Despite the lamentations by air travelers over what they described as an outrageous airfare in the nation, the Federal Government revealed it lacks the legal authority to fix or regulate domestic airfares because for decades now, aviation sector has been fully deregulated.
The minister for Aviation and Aerospace Development, Festus Keyamo SAN made the clarification while briefing State House correspondents after the Federal Executive Council (FEC) meeting, presided over by President Bola Ahmed Tinubu, at the Presidential villa on December 10th, 2025.
Keyamo explained that the Policy of deregulation, which grants private airlines freedom to set their own prices for tickets, dates back the administration of Former Military Head of State General Ibrahim Babangida.
“Government has absolutely no powers to fix prices for private enterprises. That is what degradation means, but that doesn’t mean we are leaving the airlines without engagement”, The minister stated.
The Minister acknowledged that operators grapple with significant cost drivers that ultimately reflect in ticket pricing, including limited access to aircrafts, lack of local maintenance facilities, unfavorable lease arrangements, the persistent need for foreign exchange to conduct mandatory C-checks abroad.
Keyamo noted a major development under the current administration that promises relief; the return of a major international aircraft lessor to the Nigerian market after almost two decades.
This development has resulted in a dry lease being granted to a local carrier at a rate that is three times cheaper than previous offers.
The minister attributed the breakthrough to the recent reforms and new practice directions under the cape town convention, which has successfully boosted the confidence of investors.
Keyamo predicted that this will naturally lead to lower fares, “with cheaper dry leases coming in, more airlines will have access to aircrafts. More aircrafts automatically means stronger competition. And competition is what brings prices down in any free economy, “The minister expects passengers to begin seeing the impact of increased fleet capacity within the next few months to the year.
On the issue of multiple taxes and charges - an issue recently flagged by ECOWAS - Keyamo revealed that the country had recently received an advisory urging relief for operators. However, he noted that taxation falls outside the jurisdiction of the ministry.
“I cannot wake up one morning and abolish taxes. This revenue goes into the account of the Federation. The tax Authorities, the Finance Minister, and other stakeholders must also be at the table,” He disclosed.
Keyamo said that he had already escalated operators concerns to the relevant authorities and that discussions were ongoing. He added that while the government are committed to easing Industry challenges, it must also safeguard the revenue needed to maintain crucial aviation infrastructure.
Talking as usual
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