The Federal Government has clarified that it has no legal powers to regulate or fix domestic airfares in Nigeria, despite rising complaints from travellers over high ticket prices.
Newsonspot reports that the Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, made this known on Wednesday while addressing State House correspondents after the Federal Executive Council (FEC) meeting chaired by President Bola Tinubu.
According to Keyamo, Nigeria’s aviation sector has been fully deregulated since the era of former military president Ibrahim Babangida, giving private airlines the freedom to determine their own ticket prices.
“Government has absolutely no powers to fix prices for private enterprises. That is what deregulation means,” he said. “But that does not mean we are leaving the airlines without engagement.”
The minister explained that several factors contribute to high fares, including limited access to aircraft, expensive lease terms, lack of local maintenance facilities, and the need for airlines to conduct mandatory C-checks abroad using foreign exchange.
Keyamo also announced a major breakthrough for the industry: the return of a prominent international aircraft lessor to Nigeria after nearly 20 years. This has enabled a local airline to secure a dry lease at a rate three times cheaper than what was previously obtainable.
He attributed this development to ongoing reforms and improved processes under the Cape Town Convention, which have restored investor confidence in the sector.
According to him, the cheaper lease rates will soon expand airline fleets, boost competition, and help reduce ticket prices.
“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 stated, adding that passengers should feel the impact in the coming months up to a year.
On the issue of multiple taxes and charges – recently highlighted by ECOWAS – Keyamo noted that taxation matters do not fall under his ministry.
“I cannot wake up one morning and abolish taxes. These revenues go into the Federation Account,” he explained, while assuring that he has forwarded operators’ concerns to the relevant authorities for ongoing discussions.
He emphasized that while government remains committed to easing aviation challenges, it must also ensure that essential infrastructure is adequately funded.
