Festus Keyamo, Minister of Aviation and Aerospace Development, says the Federal Government has no legal authority to regulate or cap domestic airfares, explaining that Nigeria’s aviation market has been fully deregulated for decades.
Okay News reports that Keyamo spoke on Wednesday while briefing State House correspondents after the Federal Executive Council meeting at Aso Rock Villa.
Keyamo said the pricing structure in the aviation sector has operated on market forces since liberalisation began under the Babangida administration.
According to him, ticket costs are strictly determined by airlines, not by government directives.
“Government has absolutely no powers to fix prices for private enterprises. That is what deregulation means,” he said.
He added, “But that does not mean we are leaving the airlines without engagement.”
Keyamo confirmed he had been invited by the Senate to discuss rising airfares but was unable to attend due to his scheduled presentation before FEC.
He said he directed both the Nigerian Civil Aviation Authority (NCAA) and domestic airlines to honour the National Assembly invitation in his stead.
Addressing the reasons behind the sharp increase in ticket prices, especially noticeable during the festive season, the minister pointed to deep structural problems within the aviation ecosystem.
He said the cost pressures faced by airlines today are linked to factors that have accumulated over many years.
Keyamo listed limited access to aircraft, expensive leasing agreements, the absence of local heavy-maintenance facilities and the constant scramble for foreign exchange to carry out mandatory C-checks abroad as major contributors. These costs, he explained, inevitably translate into high fares for passengers.
