AFRICA

NAMA Suspends Hike in Navigational Charges Amid Economic Concerns

The Nigerian Airspace Management Agency (NAMA) has suspended its planned increase in the navigational charges three days after it was announced.

The agency said it suspended the planned increase in the charges, which was expected to kick-off on September 1, 2024, but the Minister of Aviation and Aeronautical Development, Festus Keyamo intervened and directed the agency to suspend the decision.

In a statement signed by the Director, Public Affairs and Consumer Protection, NAMA, Abdullahi Musa, the agency stated, “In response to the directive from the Honorable Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, the Nigerian Airspace Management Agency has suspended its earlier announced increase in navigational charges. This decision follows the Minister’s recognition of the current economic challenges faced by Nigerians.

“The Minister emphasised the need for further consultation before implementing any changes, highlighting the importance of being sensitive to the plight of Nigerians amidst these economic challenges.”

The agency also stated that the decision followed “the keynote address by the Managing Director of NAMA, Farouk Ahmed Umar, at the League of Airports and Aviation Correspondents Annual Conference held in Lagos on July 26, 2024. The theme of the conference was “Aviation Survivability amidst a Challenging Macro-Economic Environment.”

In his address, Farouk had highlighted the significant economic pressure faced by the aviation industry, exacerbated by global economic volatility, fuel price hikes, and currency instability. He had outlined strategies for survival and growth, including operational efficiency, embracing innovation and technology, strengthening infrastructure, and fostering collaboration and partnerships.

Farouk had also discussed the financial challenges NAMA faces, noting that the agency relies on statutory fees and charges for managing the airspace. The Nigerian airspace management agency had proposed an increase in its fees and charges to sustain its operations and ensure the safety and efficiency of Nigeria’s airspace.

The new unit rate/minimum charge for en-route was set to increase to N18,000 from N2,000 per flight while the unit rate/minimum charge for terminal navigation charge(TCN domestic) were to rise to N54,000 from N6,000 per flight with effect from the 1st of September.

“The suspension of the fee increase is a testament to the government’s responsiveness to public concerns and its commitment to balancing economic sustainability with the needs of its citizens,” the statement added.

Chinedu Eze