FAAN: Despite high charges, Nigeria’s aviation pricing falls short of reality

The Director of Public Affairs and Consumer Protection of the Federal Airports Authority of Nigeria (FAAN), Mr Henry Agbebire, said the recent classification of Nigeria by the International Air Transport Association (IATA) as one of the countries with aviation charges above the global average fits neatly into a long-standing narrative, depicting Africa as expensive, Nigeria as difficult, and airlines as victims.

He noted that IATA is not entirely wrong if they consider aviation charges across Africa, noting that they are indeed higher, estimated at about 15% above global averages, with Nigeria listed among countries contributing to this trend.

 Agbebire noted that taxes, fees, and levies, ranging from passenger service charges to API/PNR systems, have become significant components of ticket pricing, adding that in some African markets, they account for up to 60–70% of ticket costs.

 He admitted that in Nigeria specifically, multiple cost pressures exist, noting that passenger service charges can range from $80 to $100 per international passenger.

 Additional levies, such as security or data charges, he said, have also become unavoidable; hence, airlines face a broader ecosystem of high operating costs, including taxes and regulatory fees. So on the surface, Nigeria appears expensive.

 He said, “Stopping there, however, would be an oversimplification and an incomplete assessment. I believe IATA has not taken into consideration the Nigerian reality. The real issue is not simply high charges. It is why those charges exist.”

 “Is it not curious that Nigeria’s aviation pricing structure has historically fallen short of reality, considering decades of under-pricing and deferred investment? Some tariffs remained virtually unchanged for nearly two decades. Recent increases, often cited as evidence of high costs, are in fact corrections, not excesses. For example, cargo charges raised from ₦7 to ₦20 per kg are still below the inflation-adjusted equivalent of ₦27.”

 Agbebire further stated that many tariff adjustments are directly tied to infrastructure modernisation and safety upgrades, stressing that the uncomfortable truth remains that “you cannot run a 21st-century aviation system on 2002 pricing.”

 “Interestingly, some other things are raising costs. Blaming government charges alone ignores the elephant in the room: system weaknesses and outside pressure. Consider the surge in jet fuel prices in Nigeria, which rose by 270–300% within months. Airlines, especially in Africa, face disproportionately high fuel costs.

 “Foreign exchange constraints, which hitherto led to $850 million in blocked airline funds, triggered increased operational risk and ticket prices. These factors, spanning fuel, forex, and logistics, often outweigh statutory charges in determining ticket prices. Yet they are rarely emphasised in global narratives”.

 “While on the one hand, airlines demand lower charges, better infrastructure, higher safety standards, and global compliance, they fail, on the other hand, to recognise that these outcomes require massive capital investment. Nigeria faces an infrastructural paradox. There is a conflict between keeping charges artificially low and infrastructure deterioration. There is a contradiction in adjusting charges, while airlines complain of high costs. There is no version of aviation development that is both cheap and world-class.”

 He buttressed the claim that IATA itself acknowledged that the problem is not unique to Nigeria, noting that it is a symptom of continental reality, with other African countries, namely Angola, Ghana, Kenya, and the DRC, similarly classified. Africa’s entire aviation ecosystem carries a structural cost premium.

 This, he said, suggests a systemic issue, comprising fragmented markets, low passenger volumes, infrastructure deficits, and high financing costs.

 “Truth is, despite the criticism, Nigeria is actively reforming. The government’s recent intervention to mitigate jet fuel price increases and stabilise the airline industry through incentives is commendable. The move toward cost transparency and direct fuel supply reforms is a step in the right direction. Besides, efforts to balance airline sustainability with passenger protection, coupled with tariff restructuring aligned with international standards, are all areas worthy of note.”

“These are not the actions of a system indifferent to competitiveness; they are the actions of a system in transition. The debate, therefore, should not be framed as, “Are Nigeria’s charges high?” Instead, it should be, “Are Nigeria’s charges justified by the value they enable?” If higher charges fund safer airports, modern infrastructure, improved passenger experience, global compliance, then they are not merely costs; they are investments.”

Wole Shadare