FG Says It Cannot Regulate Airfare Prices, Engages Airlines on Cost Drivers

The Minister of Aviation and Aerospace Development, Festus Keyamo, has clarified that the federal government has no legal authority to regulate or fix airfare prices in the country.

Speaking to State House correspondents after Wednesday’s Federal Executive Council meeting in Abuja, Keyamo said the aviation industry has been fully deregulated since the Ibrahim Babangida administration, giving private airlines the freedom to determine their own ticket prices.

He noted that although the government cannot dictate fares, it is actively engaging airlines to address the structural challenges contributing to rising air travel costs.

Keyamo revealed that while the Senate had summoned him over escalating airfares, he was unable to attend the hearing. In his absence, he instructed the Nigerian Civil Aviation Authority (NCAA) and domestic airline operators to appear before the Senate Committee.

“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.

According to the minister, operators have consistently complained about difficulties accessing aircraft, harsh leasing conditions, the lack of local maintenance facilities, and the heavy foreign-exchange demands of carrying out mandatory C-checks abroad, all of which impact ticket pricing.

Keyamo highlighted a recent breakthrough under the Tinubu administration: the return of a major international aircraft lessor to Nigeria after nearly 20 years. The lessor, he said, approved a dry lease for a local airline at a rate three times lower than previously available.

He attributed the development to new government reforms, including updated practice directions under the Cape Town Convention, which provide stronger protections for international lessors and increase confidence in the Nigerian aviation sector.

“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 said.