Nigeria Moves to Cut Airfares Amid Rising Costs and Airline Disputes Government engages international carriers and reviews taxes to ease travel burden

The Nigerian government has pledged to tackle the soaring cost of air travel, both domestically and internationally, in a move aimed at easing the financial burden on travellers and improving accessibility. The Minister of Aviation and Aerospace Development, Festus Keyamo, outlined these efforts during a ministerial press briefing in Abuja on Thursday.

Keyamo identified several factors driving up ticket prices, including limited access to affordable aircraft leasing for Nigerian airlines, the lingering impact of trapped foreign airline funds, and steep airport taxes. He assured stakeholders that significant measures were being taken to address these challenges.

Aircraft Leasing and Domestic Ticket Costs

A major hurdle facing Nigeria’s aviation sector is the difficulty in leasing aircraft at competitive rates, forcing domestic airlines to resort to costly lease agreements or outright purchases, costs which are inevitably passed on to passengers.

“We have domestic tickets, and we have international tickets. I talked about domestic tickets and the fact that we don’t have access to lease aircraft at a very cheap cost,” Keyamo said. “We will only go for the very expensive option of leasing aircraft or buying aircraft. We are addressing that. We will see the results very soon with the Cape Town Convention and the Dublin Conference we are going to. The deals are coming in, so we will see the results then.”

Foreign Airlines and International Ticket Pricing

Keyamo also disclosed how foreign airlines have deliberately inflated ticket prices for Nigerian travellers due to concerns over trapped funds and currency depreciation. According to him, international airlines had structured their pricing models to prioritise countries where they could repatriate funds swiftly, leaving Nigerian passengers with disproportionately high fares.

“We called international airlines and asked what they used to do. They said if you want to buy international tickets, you will see business class Z, grade J, different grades, but it’s all the same. One can be ₦2 million cheaper than the other. Those ones, they opened it for countries they knew that once they sold the ticket, they could get their money immediately. But they now opened only the high fare for Nigerian passengers since the last three to four years,” he revealed.

He explained that airlines had priced Nigerian tickets higher to hedge against possible currency devaluation, sometimes doubling or tripling fares compared to neighbouring Ghana.

“They said because they were taking into account inflationary rates of the money that will be trapped, they don’t know where they will get the money back, so they were building on top of it. Instead of selling a ticket for ₦2 million or ₦3 million, they will sell it for ₦7 million. Whereas Ghana will sell it for that lower price. This was an issue of policy,” Keyamo added.

To address this, the government has been actively engaging with international airlines to ensure ticket prices reflect the recent clearance of the trapped funds backlog. President Bola Tinubu had taken decisive steps to settle the outstanding airline funds, removing a key justification for high fares.

“President Bola Tinubu, being very smart on this, cleared that first. And so we called them and said, look, you have been enjoying this high price because Nigerians were paying. But now we have cleared the backlog, so you cannot continue to open only the high-fare tickets to Nigerian passengers,” Keyamo stated.

High Airport Taxes Under Review

Another significant contributor to high ticket costs, Keyamo noted, is the elevated taxation imposed on airlines operating in Nigeria, making the country one of the most expensive aviation markets in Africa.

“So that discussion is going on now. The Nigerian Civil Aviation Authority (NCAA) is championing that, and I think they held a parliament with them recently on that, with one or two other factors in terms of high taxation. Our airport, they say, is the highest in Africa in terms of taxes,” he said.

Keyamo acknowledged that reducing these taxes would require collaboration with the Ministry of Finance, as aviation authorities alone cannot make unilateral decisions on government-imposed levies.

“Nigerian Airspace Management Authority and the Federal Airports Authority of Nigeria are looking at them to see what we can do about it. Because it’s not my call. We have to talk to the Minister of Finance to do that. So, don’t look at the Aviation Minister alone. I’m not in charge of revenue. I have no right to say I will reduce revenue. The money is not my money,” he clarified.

He further noted that high airport taxes inevitably impact ticket pricing, as airlines factor in these costs and pass them on to passengers.

“The taxes imposed in our airports and navigation routes, they say, is one of the highest in Africa. And the airlines come here, they bill that too because they have to pay. And that trickles down to the passengers. So we will tackle that,” he assured.

The Road Ahead

While the government has taken steps to clear obstacles to fairer pricing, Keyamo stressed that ongoing dialogue with airlines and financial authorities would be crucial in ensuring tangible reductions in ticket prices. The planned reforms in aircraft leasing, fare structuring, and airport taxation signal a broader effort to make air travel more affordable for Nigerians. However, the ultimate success of these initiatives will depend on sustained policy implementation and cooperation across key aviation and financial sectors.

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