Minister: Competition, increased seat capacity driving down airfares

…Nigeria leads SAATM push

The Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, has attributed the recent downward moderation in domestic airfares to an influx of aircraft capacity and surging passenger traffic, which together have fostered a healthier, competitive market.

Speaking on the sidelines of the recently concluded Airports Council International (ACI) Africa Conference in Abuja, Keyamo admitted that airfares have dropped significantly from the peak levels witnessed during the December–January high-demand period.

He emphasised that market forces, rather than government-enforced price controls, represent the most sustainable mechanism for stabilising fare structures across domestic and regional yield-managed routes.

According to Keyamo, the ministry’s intentional policy shift toward easing regulatory bottlenecks and enabling easier access to aircraft has shifted the market away from severe capacity deficits which previously triggered fare spikes of ₦400,000 to ₦500,000 toward a balanced baseline of around ₦100,000 to ₦150,000.

Keyamo highlighted the entry of new domestic and state-backed carriers, such as Enugu Air and prospective entrants like Caliphate Airlines, alongside fleet expansions by existing operators, as key drivers of increased available seat capacity.

“Airfares are no longer at the levels recorded in December or January. They have come down, and this is largely because of competition,” Keyamo stated. “We have created an environment where airlines have greater access to aircraft, thereby promoting healthy competition. We are not there yet, but the effects of the policies of President Bola Ahmed Tinubu are beginning to manifest.”

He added that long-term structural fixes are replacing short-term interventions: “We have repeatedly explained that these things do not happen overnight. The President is taking a long-term approach rather than pursuing quick fixes. His policies are deliberately designed to deliver lasting solutions to the challenges facing different sectors, and aviation is one clear example.”

Beyond route dynamics, Keyamo outlined underlying institutional upgrades that have reinforced investor and lessor confidence in the country’s aviation environment.

He pointed to targeted investments in air navigation infrastructure and regulatory oversight under the Nigerian Civil Aviation Authority (NCAA). A major milestone achieved under these reforms includes a substantial boost in Nigeria’s aviation safety rating.

“Before we came into office, Nigeria’s score was low. Today, following deliberate interventions, Nigeria recorded an impressive safety oversight implementation score of over 91 per cent in the latest International Civil Aviation Organisation (ICAO) evaluations, among the highest on the continent,” Keyamo said.

“These measures have helped attract greater interest in Nigeria’s aviation sector. The numbers speak for themselves. As highlighted by airport managers, we are witnessing increases in passenger traffic and aircraft inflows, while airfares are also beginning to decline due to increased competition,” he noted.

Keyamo also disclosed that Nigeria is actively championing regional connectivity through the Single African Air Transport Market (SAATM).

He noted that the country’s leadership in intra-African aviation integration earned it recognition from the African Development Bank (AfDB), which appointed Nigeria to lead its flagship programme for integrating African air transport infrastructure.

He emphasised that bridging intra-African route bottlenecks is vital to sustaining commercial momentum under the African Continental Free Trade Area (AfCFTA).

“We are beginning to connect the continent. For example, Nigerians previously could not travel directly from Abuja to Cameroon and would often have to connect through another country,” Keyamo explained.

“Today, we have airlines operating direct routes between Abuja and Yaoundé, as well as other African destinations.”

He noted that several new route applications from domestic and regional carriers are currently undergoing regulatory processing to satisfy growing travel demand driven by Africa’s expanding middle class.

By dismantling protectionist bilateral hurdles, streamlining 5th Freedom traffic rights, and promoting point-to-point regional service, Nigeria aims to establish its primary gateways as major West and Central African hubs while delivering competitive fare options for travelling passengers.

Wole Shadare