Abuja, Nigeria – As Nigerian air travelers voice mounting frustration over domestic flight tickets surging to as high as N600,000 ($350) for a one-hour Abuja-Lagos journey, Aviation and Aerospace Development Minister Festus Keyamo on Wednesday, December 10, 2025, firmly restated that the federal government lacks the legal muscle to cap or regulate fares in a sector deregulated for over three decades. Speaking to State House correspondents after a Federal Executive Council (FEC) meeting chaired by President Bola Tinubu at the Presidential Villa, Keyamo emphasized that while deregulation empowers private airlines to set market-driven prices, the administration is actively tackling root causes like aircraft scarcity and punitive leasing costs to foster natural price relief through competition.
The outcry over airfares has reached fever pitch, exacerbated by the yuletide rush and broader economic pressures including a naira devaluation that has inflated operational costs. Travelers, business executives, and even lawmakers have decried the hikes, with a recent Senate motion highlighting how a Lagos-Abuja economy ticket now averages N400,000-N600,000—up 150% from pre-festive norms of around N120,000—rendering air travel a luxury for many middle-class Nigerians. Social media platforms are awash with complaints, from stranded families missing holiday reunions to professionals opting for grueling 10-hour bus rides to evade “outrageous” prices. The National Association of Nigeria Travel Agencies (NANTA) has echoed these sentiments, warning that unchecked hikes could stifle tourism and economic mobility in Africa’s most populous nation, where domestic aviation handles over 16 million passengers annually despite chronic capacity constraints.
Keyamo, a Senior Advocate of Nigeria (SAN), traced the sector’s hands-off pricing policy to the Ibrahim Babangida military regime in the late 1980s and early 1990s, when liberalization invited private carriers to challenge the state monopoly of the defunct Nigeria Airways. “Government has absolutely no powers to fix prices for private enterprises. That is what deregulation means,” he asserted, underscoring that the Nigerian Civil Aviation Authority (NCAA) oversees safety and economic viability but not fare controls. He noted his inability to honor a Senate summons on the issue due to FEC duties, instead dispatching NCAA officials and airline reps to brief lawmakers, a move that has drawn mixed reactions from senators decrying the government’s perceived inaction.
Yet, Keyamo was quick to affirm that deregulation does not equate to disengagement. He outlined a multi-pronged strategy addressing “significant cost drivers” plaguing operators: acute aircraft shortages, with Nigeria’s fleet averaging 20 years old and many planes grounded for maintenance; exorbitant wet-lease deals that inflate costs by 30-50%; the absence of local C-check facilities, forcing carriers to burn millions in foreign exchange for overseas overhauls; and volatile jet fuel prices, which consume 40% of operating budgets amid naira volatility. These factors create a vicious cycle where limited capacity—exacerbated by over 160 airline failures since deregulation—drives up demand-supply imbalances, allowing carriers like Air Peace, Arik, and Overland to command premium prices.
A beacon of hope, Keyamo spotlighted a “major breakthrough” under the Tinubu administration: the return of a prominent international lessor after nearly 20 years of absence, culminating in a dry-lease deal for a local carrier at one-third the prior rate. This pact stems from rigorous reforms aligning Nigeria with the Cape Town Convention—a 2006 UNIDROIT treaty on aircraft financing—which slashed judicial delays and boosted investor confidence. The minister forecasted tangible relief: “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.” Analysts estimate dry leasing could save operators N26.6 billion annually, injecting 10-15 new planes into the fleet by mid-2026 and potentially trimming fares by 20-30% on high-demand routes.
Turning to taxation—a perennial albatross—Keyamo confirmed receipt of an ECOWAS advisory urging member states to alleviate burdensome levies on airlines, amid complaints that West Africa’s air travel costs 12-15% more than global averages due to fragmented fees. The regional body has adopted measures mandating the abolition of non-ICAO-compliant taxes and a 25% slash in passenger service and security charges effective January 1, 2026, projecting a 40% intra-regional traffic boost. Nigeria, facing over 20 such charges, has funneled N500 billion into federal coffers annually from aviation taxes, funding infrastructure like runway expansions.
“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,” Keyamo cautioned, revealing he has escalated grievances to Finance Minister Wale Edun and the Federal Inland Revenue Service (FIRS). This comes as the looming 2026 Tax Reforms Act threatens to impose 7.5% VAT on tickets and duties on spares—contravening ICAO treaties and ECOWAS pacts—potentially hiking fares another 10-15% and risking airline insolvencies.
Broader context reveals Nigeria’s aviation woes as symptomatic of underinvestment: the sector contributes just 0.5% to GDP despite a 9% passenger uptick in early 2025. Chronic issues like flight delays (over 50% of departures) and baggage mishandling have fueled hundreds of complaints, eroding trust. The International Air Transport Association (IATA) advocates holistic cuts, projecting $1 trillion in airline revenues continent-wide by 2025 if barriers lift.
Keyamo’s assurances hinge on execution: as ECOWAS monitors compliance, travelers await the “months to a year” timeline for cheaper leases to materialize. For now, the debate underscores a tension between fiscal imperatives and consumer relief in a deregulated market where innovation, not intervention, is the prescribed cure. With reforms underway, 2026 could herald blue skies, but only if promises translate to pockets eased.
