The Federal Government is taking steps to reduce the high cost of air tickets for both domestic and international travel while also working on improving airport security. Minister of Aviation and Aerospace Development, Festus Keyamo, made this known at a press briefing in Abuja on Thursday.
Keyamo highlighted key factors driving up ticket prices, including limited access to affordable aircraft leasing, high airport taxes and the issue of foreign airlines’ trapped funds. He explained that Nigerian airlines struggle to lease aircraft at competitive rates, forcing them to opt for costly leasing or outright purchases, which raises ticket prices. He assured that ongoing engagements, including the Cape Town Convention and the Dublin Conference, would help address this challenge.
On international fares, Keyamo revealed that foreign airlines had been overcharging Nigerian travelers due to uncertainties about when they could repatriate their earnings. He explained that airlines reserved lower priced ticket categories for countries where they could immediately convert their earnings to dollars, but for Nigerian passengers, only higher priced tickets were available. This was due to fears of currency depreciation affecting their trapped funds.
To address this, President Bola Tinubu ensured the clearance of the backlog of trapped funds. Keyamo stated that the government has since engaged airlines to ensure ticket prices for Nigerian travelers reflect this development. The Nigerian Civil Aviation Authority (NCAA) is now leading discussions with international airlines to adjust their pricing.
The Minister also acknowledged that high government-imposed taxes at Nigerian airports contribute to expensive tickets. However, he clarified that reducing these taxes would require collaboration with the Ministry of Finance, as he does not have the authority to lower government revenue. He assured that agencies like the Nigerian Airspace Management Authority and the Federal Airports Authority of Nigeria are reviewing the taxation structure to find possible solutions.
Keyamo emphasized that addressing these issues remains a priority, as the government aims to make air travel more affordable and ensure fair pricing for Nigerian passengers.