Nigeria’s Aviation and Aerospace Development Minister, Festus Keyamo, has said the Federal Government has no authority to set or cap the prices of domestic air tickets, insisting that the country’s aviation sector operates under a fully deregulated framework.
Speaking after Wednesday’s Federal Executive Council meeting chaired by President Bola Tinubu, Keyamo explained that airlines in Nigeria have been free to determine their own fares since the deregulation of the sector during the Ibrahim Babangida era.
“Government has absolutely no powers to fix prices for private enterprises. That is what deregulation means,” he said. “But that does not mean we are leaving the airlines without engagement.”
Keyamo noted that although he was invited to appear before the Senate to discuss rising airfares, officials from the Nigerian Civil Aviation Authority and major domestic airlines attended the session on his behalf.
The minister said carriers are operating in a difficult environment marked by limited aircraft availability, expensive leasing costs, and the lack of local maintenance facilities all of which force operators to rely on foreign currency for mandatory safety checks abroad. These pressures, he said, have driven up domestic ticket prices.
He announced that a major international aircraft lessor has recently returned to the Nigerian market after nearly two decades, a development that has already allowed a local airline to secure a dry lease at a far lower rate.
“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. He expressed optimism that fares would ease once new aircraft are deployed.
On the issue of multiple taxes and charges imposed on airlines, Keyamo acknowledged that regional bodies, including ECOWAS, have advised Nigeria to reduce the financial burden on operators. However, he noted that taxation falls outside his ministry’s mandate.
“I cannot wake up one morning and abolish taxes. These revenues go into the Federation Account. The Finance Minister, the tax authorities, and other stakeholders must all be involved,” he said, adding that discussions with the relevant agencies are ongoing.
Keyamo also highlighted several new infrastructure projects approved by the Federal Executive Council. These include upgrades to navigational and communication systems across major airports, construction of modular air traffic control towers, improved radio communication facilities, and the installation of biometric electronic gates at international airports to speed up passenger processing.
He said the initiatives form part of President Tinubu’s broader plan to modernise the aviation sector, improve safety standards, and enhance passenger experience nationwide.
Despite the current challenge of high ticket prices, Keyamo maintained that market forces and ongoing reforms would eventually bring relief to travellers.