Nigerian Regulator Announces Significant Hike in Navigational Charges Causing Fears Of Increased Airfares

The Nigerian Airspace Management Agency (NAMA) has announced that it would increase en-route navigational charges from N2,000 for local operation; N6,000 for international service to N18,000 and N54,000 per flight respectively leading to fears of further fare increase.

The agency has also increased the extension of hours of service to airlines at sunset airports from N50,000 to 450,000 per extension to enable the agency recover the cost of diesel and other logistics during the period of extension.

Travellers, however, expressed fear that the increase could further lead to a rise in the cost of air travel both for domestic and international travel.

The hike in the navigational charges was made known on Friday, by the Managing Director of NAMA, Umar Ahmed Farouk, during a presentation at the League of Airports and Aviation Correspondent (LAAC) conference held in Lagos.

Earlier in the year, NAMA and the Nigerian Civil Aviation Authority (NCAA) held a strategic meeting with some airline operators under the aegis of Airline Operators of Nigeria (AON) to review what has been described as the outdated N16,000 Terminal Enroute Navigational Charges (TNS).

The meeting held in Abuja, was called at the instance of the NCAA and NAMA to get the understanding of the airlines on the review of the rate which the airlines admitted needed to be reviewed.

The implication of the action which NAMA took to cushion its high cost of airspace surveillance and security could further lead to astronomical increases in domestic airfares and by extension fares on international routes.

He noted that the industry required efficient pricing of products and services, stressing that it was a critical lever for enhancing affordability, driving competition, supporting infrastructural development, promoting sustainability, and improving operational efficiency.

He, however, noted that the price for services must reflect the value of these services.

He said, “NAMA relies on statutory fees for the management of the airspace (remember that aviation takes place only in the air). These funds are generated from services we provide to the flying community, without these funds NAMA can’t discharge its responsibility of ensuring the safety of our airspace effectively. We majorly generate these funds through the airline companies.”

Farouk further disclosed that for 2023, NAMA had an expenditure of about N21 billion in personnel costs alone, spent over N12 billion in capital costs and over N10 billion in overhead costs, adding that all these were to be (and were) funded from fees (no FGN budgetary allocation).

He said NAMA had been charging as low N11,000 per flight when a one-way domestic ticket cost only N16,000.

He said while ticket prices today have gone up astronomically to as high as between N150,000 to N200,000 for a one-way economy ticket owing to the prevailing economic circumstances, NAMA navigational charges have remained the same since June 2008.

Chinedu Eze 

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