Economy

Airfare Hikes Loom as NAMA Boosts Navigation Charges

The Nigerian Airspace Management Agency (NAMA) has announced a significant increase in navigational charges amid expensive air tickets.

Umar Ahmed Farouk, Managing Director of NAMA, disclosed that en-route navigational charges will rise from N2,000 and N6,000 to N18,000 and N54,000 per flight.

Also, the cost for extending service hours has been elevated from N50,000 to N450,000 per extension, marking an 800% increase.

These adjustments are part of NAMA’s strategy to address the escalating costs of airspace management, driven by soaring diesel prices and other logistical expenses.

Stakeholders warn that this substantial increase in fees will inevitably lead to higher airfares for both domestic and international flights.

With the aviation industry already facing economic challenges, airlines are expected to pass these additional costs onto passengers.

The decision comes amid rising inflation and economic volatility in Nigeria, which have led to significant increases in ticket prices.

Farouk highlighted that while airfares have surged to between N150,000 and N200,000 for a one-way economy ticket, NAMA’s charges had remained unchanged since 2008.

Farouk emphasized the necessity of these increases, citing the need for NAMA to maintain operational efficiency and ensure safety in the airspace.

He noted that NAMA’s revenue is primarily generated from charges on domestic and international flights, with the agency relying heavily on these funds to manage air traffic services effectively.

NAMA’s actions reflect a broader trend within the aviation sector to adjust pricing in line with operational costs.

However, these changes come at a time when the industry is grappling with challenges posed by a challenging macroeconomic environment.

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