Why We Can’t Control Rising Airfare – Aviation Minister Keyamo

Festus Keyamo SAN, the Minister of Aviation and Aerospace Development, has defended the Federal Government against the public outcry over the rising cost of airfare.

Keyamo stated that the Federal Government cannot fix domestic airfares because the market is deregulated, but promised that fresh aircraft leases and tougher competition will force prices down.

While speaking with journalists after Wednesday’s Federal Executive Council meeting at the Aso Rock Villa, Abuja, the minister said that aviation sector has operated on free market since liberalisation began in the Babangida era, and the government has “no legal powers” to set ticket rates for private airlines.

Keyamo explained that airfare prices can only be control when there’s a free market and healthy competition among aviation investors.

He said, “The industries had long been deregulated. The moment Babangida said airlines can come in, the government has no power to fix the market for private enterprise, including the aviation sector that doesn not mean we’re not engaging them.

“The only thing that can drive prices down in a free economy is competition. So in the next few months, or within the next one year, I expect that we will have more aircraft to service more routes and force down the prices by pure competition. We are going to do that, I assure you.”

“You remember that we have passed the practice direction regarding the Cape Town Convention, and for the first time in the last three, four weeks, one of our local airlines now began to access dry lease.

“The dry lease was three times lesser than the price they normally get, and it was given by one of the best and the biggest lessors in the world, Aercap, after abandoning Nigeria for nearly two decades,” he said.

The Aviation Minister also spoke about the taxation system saying, “The second one is on the issue of the taxes. We have received the communication,” he noted, explaining that “ECOWAS still do not have that jurisdiction to force us…Now the meeting goes beyond aviation. All the tax we collect, they go into the Federation Account.”

ECOWAS announced, effective January 1, 2026, air ticket taxes across West Africa will be abolished, to slash airfares prices by over 20 per cent as part of a regional policy aimed at making air travel more affordable and stimulating economic activities.

However, the Nigerian Air Traffic Controllers’ Association (NATCA) has formally petitioned the National Executive Council (NEC) of the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN), accusing the Federal Airports Authority of Nigeria (FAAN) of persistent breaches of the union’s constitutional financial regulations.

Keyamo further stated that consultations have begun with fiscal authorities, adding that the process will be holistic.

“In fact, Hadiza Bala Usman (Special Adviser to the President on Policy Coordination) has been very, very good on this, to rally us to one table to look at it, so we are looking at it holistically.

“I cannot wake up one morning and abolish taxes. The Finance Minister, the tax authorities and other stakeholders must all be at the table,” he explained.

The Minister also announced a portfolio of aviation projects approved by the Council, beginning with continued maintenance at the Chinese-built terminal in Kano.

“We sought approval for award of contracts for the continuous maintenance and technical support services at the Aminu Kano International Airport, Kano,” he said, explaining that CCECC, which constructed the new terminals in Abuja, Lagos, Kano and Port Harcourt, was contracted from the start to maintain chillers, carousels, lifts and other systems while training Nigerians to take over.

“The first period of maintenance expired, and then we sought for extension of two-year maintenance by CCECC. That is the first one which was graciously approved,” he stated.

The Council also approved high-end navigation and surveillance upgrades to tighten safety in Nigeria’s airspace, Keyamo revealed.

“The award of contract for the procurement, installation and commissioning of what we call the Advanced Surface Movement Guidance and Control System, and ongoing installations of surface-movement radar in Lagos and Abuja airports.

“This type of equipment will not only detect anything moving on the surface of the runway; it will detect the exact spot it is, and advise approaching aircraft,” he noted.

According to the Minister, a modular air-traffic-control tower cabin with a 360-degree view will be installed at eight airports.