Minister of Aviation and Aerospace Development, Festus Keyamo, has said the Federal Government cannot intervene directly in domestic airfares because Nigeria’s aviation market is deregulated. He explained that pricing is determined by private airlines, but assured that new aircraft leases and increased competition will help reduce ticket costs.
Speaking to State House correspondents after the Federal Executive Council (FEC) meeting in Abuja on Wednesday, Keyamo noted that deregulation, introduced during the Babangida era, removed government’s legal authority to set ticket rates.
“Government has absolutely no powers to fix prices for private enterprises. That is what deregulation means,” he said.
Keyamo attributed the recent spike in fares to structural challenges, including limited aircraft availability, high lease costs, lack of local heavy-maintenance facilities, and dependence on foreign exchange for mandatory checks abroad.
He announced that global aircraft lessor Aercap has returned to Nigeria after nearly two decades, offering cheaper dry-lease options to local airlines. He said this development would expand fleet capacity and stimulate competition, which remains the most effective way to lower fares in a free market.
“The only thing that can drive prices down in a free economy is competition. In the next few months, or within the next year, I expect more aircraft on more routes, forcing prices down,” Keyamo explained.
