NAMA, Airlines Grapple Over Proposed Tariff Hike

The Director-General of the Nigerian Airspace Management Agency (NAMA), Farouk Umar, has reiterated the need to increase the current N11,000 fee charged per flight on airline operators, describing it as unsustainable given prevailing economic realities and the rising cost of maintaining aviation infrastructure.

In July 2024, Economic Confidential reported that the Minister of Aviation and Aerospace Development, Festus Keyamo, had proposed a review of charges to sustain operations and ensure airspace safety. The plan was later suspended in light of economic pressures on Nigerians.

However, speaking in Abuja on Tuesday at a stakeholders’ summit organised by the House of Representatives Committee on Aviation, Umar insisted the review was overdue. The summit focused on the theme: “Emerging Trends in Global Aviation: Sustainability, Technology and Digital Transformation.”

He noted that the N11,000 fee—unchanged since 2008—is charged per flight rather than per passenger. For instance, airlines pay the same amount for a Lagos–Abuja trip regardless of passenger numbers, even as ticket fares now range between N150,000 and N200,000.

“In 2008, we were collecting N11,000 per flight. Sixteen years later, ticket prices have risen sharply, but we are still charging the same fee,” Umar said. “NAMA is a cost recovery organisation, not a charity. We must recover what we invest in procuring and upgrading critical aviation infrastructure.”

He highlighted heavy investments in instrument landing systems, radar surveillance, and communication technologies designed to align Nigeria’s aviation sector with global safety standards. According to him, inflation, exchange rate pressures, and supply chain disruptions have made costs skyrocket.

“We keep modernising to ensure Nigeria is not left behind in global aviation development, yet airlines are still paying peanuts. Safety is at stake if we cannot recover costs,” Umar added.

Airlines Push Back

Airline operators have resisted calls for higher charges, arguing that additional costs could worsen their fragile financial state. Rising fuel prices, forex shortages, and multiple taxes have already stretched the sector, they say, and any fee increase may translate into higher ticket prices for passengers.

Umar, however, criticised operators for resisting change while routinely hiking ticket prices to match their own expenses. “The airlines have not been fair to the agency. They adjust fares to reflect economic realities, yet expect us to operate under outdated charges,” he said.

Speaking at the event, Chairman of the House Committee on Aviation, Abdullahi Garba, stressed the need for collaboration to strengthen the sector. Represented by his deputy, Festus Akingbaso, Garba pledged parliamentary support for aviation agencies, provided transparency and efficiency are upheld.

Industry analysts note that unlike Nigeria, where a flat charge has persisted for 16 years, countries in North America and Europe peg airspace management fees to aircraft size, distance, and operational parameters—ensuring full cost recovery.

While stakeholders agree that NAMA’s cost-recovery argument is valid, operators caution that a poorly managed tariff hike could push airlines and passengers to the breaking point.