The Minister of Aviation and Aerospace Development, Festus Keyamo, has said the federal government cannot fix or control airfares, stressing that pricing in Nigeria’s deregulated aviation market is driven entirely by market forces.
Keyamo made the remarks while addressing the recent surge in domestic flight fares, as captured in a video clip by Arise News.
He highlighted that the industry has been fully deregulated since the Babangida era, giving private airlines the freedom to set their own prices without government intervention.
“The industry has long been deregulated. The moment the federal government under Babangida said private airlines could come in and fly, they deregulated in terms of pricing and all, just like a free market.
“And so government has absolutely no powers to fix prices for private enterprise, including the aviation industry,” Keyamo explained.
Domestic ticket prices have more than doubled in recent days, sparking public outcry and prompting the Senate to summon the Minister and aviation regulators over the surge. Some fares have reportedly risen by over 300% on certain routes, raising concerns about affordability.
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Aviation expert and President of the Aircraft Owners and Pilots Association of Nigeria, Dr. Alex Nwuba, explained to Newsnight on Arise News that the recent surge in domestic ticket prices is a recurring seasonal pattern.
He said fares typically rise sharply every December because many travellers book late, pushing prices into the highest fare brackets. The increase, according to Nwuba, is a normal economic response: airlines adjust prices to balance demand and compensate for low fares during off-peak periods.
“It’s not new. Every year, it’s the same. Prices go up at Christmas time. The forces of economics at play. It is a demand-driven price increase, and it is compensation for low fares during the low season,” Nwuba said.
He explained that airline tickets are sold in a “bucket” system, where early buyers benefit from lower fares while prices rise as flights fill up. Many passengers waited until December instead of booking in October or earlier when fares were cheaper, which has contributed to the current steep increase.
Nwuba emphasised that the surge is driven by demand and reflects normal aviation economics rather than deliberate exploitation.
Structural and economic factors
Nwuba also pointed to structural challenges in Nigeria’s aviation sector that contribute to high ticket prices.
- With only about 0.02% of the population flying, he noted that the industry cannot achieve economies of scale, unlike Europe and the United States, where annual flight volumes exceed population sizes.
- Additional factors, including limited aircraft capacity, a weakened naira over time, fuel costs approximately 17% above global rates, and multiple aviation charges, further drive up operating expenses for airlines, he noted.
He emphasised that airlines are responding to seasonal demand and economic realities rather than exploiting passengers. Nwuba called for a comprehensive overhaul of Nigeria’s aviation system, including reforms to taxation and operational charges, to make flying more accessible and reduce steep fare spikes during peak periods.
