Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, has clarified that the Federal Government cannot legally regulate or fix domestic airfares, stressing that the sector has been fully deregulated since the Babangida administration.
Speaking after the Federal Executive Council (FEC) meeting in Abuja, Keyamo stated:
“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.”
The Minister acknowledged that high ticket prices are driven by significant structural costs for operators, including limited access to aircraft, unfavourable lease arrangements, lack of local maintenance facilities, and the persistent need for foreign exchange for mandatory C-checks abroad.
However, Keyamo announced a major positive development attributed to reforms under the Cape Town Convention: the return of a major international aircraft lessor after nearly two decades, granting a local carrier a dry lease at a rate three times cheaper than previous offers. He predicted this breakthrough will naturally lead to lower fares.
“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.”
Keyamo expects passengers to begin seeing the impact of increased fleet capacity within the next few months to a year.
On the issue of multiple taxes and charges, Keyamo confirmed his ministry had received a regional advisory from ECOWAS but noted that taxation falls outside his jurisdiction. He said: “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 at the table.” He confirmed that operators’ concerns have been escalated to the relevant authorities, and discussions are ongoing.
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