BY OLAPEJU OLUBI
The Nigeria Airspace Management Agency (NAMA) has proposed a substantial 800% increase in navigation fees and charges to reflect the current economic realities.
The proposed adjustment, set to take effect on September 1 pending a stakeholders’ meeting, will significantly impact the aviation sector.
The revised rates will see en-route navigation charges rise from 2,000 Naira to N18,000 per flight, while terminal navigation charges will increase from N6,000 to N104,000 per flight.
Additionally, the fee for extending service hours will jump from N50,000 to N450,000 per extension.
These changes aim to help NAMA cover escalating costs, including those for diesel and other logistics.
NAMA’s Managing Director, Engineer Ahmed Farouk, unveiled these proposals at the League of Airport and Aviation Correspondents (LAAC) Conference, themed “Aviation Survivability Amidst a Challenging Macro-Economic Environment.”
Farouk stressed that adequate funding is crucial for NAMA to fulfill its safety responsibilities effectively.
Farouk pointed to recommendations from ICAO Doc 9082, which advocate for cost recovery in service provision to cover expenses related to equipment, personnel, training, and other ancillary costs.
He clarified that NAMA operates as a non-profit entity, emphasizing the disparity between current navigation charges and the escalating costs in the aviation sector.
“NAMA has been charging as low as NGN11,000 per flight when a one-way domestic ticket cost only NGN16,000. Today, ticket prices range from NGN150,000 to NGN200,000 for a one-way economy ticket due to economic conditions, yet NAMA’s charges have remained unchanged since June 2008,” Farouk explained.
He highlighted the unsustainability of current fees, noting that NAMA charges 50,000 Naira for every hour of extended service beyond stipulated hours at non-24-hour aerodromes.
The NAMA boss recalled that back in 2008, diesel cost approximately 113 Naira per liter, whereas it now exceeds 1,400 Naira per liter, marking a more than 1,000% increase.
Farouk provided a comparative look at international and domestic navigation fees, stating, “Our unit rate for international flights is about $70, while domestic flights are charged 6,000 Naira.
“Despite the tough economic environment in Nigerian aviation, NAMA, being part of the ecosystem, faces similar challenges in procuring equipment and services,” he said.
Addressing airline operators, Farouk emphasized the need for balanced pricing, pointing out the unfairness in the current fee structure and advocating for a symbiotic relationship between airlines and NAMA.
He underscored that increasing navigation fees is essential for maintaining safety and efficiency in Nigeria’s airspace.
Farouk concluded by stressing the importance of efficient pricing for products and services in the aviation industry, highlighting its role in enhancing affordability, driving competition, and supporting infrastructural development.
“The proposed fee increase aims to ensure NAMA’s survival and continued provision of safe and efficient airspace management amidst Nigeria’s challenging macro-economic environment.
“These proposed changes, if implemented, will significantly impact the cost structure for airlines operating in Nigeria, potentially leading to higher ticket prices but also ensuring that NAMA can continue to fulfill its critical safety and operational responsibilities,” he stressed.
