Special Report: Air Travel in Nigeria - One of the Cheapest Globally
Air
travel in Nigeria has recently become the subject of intense public debate,
with allegations of airfare hikes sparking widespread concern among passengers.
However, airline operators, represented by Prof. Obiora Okonkwo, Chairman and CEO of United Airlines Limited and spokesperson for the Airline Operators of Nigeria, have strongly defended the industry, insisting that domestic air travel within Nigeria remains among the cheapest in the world.
Prof.
Okonkwo explained that despite the perception of rising ticket costs, Nigerian
airlines continue to charge fares that are significantly lower than global
averages. He highlighted that in many countries, short-haul flights can cost
upwards of $1,400 for less than an hour’s journey, whereas in Nigeria, even the
highest fares rarely exceed $200 when converted from naira. He emphasized that
the apparent spikes in ticket prices are seasonal, driven by increased demand
during festive periods, rather than deliberate price gouging.
The
operators argue that the low fares come at a heavy cost to the airlines themselves.
Nearly all operational expenses, spare parts, maintenance, equipment
procurement, are paid in dollars, while tickets are sold in naira. This creates
a financial imbalance, worsened by high-interest loans in Nigeria (30–35
percent compared to 2–7 percent abroad) and multiple taxes and levies that do
not exist in other markets. These challenges have contributed to the high
mortality rate of Nigerian airlines, with many struggling to remain
sustainable.
Airline
operators also clarified that ticket pricing follows a structured formula, with
multiple fare classes even within economy cabins. For example, while some
passengers may pay ₦400,000 for a ticket, others on the same flight may pay
₦100,000, resulting in an average fare between ₦120,000 and ₦150,000. They
stressed that sensationalized reports often highlight only the highest ticket
categories, ignoring the broader pricing structure.
The
Federal Competition and Consumer Protection Commission (FCCPC) has launched
investigations into alleged exploitative practices, particularly on routes
serving the South-East and South-South, where fares have reportedly risen by as
much as 150 percent.
Lawmakers
have also urged the government to grant tax waivers and reduce auxiliary
charges to ease the burden on travelers during peak seasons. The FCCPC,
however, clarified that it is not a price control board but is mandated to
protect consumers from collusion, exploitation, and unfair pricing practices.
While
Nigerian passengers continue to express frustration over rising fares, airline
operators maintain that domestic air travel in Nigeria is still among the
cheapest globally.
The real
issue, they argue, lies in the unsustainable financial pressures faced by
airlines, which threaten the long-term viability of the industry.
The
debate underscores the delicate balance between affordability for passengers
and survival for operators, a challenge that will require government
intervention, regulatory oversight, and industry reforms to resolve.
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