The Nigerian Airspace Management Agency (NAMA) has announced a suspension of its controversial decision to increase navigational charges by 800%.
The planned hike, which was set to take effect on September 1, 2024, has been halted following the intervention of the Honourable Minister of Aviation, Festus Keyamo.
NAMA announced the suspension via a terse statement published on X.com on Monday.
The statement says, “NAMA has suspended the planned increase in navigational charges, which was set to take effect on September 1st due to the current economic situation. Further consultations will be conducted to address all concerns.”
The dramatic rate increase was initially intended to raise en-route navigational fees for local flights from N2,000 to N18,000, and for international flights from N6,000 to N54,000 per flight.
Additionally, the cost for extending operating hours at sunset airports was set to surge from N50,000 to N450,000 per extension. The decision aimed to address rising operational costs, including expenses related to diesel and other logistical needs.
However, the proposal faced significant backlash from both the aviation industry and the public.
The announcement of the hike on July 27, 2024, immediately triggered widespread concern and criticism.
Industry stakeholders, including airlines and passenger advocacy groups, warned that the increases would lead to substantially higher airfares, exacerbating an already strained sector.
In response to the outcry, Festus Keyamo, the Minister of Aviation, intervened and urged NAMA to reconsider the decision.
Keyamo’s intervention was driven by mounting concerns over the impact of the proposed fee adjustments on Nigeria’s aviation sector and the broader economy.
This move is being contemplated due to ongoing slot allocation issues between Nigeria and the United Kingdom, which have adversely affected Nigerian carrier Air Peace.
The situation has arisen from Air Peace’s difficulties in securing slots at Heathrow Airport, the UK’s premier airport, forcing the Nigerian airline to use Gatwick Airport instead. In response to this imbalance, Nigeria’s Minister of Aviation and Aerospace Development, Festus Keyamo, has called for a reassessment of the current slot allocations under the Bilateral Air Service Agreement (BASA) between the two nations.
NAMA’s Managing Director, Engr. Umar Ahmed Farouk, acknowledged the need for dialogue and promised that the agency would work closely with relevant parties to find a more balanced approach.
According to Farouk, NAMA’s current charges had not been updated since June 2008, despite significant increases in operational costs.
In 2023 alone, the agency reported spending approximately N21 billion on personnel costs, over N12 billion on capital expenses, and more than N10 billion on overheads.
Farouk argued that the new rates were crucial for maintaining the safety and efficiency of Nigeria’s airspace.
He highlighted that while the cost of domestic flights had surged to between N150,000 and N200,000, NAMA’s fees had remained unchanged.
He also emphasised that the fee adjustments were in line with international best practices and necessary for supporting infrastructure improvements and ensuring airspace safety.
However, the Airline Operators of Nigeria (AON) strongly opposed the increase, arguing that the already burdensome taxation and foreign exchange instability were putting immense pressure on their operations.
AON spokesperson Prof. Obiora Okonkwo warned that the fee hike would likely lead to further increases in airline ticket prices, further straining the travel budget of Nigerian passengers.
