Aviation Minister Festus Keyamo has criticized the Federal Competition and Consumer Protection Commission’s (FCCPC) statement on Air Peace’s pricing methodology, calling it “careless” and urging the agency to have consulted the Nigeria Civil Aviation Authority (NCAA) before making public remarks.
In an interview with ARISE NEWS on Sunday, Keyamo emphasized that the FCCPC’s statement, which questioned Air Peace’s pricing practices amid allegations of price gouging and poor service delivery, was made without engaging with the NCAA, the primary regulatory body for Nigeria’s airlines.
“I think it was a very careless statement — I say that with all due respect — for the agency to make such a statement without consulting the core agency involved in regulation, which is the NCAA. The power to regulate airlines and oversee their pricing is vested in the NCAA,” Keyamo explained. “They should have contacted the NCAA to examine the facts, as we have been doing, rather than singling out airlines we are working to help build up.”
Keyamo further clarified that the issue at hand was not exploitation, but rather the limitations of the airline industry, particularly with regard to aircraft acquisition and servicing routes. He pointed out the challenges posed by fluctuating foreign exchange rates, which impact the cost of aircraft leasing and other aviation expenses, most of which are dollar-denominated.
“Many of our airlines are spending foreign exchange, especially for wet leasing aircraft. With the fluctuating value of the naira against the dollar, this inevitably affects their operational costs,” Keyamo noted. He also revealed that the government is working to improve the industry’s access to more favorable aircraft financing deals. “In January, I will lead a Nigerian delegation to Dublin to meet with major airline financiers to discuss how we can access aircraft at better rates, which will ultimately help reduce ticket prices and lower operational costs for local airlines.”
Keyamo credited the administration of President Bola Ahmed Tinubu for efforts that have enhanced Nigeria’s global compliance score, from 49% to 75.5%, helping to position the country as a stronger player in the global aviation market. This improvement has led to increased interest from international financiers, who are now open to offering Nigeria’s airlines better aircraft leasing terms.
While acknowledging the need to protect consumers, Keyamo reaffirmed his commitment to ensuring the survival of local airlines, stressing the high mortality rate of Nigerian airlines over the past 40 years. He stated that this government is focused on enhancing the capacity of local carriers, with the aim of preventing their collapse and ensuring a more sustainable aviation sector in the country.
“Protecting Nigerian consumers is vital, but we also must ensure that our local airlines do not go under,” Keyamo concluded. “For the first time, this government is prioritizing the survival of local airlines. We’re committed to addressing both the challenges faced by the airlines and the concerns of Nigerian passengers.”
