Keyamo blames soaring airfares on aircraft scarcity

Minister of Aviation and Aerospace Development, Festus Keyamo, has attributed the rise in domestic airfares primarily to aircraft scarcity, high dry leasing costs, and the lack of local maintenance facilities, clarifying that the Nigerian government cannot regulate or cap ticket prices due to the deregulated status of the sector.
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The Minister made this known after the Federal Executive Council (FEC) meeting on Wednesday, where he addressed a Senate resolution summoning him and aviation stakeholders over escalating ticket prices ahead of the festive season.
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Keyamo explained that the aviation sector has been deregulated since the Babangida administration, precluding the government from fixing or regulating ticket prices. He listed the factors responsible for the continuous upward increase in fares, including insufficient aircraft, high leasing costs, lack of local maintenance and limited infrastructure and high operating costs.
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Despite the challenges, Keyamo announced a strategy that could eventually lead to reduced fares. He stated that a major international aircraft lessor has returned to Nigeria after nearly 20 years of absence. This return has already allowed one airline to secure a dry lease at about one-third of the previous costs.
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The Minister stated that the influx of more aircraft will increase market competition, which should naturally drive ticket prices down. Keyamo also mentioned concerns raised by ECOWAS regarding multiple taxes and charges but clarified that tax policy does not fall under his ministry. He has forwarded these concerns to the relevant fiscal authorities for review.
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