on Wednesday while briefing State House correspondents after the Federal Executive Council (FEC) meeting presided over by President Bola Tinubu at the Council Chambers, Presidential Villa, Abuja.
Keyamo explained that deregulation dates back to the administration of former military President Ibrahim Babangida, which allowed private airlines to operate freely and set their own ticket prices. He added that Nigeria’s aviation sector remains one of the most competitive and robust in Africa.
The Minister confirmed he had been invited by the Senate to address concerns over rising airfares but could not attend due to the FEC engagement. He said he instructed the Nigerian Civil Aviation Authority (NCAA) and domestic airlines to honour the invitation on his behalf.
“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.
He highlighted that airlines continue to grapple with several cost drivers, including limited access to aircraft, unfavourable lease arrangements, lack of local maintenance facilities, and the persistent need for foreign exchange to conduct mandatory C-checks abroad, which ultimately influence ticket pricing.
A major development under the Tinubu administration, the Minister noted, is the return of a significant international aircraft lessor to Nigeria after nearly two decades, offering a dry lease to a local carrier at a rate three times cheaper than previous deals.
“With cheaper dry leases coming in, more airlines will have access to aircraft. More aircraft automatically means stronger competition. And competition is what brings prices down in any free economy,” he said, assuring passengers that the effects of increased fleet capacity will be felt within months to a year.
On the issue of multiple taxes and charges, recently highlighted by ECOWAS, Keyamo said the matter falls 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.
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