Keyamo blames high airfares on plane scarcity, says FG engaging airline operators

Festus Keyamo, minister of aviation and aerospace development, has blamed the current high airfares on domestic routes on aircraft scarcity, and insufficient maintenance infrastructure.

The senate had summoned Keyamo, and key industry stakeholders for an urgent meeting over the sharp rise in domestic airfares.

The resolution followed a motion raised by Abdulfatai Buhari, senator representing Oyo north, who warned that the escalating prices threaten national mobility and could disrupt travel ahead of the festive season.

Speaking with journalists after the federal executive council (FEC) meeting on Wednesday, Keyamo said the federal government has no power to regulate or cap ticket prices charged by airlines.

He said the aviation sector has operated under a deregulated regime since the era of former military ruler Ibrahim Babangida, which allows private airlines to set their fares.

“Government has absolutely no powers to fix prices for private enterprises. That is what deregulation means. But that does not mean we are leaving the airlines without engagement,” he said.

The minister said he was unable to honour the senate’s invitation over rising airfare due to the FEC meeting, adding that the Nigerian Civil Aviation Authority (NCAA) and airline operators represented him at the session.

He said several cost drivers, such as aircraft scarcity, expensive leasing agreements, limited local maintenance infrastructure, and foreign exchange (FX) spending for overseas safety checks, continue to push fares upward.

A key positive development, Keyamo said, is the return of an international aircraft lessor to the Nigerian market after nearly two decades, enabling a local carrier to secure a dry lease at one-third of previous offers.

“With cheaper dry leases coming in, more airlines will have access to aircraft. More aircraft automatically means stronger competition. And competition is what brings prices down in any free economy,” he said.

The minister expressed optimism that passengers will see fare relief as new planes enter service.

On multiple taxes and fees recently spotlighted by ECOWAS as a barrier for airlines, Keyamo acknowledged receiving regional advice urging relief for operators but stated that tax policy lies beyond his ministry’s remit.

He said he has formally communicated the concerns to fiscal authorities, noting that discussions are ongoing.

The minister reaffirmed the government’s commitment to supporting the aviation sector while safeguarding funding for essential infrastructure.

‘FG HAS APPROVED UPGRADES TO AIRPORT INFRASTRUCTURE NATIONWIDE’

Keyamo also announced that the federal government has approved upgrades to airport infrastructure nationwide, including improved navigation and communication systems.

He confirmed the extension of the maintenance contract with CCECC for the new terminal at Aminu Kano International Airport.

The minister said the approved projects are the installation of advanced surface movement guidance and control systems (A-SMGCS) in Lagos and Abuja to detect runway obstructions, modular control towers in eight airports, and VHF radio communication upgrades in nine airports, including Lagos, Port Harcourt, Ilorin, Abuja, Kano, Maiduguri, and Sokoto.

Keyamo said the council also gave the green light for the installation of biometric-enabled electronic gates at all international airports to accelerate passenger clearance processes.

“We have approval for the provision of biometric-enabled electronic gates, which is called the popular e-gates to fast-track passenger solution at the nation’s international airports, all our international airports,” he said.

The minister said the upgrades reflect President Tinubu’s directive to modernise Nigeria’s aviation infrastructure and enhance the safety and efficiency of air travel nationwide.(The Cable)