The International Air Transport Association (IATA) classification of Nigeria as a country with aviation charges above global averages has sparked renewed debate over the cost of air travel in the country.
Responding to the development, the Federal Airports Authority of Nigeria (FAAN) said while the assessment is partly valid, it does not fully capture the deeper economic and structural factors driving pricing in the sector.
In a statement signed by its spokesperson, Henry Agbebire, the authority acknowledged that aviation charges across Africa are estimated to be about 15 percent higher than global averages, with Nigeria contributing to that trend.
However, FAAN argued that a significant portion of airline ticket pricing stems from multiple layers of taxes, fees, and statutory levies. These include passenger service charges, security fees, and API/PNR-related costs, which in some cases account for as much as 60 to 70 percent of total fares.
“In Nigeria specifically, multiple cost pressures exist. Passenger service charges can reach between $80 and $100 per international passenger, alongside other mandatory levies,” the statement noted.
Despite this, FAAN stressed that focusing solely on charges presents an incomplete picture of the situation.
“The real issue is not simply ‘high charges’; it is why those charges exist,” the authority said, explaining that many tariffs remained unchanged for nearly two decades and recent increases are adjustments toward economic reality.
The agency cited cargo tariffs as an example, noting that while rates rose from N7 to N20 per kilogram, they remain below the inflation-adjusted equivalent of N27.
Beyond tariffs, FAAN pointed to broader macroeconomic challenges, including surging jet fuel prices and foreign exchange constraints, as key drivers of airline operating costs. According to the authority, jet fuel prices increased by over 270 to 300 percent within a short period, while forex issues once trapped as much as $850 million in airline funds.
These factors, FAAN argued, often outweigh statutory charges in determining ticket prices but receive less attention in global assessments.
The authority also highlighted what it described as an infrastructural paradox, where stakeholders demand world-class aviation standards while resisting necessary pricing adjustments.
“There is no version of aviation development that is both cheap and world-class. You cannot run a 21st-century aviation system on 2002 pricing,” Agbebire stated.
FAAN maintained that Nigeria’s aviation pricing reflects the cost of ongoing transformation rather than excessive charges, urging stakeholders to adopt a more balanced view of the sector’s challenges.
