The Nigerian Airspace Management Agency (NAMA) has announced its intention to significantly increase its en-route and terminal navigation charges, a move likely to result in a substantial rise in airfares. The proposed changes is set to take effect from September 1.
The Managing Director of NAMA, Umar Farouk, disclosed this during the League of Airports and Aviation Correspondents seminar themed “Aviation Survivability Amidst a Challenging Macro-Economic Environment,” which held in Lagos on Friday.
Engr. Farouk stated that it is set to raise its en-route navigational charges from N2,000 and N6,000 to N18,000 and N54,000 per flight. Also, the extension of service hours to airlines will be increased from N50,000 to N450,000.
According to Engr. Farouk, “NAMA charges NGN 50,000 for every hour that it extends services beyond the stipulated hours of service at aerodromes that do not have 24 hours service. In 2008, a liter of diesel was sold at around NGN113. Today, it is well over NGN1,400 Naira per liter, which represents over 1,000% increase. This makes the current charges unsustainable.”
“Currently, our unit rate for international flights charge for service provision is about $70. Domestic flights are charged 6,000 Naira. While NAMA recognizes the difficult economic environment aviation operates in Nigeria, it is equally a part of the ecosystem. It goes to the same market to procure equipment and other services like training.”
Farouk noted that while the prices of domestic one-way tickets have escalated to between N150,000 and N200,000 due to economic conditions, NAMA’s navigational charges have remained unchanged since 2008. Farouk highlighted that NAMA’s revenue primarily comes from these charges, and without sufficient funds, the agency cannot effectively manage airspace safety.
Farouk explained that in 2023, NAMA had significant expenditures, including N21 billion in personnel costs, over N12 billion in capital costs, and over N10 billion in overhead costs, all funded without federal budgetary allocation. Farouk cited ICAO Doc 9082, which recommends cost recovery for service provision, as a guideline for this adjustment.
Farouk concluded by highlighting the need for a balanced pricing structure that supports both NAMA and the airlines. He called for a symbiotic relationship between NAMA and the airline operators, emphasizing that both parties need each other to thrive in the challenging economic environment.
