Amid rising concern from the Senate over soaring domestic airfares, the Minister of Aviation and Aerospace Development, Festus Keyamo (SAN), has clarified that the Federal Government has no legal authority to regulate ticket prices. Speaking after Wednesday’s Federal Executive Council meeting, he noted that Nigeria’s aviation sector has been fully deregulated since the Babangida era to allow for unrestricted private sector participation.
Tribune Online’s checks revealed that the Senate on Tuesday summoned the Minister of Aviation, Festus Keyamo, alongside key industry stakeholders, for an urgent meeting following widespread public concern over the sharp rise in domestic airfares.
The Red Chamber resolution was on the heels of a motion raised at plenary by Senator representing Oyo North and Chairman Senate Committee on Aviation, Abdulfatai Buhari, who raised the alarm that the escalating prices threaten national mobility and could disrupt travel ahead of the festive season.
Keyamo, who acknowledged the summons by the Senate, however expressed regret that he could not appear because it coincided with the FEC meeting, but he instructed the Nigerian Civil Aviation Authority (NCAA) and domestic airlines to honour the invitation.
He said: “The government has absolutely no power to fix prices for private enterprises. That is what deregulation means. But that does not mean we are leaving the airlines without engagement.”
The Aviation Minister enumerated challenges facing local airline operators, 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.
He maintained that all these factors ultimately trigger the cost of airfares.
He, however, expressed the hope that with the return of a major international aircraft lessor to the Nigerian market after nearly two decades, granting a dry lease to a local carrier at a rate three times cheaper than previous offers, air commuters should expect lower prices in a competitive market.
“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.”
Responding to concerns over multiple taxes and charges recently highlighted by ECOWAS, Keyamo acknowledged that Nigeria had received a regional advisory calling for relief for operators. He, however, stressed that tax matters do not fall under his ministry’s mandate, noting that such decisions require broader consultation. “I can’t just wake up and abolish taxes. These revenues feed into the Federation Account, and any review must involve the Finance Minister, tax authorities, and other key stakeholders,” he said.
Source: Tribune
