The Nigerian Airspace Management Authority (NAMA) has backtracked on its initial plan to increase navigational charges by 800%.

The decision was made after the Minister of Aviation and Aerospace Management, Festus Keyamo, recognized Nigeria's current economic challenges.

NAMA’s Director of Public Affairs and Consumer Protection, Abdullahi Musa, disclosed this in a statement.

According to reports, Keyamo disclosed the need for further consultation before implementing any changes, stressing the importance of being sensitive to Nigerians' plight in the face of economic challenges.

NAMA’s managing director, Farouk Ahmed Umar, hinted at a conference in Lagos on Friday, July 26, 2024, that the agency will hike the charges following increased service costs in the airports.

NAMA’s proposed hike was to cover service costs The NAMA boss disclosed that it would raise en route navigational charges from N2000 and N6,000 to N18,000 and N54,000 per flight.

The agency also increased the extension of service hours to airlines from N50,000 to N450,000, representing an 800% increase per extension to allow the agency to recover the cost of diesel and other logistics during the period.

Nigerians to brace for fare hikes

Aviation experts say the development implies an imminent increase in airfares by domestic airlines to reflect the new increases.

Reports say that in January, NAMA and the Nigerian Civil Aviation Authority (NCAA) held a strategic meeting with airline operators to review the N16,000 Terminal Enroute Navigational Charges.

The meeting tried to get the airlines’ understanding of reviewing the rate, which the airlines agreed needed to be adjusted.

NAMA said it decided to ease the cost of airspace surveillance and airport security, which could lead to high increases in domestic and international airfares.

Airline operators warn of imminent fare increases

The NAMA boss stated that the industry needs very efficient pricing of products and services. It is essential for boosting affordability, driving competition, and improving operational efficiency. Farouk stressed that the price for services must reflect the value of the services.