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• Says sector deregulated, assures competition will lower prices
• FEC approves upgrades to navigational and communication systems
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From Juliana Taiwo-Obaloye, Abuja
Minister of Aviation and Aerospace Development Festus Keyamo has explained that the Federal Government, despite the soaring cost of domestic air travel in the country, simply does not have the power to cap or fix airline ticket prices under the country’s deregulated aviation regime.
Speaking to State House Correspondents after Wednesday’s Federal Executive Council (FEC) meeting in Abuja, presided over by President Bola Tinubu, the minister stressed that Nigeria’s aviation sector has operated within a deregulated framework for decades—since the era of former military ruler Ibrahim Babangida, when private airlines first gained freedom to determine their 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,” Keyamo said.
He regretted that his invitation to appear before the Senate for discussions on rising airfare costs clashed with the FEC meeting. The minister explained that the Nigerian Civil Aviation Authority (NCAA) and domestic carriers attended the session on his behalf.
The minister highlighted several cost pressures airlines face, including scarce availability of aircraft, expensive lease agreements, insufficient local maintenance infrastructure, and the need to spend foreign currency on mandatory safety checks abroad—realities that inevitably push fares upward.
A key positive development, according to Keyamo, is the return of a major international aircraft lessor to Nigeria’s market after nearly two decades. This, he added, has enabled a local airline to secure a dry lease at a rate one-third of earlier offers, thanks to reforms under the Cape Town Convention, which have strengthened investor confidence.
“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,” Keyamo said, adding that passengers can expect to see fare relief in the coming months as new planes enter service.
On the issue of multiple taxes and fees recently spotlighted by ECOWAS as a barrier for airlines, Keyamo acknowledged receiving regional advice urging relief for operators but emphasised that tax policy lies beyond his ministry’s remit.
“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.
He revealed that he has formally raised these concerns with fiscal authorities and that talks are ongoing, stressing the government’s commitment to balancing industry support with ensuring funding for vital aviation infrastructure.
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Meanwhile, the minister revealed that the Federal Government has approved significant upgrades to navigational and communication systems at Nigeria’s airports, alongside initiatives designed to boost air safety and passenger convenience nationwide.
Keyamo confirmed the extension of the maintenance contract with CCECC for the new terminal at Aminu Kano International Airport.
The planned enhancements include installing Advanced Surface Movement Guidance and Control Systems (A-SMGCS) at Lagos and Abuja airports to detect runway obstructions, constructing modular air traffic control towers at eight airports, and upgrading VHF radio communication across nine airports, including Lagos, Port Harcourt, Ilorin, Abuja, Kano, Maiduguri, Sokoto and Wukari.
Keyamo explained, “Another one is infrastructure upgrade that has to do with navigation again, approval for the award of contract for the installation of aeronautical frequency spectrum monitor and interference detection solution that, of course, improves the communication between the ground crew, the people at the tower, and the aircrafts that are approaching or taking off, and they normally guide them.”
He emphasised, “That is the system that guides them to approach the runway communication. So this has to do with not just the detection system, but the communication system between the tower and the pilots. We are getting new equipment, upgrade those equipments.”
On the communication system upgrades, he noted, “In that respect, the other one is the procurement, replacement and upgrade of the remote control, air, ground communication, total VHF radio system in nine sites, nine airports.”
He said the Council also gave the green light for the installation of biometric-enabled electronic gates at all international airports to accelerate passenger clearance processes.
Keyamo stated, “And so we have approval for the provision of biometric enabled electronic gates, which is called the popular e-gates to fast track passenger solution, Fast Track solution at the nation’s international airports, all our international airports.”
The minister pointed out that these improvements align with President Tinubu’s directive to modernise the nation’s aviation infrastructure and ensure safer, more efficient air travel across Nigeria.
