Air Fare Raise: NAMA suspends planned 800% navigational charge increase

by Samson Echenim

The Nigerian Airspace Management Agency (NAMA) has suspended its earlier announced increase in navigational charges, which heightened fears of possible air fares raise at the weekend.

NAMA had on Friday announced plans to increase the unit rate/minimum charge for en-route air navigation services from N2,000 to N18,000 and the the unit rate/minimum charge for terminal navigation charge (TCN domestic) from N6,000 to N54,000 per flight.

The Managing Director of NAMA, Umar Farouk also disclosed at an aviation forum on Friday that the agency had increased the extension of service hours to airlines with consequent charge increase from N50,000 to N450,000, representing a whopping 800% increase. He had claimed that the increase was inevitable and had been reached at a meeting with airline operators. He maintained that the new rates would help the agency to recover the cost of diesel and other logistics during the extension period, adding that the new charges would take effect from September 1, 2024.

Minister of Aviation and Aerospace, Festus Keyamo

 

 

“The Nigerian Airspace Management Agency relies on statutory fees for the management of the airspace. These funds are generated from services we provide to the flying community. Without these funds, NAMA can’t discharge its responsibility of ensuring the safety of our airspace effectively. We mainly generate these funds through the airline companies,” Farouk said.

 

Nigerians had immediately condemned the increase stressing that it could lead to another increase of air fares. The airline operators association was mum on the issue.

However, in a statement emailed to The Nigerian Economy on Monday, NAMA said its decision to suspend the increased charges followed the Minister of Aviation and Aerospace Development, Festus Keyamo’s recognition of the current economic challenges faced by Nigerians.

NAMA MD, Engr Ahmed Farouk

According the statement which was signed by Abdullahi Musa, Director, Public Affairs and Consumer Protection, NAMA, the Aviation minister emphasized the need for further consultation before implementing any changes, highlighting the importance of being sensitive to the plight of Nigerians amidst these economic challenges.

Musa said the agency would continue to engage the airlines, who have been responding to the prevailing economic situation since 2008 without taking NAMA into consideration, which is supposed to be a cost recovery agency in line with global practices.

“The directive from the Honorable Minister and the subsequent suspension of the planned increase underscore the government’s commitment to addressing the concerns of Nigerian citizens and stakeholders in the aviation sector.

“The suspension of the fee increase is a testament to the government’s responsiveness to public concerns and its commitment to balancing economic sustainability with the needs of its citizens,” Musa stated.

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The Nigerian Economy

The Economy is an online newspaper focusing on delivery of top-notch economic, financial and business intelligence reports for economic development. It is published by Samhapp Integrated Services Ltd., 1, Ojogiwa Street (1st floor) Off Idumagbo Avenue, Lagos Island, Lagos State, Nigeria, West Africa

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