BY OLAPEJU OLUBI
Minister of Aviation and Aerospace Development, Festus Keyamo, has called out the Federal Competition and Consumer Protection Commission (FCCPC) for its public criticism of Air Peace’s pricing practices.
He described the FCCPC’s statement as “careless” and urged the agency to collaborate with the Nigeria Civil Aviation Authority (NCAA) before making such remarks.
In an interview with ARISE NEWS on Sunday, Keyamo addressed the controversy that followed FCCPC’s invitation of Air Peace executives to discuss allegations of price gouging and poor service delivery.
He argued that the NCAA, as the core regulatory authority for aviation, should have been consulted first.
“I think it was a very careless statement, I say that with all apologies, by the agency, making such a statement without consulting the core agency involved in regulation, which is the NCAA.
“The power to regulate these airlines and for the airlines to inform about their price increases and all of that is domiciled in the NCAA. That is the core agency.”
Keyamo explained that the issues surrounding airline pricing are more complex than they appear, pointing to the capacity limitations of Nigerian airlines and external factors such as foreign exchange fluctuations.
“What we are facing is a problem of capacity, airlines struggling to acquire aircraft and service their routes,” he said.
“In addition, we have factors completely out of our control, like the fluctuation of the forex and exchange rates, which affect everything in aviation because the industry is dollar-based.”
He highlighted the cost-intensive nature of wet leasing, where airlines rent aircraft along with crews and maintenance support, as a significant financial burden.
“All of these are foreign exchange transactions, and with the fluctuating nature of the naira against the dollar, it inevitably affects their operational costs,” he added.
To address these challenges, Keyamo outlined several government initiatives aimed at bolstering the aviation sector.
Among these is the implementation of the Cape Town Convention practice direction, designed to facilitate easier access to aircraft financing and improve operational efficiency for Nigerian airlines.
“We are working to expose Nigerian airlines to global markets where they can acquire aircraft on better terms. This will positively impact ticket prices and operational costs, Keyamo said. ”
He credited these reforms, supported by President Bola Ahmed Tinubu’s administration, for improving Nigeria’s compliance score with international aviation standards from 49% to 75.5%, a historic achievement for the country.
Keyamo also revealed plans to lead a Nigerian delegation to Dublin in January 2025 for discussions with major global airline financiers.
This engagement aims to secure better financing terms for Nigerian airlines to expand their fleets and improve their capacity.
“For the first time, Nigeria has been invited to Dublin because of the strides we’ve made in improving compliance and facilitating access to international markets.
“This engagement will be critical to reducing costs for airlines and, ultimately, for passengers.”
Keyamo urged the FCCPC and other regulatory agencies to align their efforts with the NCAA to avoid public missteps that could undermine the country’s aviation sector.
“To single out a few airlines that we are working hard to support and expose to global opportunities was a bit careless. We should be working together to strengthen the industry, not creating unnecessary tension,” he noted.
The Minister expressed confidence in the ongoing reforms and government-led initiatives to stabilize and grow Nigeria’s aviation sector.
“These efforts are critical to addressing the core challenges of the aviation industry and ensuring sustainable, competitive operations that benefit the public,” he said.
