Nigeria’s Minister of Aviation and Aerospace Development, Festus Keyamo, has clarified that the Federal Government has no legal authority to regulate or fix airfares, reaffirming that the nation’s aviation sector has operated under a fully deregulated framework since the Babangida era.
Addressing journalists after the Federal Executive Council meeting, Keyamo explained that while the Senate invited him to address the surge in domestic ticket prices, he was unable to attend and instead directed the NCAA and domestic airlines to honour the summons.
He stated that although government cannot dictate prices in a free market, it continues to engage operators on the challenges driving high fares. Airlines, he said, face limited access to aircraft, harsh lease conditions, the absence of local maintenance facilities, and significant forex requirements for overseas C-checks, all of which influence fare structures.
Keyamo highlighted a major breakthrough under the Tinubu administration, where an international lessor returned to the Nigerian market after nearly two decades, offering a dry lease to a local carrier at a rate three times cheaper than previous industry benchmarks. He noted that more affordable aircraft leases will expand airline fleets, stimulate stronger competition, and ultimately push fares down.
On concerns about multiple taxes and charges raised by ECOWAS, Keyamo stressed that aviation taxation lies outside his ministry’s jurisdiction and cannot be abolished unilaterally. He said the matter has been escalated to the Finance Ministry and relevant fiscal authorities, who are working to review operators’ concerns while balancing the need to sustain national revenue for critical infrastructure. The Minister expressed optimism that in the coming months, Nigerians will begin to feel the impact of improved aircraft availability, enhanced competition, and a more stable operating environment.
