Federal Govt Can’t Fix Airfares, Sector Fully Deregulated — Keyamo

…Says more planes coming, competition will crash ticket prices

The minister of Aviation and Aerospace Development, Festus Keyamo, on Wednesday declared that the federal government had no legal powers to regulate or fix airfares in the country, insisting that Nigeria’s aviation sector had been fully deregulated for decades.

Speaking to State House correspondents after the Federal Executive Council meeting at the Presidential Villa, Keyamo explained that the deregulation of the industry dated back to the administration of former military leader Ibrahim Babangida, when private airlines were first allowed to operate freely, including setting their own ticket prices.

He said the Senate had summoned him over rising airfares, but he was unable to attend because of his presentations at FEC.

The minister, however, disclosed that he instructed the Nigerian Civil Aviation Authority (NCAA) and domestic airlines to appear before the Senate Committee in his absence.

Keyamo stressed that while the government could not dictate prices in a free market, it remained actively engaged with airlines to address the underlying factors driving high fares.

“The government has absolutely no power to fix prices for private enterprises. That is what deregulation means. But that does not mean we are leaving the airlines without engagement,” he said.

The minister said operators had repeatedly raised concerns about access to aircraft, unfavourable lease terms, the absence of local maintenance facilities, and the pressure to source large amounts of foreign exchange to conduct mandatory C-checks abroad—factors that all feed into ticket pricing.

He revealed that one of the most significant breakthroughs occurred recently under the Tinubu administration, when, after nearly two decades of absence, a major global aircraft lessor returned to Nigeria and approved a dry lease for a local carrier at a rate three times lower than previous market offerings.

Keyamo attributed the development to reforms introduced by the Federal Government, including new practice directions on the Cape Town Convention, which protect the rights of international lessors and boost confidence in Nigeria’s aviation environment.

“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,” he said.

The minister projected that over the next few months to a year, Nigerians should begin to feel the impact of increased aircraft availability, improved competition, and lower operating costs.

On the issue of multiple taxes and charges on airlines—an issue that has drawn the attention of ECOWAS—Keyamo confirmed that Nigeria had received a regional advisory urging relief for operators.

However, he clarified that ECOWAS lacked the authority to compel member states on matters of taxation.

He explained that aviation taxes fell under the jurisdiction of federal revenue and financial authorities, not his ministry.

“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 said.

Keyamo disclosed that he had already escalated airlines’ tax concerns to the relevant bodies, adding that both the Minister of Finance and other economic authorities were working collaboratively to review the issues.

He maintained that while the government must support operators, it must also sustain the revenue necessary to maintain critical aviation infrastructure nationwide.