The Nigerian government suggests an 800% hike in aircraft navigation fees. Read about the details and potential effects on airlines.
The Nigeria Airspace Management Agency (NAMA), under the jurisdiction of the Nigerian government, has planned to implement a substantial increase in aircraft navigation fees and charges by 800 percent starting from early September.
The disclosure of this progress was made by NAMA’s Managing Director, Mr. Umar Farouk, at the 28th League of Aviation and Airport Correspondents (LAAC) Conference in Lagos on Friday.
Farouk clarified that the fees were last updated in 2008 and stated that subject to stakeholder consultations, the proposed increase could be enforced by September 1st.
Under the proposed modifications, en-route navigation charges for each flight will escalate from N2,000 to N18,000. Similarly, terminal navigation fees would surge from N6,000 to a substantial amount of N104 100 on every journey made.
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“We are contemplating raising the service hours extension fee from N50,000 to N450,000 per extension as a means of covering diesel and other logistical expenses,” he stated.
Furthermore, Mr. Festus Keyamo (SAN), the Minister of Aviation and Aerospace Development, affirms that the federal administration is dedicated to formulating regulations aimed at enhancing the competencies of domestic airlines.
Keyamo pointed out the Nigerian government’s emphasis on advancing Maintenance Repair Organization (MRO) infrastructures throughout Nigeria. He specified ongoing talks with investors hailing from Europe, Asia, America, and the Middle East concerning investments in these facilities that are anticipated to have a significant impact on promoting growth within the aviation industry.
Keyamo expressed disapproval towards certain bilateral air service agreements, citing their disadvantageous terms for Nigeria. He highlighted the tendency of foreign airlines to prioritize high-demand Nigerian routes over domestic carriers which are often restricted to less profitable routes in these countries.
He remarked that Lufthansa arrives at their location, however they do not offer flights to Frankfurt. Further adding that Delta and United arrive from America but his company does not provide services there either. Additionally, he pointed out South Africa’s arrival without any reciprocal arrangements.
The CEO of CITA Aviation Fueling Ltd. and Chairman of the conference, Dr. Thomas Ogungbangbe highlighted that the Nigerian aviation industry is currently grappling with a multitude of obstacles due to prevailing economic conditions.
Several crucial concerns were delineated by Ogungbangbe, encompassing the exorbitant expenses of fuel, restricted entry to foreign exchange, a declining currency and an incessant requirement for maintenance and development of infrastructure.
He pointed out that even though these challenges exist, they can also serve as chances for the industry to innovate, collaborate and make progress.
He stressed the importance of not only investing in new airport projects but also focusing on critical infrastructure such as roads. Neglecting road networks can have a negative impact and hinder accessibility to airports, which ultimately reduces air travel popularity. Therefore, an improved network of transportation is necessary for enhancing ease-of-accessibility to airports and improving overall appeal towards air travel.
Ogungbangbe emphasized the significance of fueling economic advancement, optimizing resource allocation, bolstering collaborations between private and public sectors, strategizing cohesive transport solutions, and enhancing Nigeria’s reputation as a top-notch tourist attraction.
