Key Points
- The aviation minister says airlines set prices under long-standing deregulation.
- He notes that key cost pressures push fares higher across Nigeria.
- He adds that the government still engages operators to ease known challenges.
The Federal Government has clarified why domestic airfares remain high despite constant complaints from travellers across Nigeria.
The Minister of Aviation and Aerospace Development, Festus Keyamo, said the government has no legal power to fix or reduce ticket prices because the aviation sector has operated under a deregulated framework for decades.
This update comes as flight users continue to lament rising travel costs. For context on other policy challenges in recent months, see our report on a recent federal policy explanation atthis ValidUpdates link.
Keyamo addressed State House correspondents after Wednesday’s Federal Executive Council meeting held at the Presidential Villa on December 10.
He explained that deregulation dates back to the era of former military president Ibrahim Babangida, noting that the policy gives private airline operators the full freedom to determine their pricing.
He stressed that the government cannot control fares under such a system. “Government has absolutely no powers to fix prices for private enterprises.
That is what deregulation means,” he said. He added that the ministry maintains active engagement with airlines even though it cannot impose price caps.
Airlines battle rising costs
Keyamo noted that operators face major cost drivers that continue to influence ticket prices. He listed limited access to aircraft, tough lease terms, lack of local maintenance centres, and the constant need for foreign exchange for mandatory C-checks abroad as key factors.
He said these recurring pressures leave airlines with little room to lower fares, as operating expenses keep rising.
His remarks align with earlier industry concerns captured in our report on the ongoing strain on local airlines, available atthis ValidUpdates link.
FG says engagement will continue
Although the government cannot regulate prices, Keyamo stated that the ministry is working with airlines to identify areas where operational burdens can be reduced.
He said such engagements aim to improve efficiency and ease cost pressures that affect both operators and travellers.
He assured that the discussions are active and ongoing. You can also read how similar challenges have shaped recent transport-sector updates in our earlier coverage on aviation cost reforms, available at this ValidUpdates link.
