The Minister of Aviation and Aerospace Development, Festus Keyamo, has criticized the Federal Competition and Consumer Protection Commission (FCCPC) for its public statement questioning Air Peace’s pricing practices.
Keyamo argued that the FCCPC should have first consulted with the Nigeria Civil Aviation Authority (NCAA) before making any public remarks about the airline’s pricing.
Keyamo stated this during an interview on The Morning Show on Arise News TV on Sunday, where he was asked about the FCCPC’s investigation into Air Peace’s alleged exorbitant airfare.
He emphasized that the NCAA, not the FCCPC, is responsible for regulating airline pricing and that the commission should have approached the authority for clarification before issuing its statement.
“I think it was a very careless statement – I say that with all apology – by the agency, making such a statement without consulting the core agency involved in regulation, which is the NCAA,” the Aviation Minister said.
He added, “They should have contacted the NCAA for them to look at the books, which we have been doing, so we would have given them facts.”
Addressing the core issue, Keyamo explained that the challenges faced by Nigerian airlines, including Air Peace, are not driven by price gouging, but rather by significant capacity limitations. These challenges include the difficulty in acquiring and servicing aircraft, along with the impact of fluctuating foreign exchange rates on the cost of operations.
The Minister pointed out that many Nigerian airlines rely on wet leasing aircraft, which incurs additional costs.
What you should know
Nairametrics reported that the Federal Competition and Consumer Protection Commission (FCCPC) launched an investigation into Air Peace, GTBank, and MTN over consumer complaints, focusing on allegations of exploitative pricing by Air Peace.
- The airline’s Chief Operating Officer, Oluwatoyin Olajide, clarified that rising operational costs, including N7 million for fuel and $4,000 for aircraft leasing per one-hour flight, justified the higher fares.
- In October 2024, Nigeria improved its compliance with the Cape Town Convention, marking a significant step toward better leasing conditions for local airlines.
- Aviation Minister Festus Keyamo is set to lead a delegation to Dublin in January 2025 to negotiate better aircraft leasing rates, which will help reduce operational costs and lower ticket prices for consumers.
However, a major hurdle remains the insurance requirement by the National Insurance Commission (NAICOM), which mandates local coverage for all risks, whereas international lessors require foreign-based insurance for dry-lease agreements.
Ongoing discussions aim to ease this restriction, which would help local airlines access more affordable leasing options.
