Nigeria’s Minister of Aviation and Aerospace Development, Festus Keyamo, has declared that the Federal Government has no legal powers to regulate or fix airfares in the country, emphasising that the country’s aviation industry has operated under a fully deregulated framework for several decades.
Addressing State House correspondents after the Federal Executive Council meeting in Abuja, Keyamo explained that the deregulation of the aviation industry dates back to the Ibrahim Babangida administration, when private airlines were granted the freedom to operate and determine their own fare regimes.
He noted that although the Senate had invited him to discuss the recent surge in airfares, he was unable to appear due to his commitments at the Council meeting.
The Minister disclosed that he instructed the Nigerian Civil Aviation Authority (NCAA) and domestic airlines to appear before the Senate Committee in his absence.
Keyamo stressed that while the government cannot dictate prices in a free market, it remains actively engaged with airlines to address the underlying factors driving high fares.
“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,” he said.
The Minister emphasised that operators have repeatedly raised concerns about access to aircraft, unfavourable lease terms, the absence of local maintenance facilities, and the pressure to source large amounts of foreign exchange to conduct mandatory C-checks abroad, factors that all feed into ticket pricing.
He disclosed that a significant milestone was achieved under the Tinubu administration when, for the first time in nearly twenty years, a major international aircraft lessor returned to the Nigerian market and granted a dry-lease arrangement to a domestic airline at a cost less than one-third of earlier industry rates.
Keyamo attributed the development to reforms introduced by the Federal Government, including new practice directions on the Cape Town Convention, which protect the rights of international lessors and boost confidence in Nigeria’s aviation environment.
“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.
The Minister projected that over the next few months to a year, Nigerians should begin to feel the impact of increased aircraft availability, improved competition, and lower operating costs.
On the issue of multiple taxes and charges on airlines, an issue that has drawn the attention of ECOWAS, the Minister of Aviation and Aerospace Development confirmed that Nigeria had received a regional advisory urging relief for operators.
He clarified that ECOWAS lacks the authority to compel member states on taxation matters, adding that aviation taxes fall under the jurisdiction of federal revenue and financial authorities, not 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,” the Minister said.
Keyamo disclosed that he had already escalated airlines’ tax concerns to the relevant bodies, adding that both the Minister of Finance and other economic authorities were working collaboratively to review the issues.
He maintained that while the government must support operators, it must also sustain the revenue necessary to maintain critical aviation infrastructure nationwide.