Economic challenges: NAMA suspends planned 800% increase in flight charges
By Seun Ibiyemi
In response to the directive from the Minister of Aviation and Aerospace Development, the Nigerian Airspace Management Agency (NAMA), Festus Keyamo, has suspended its earlier announced 800 percent increase in navigational charges.
This decision follows the Minister’s recognition of the current economic challenges faced by Nigerians.
This was disclosed in a statement signed by Abdullahi Musa, Director, Public Affairs and Consumer Protection NAMA.
The Minister emphasised the need for further consultation before implementing any changes, highlighting the importance of being sensitive to the plight of Nigerians amidst these economic challenges.
This decision follows the keynote address by Farouk Ahmed Umar, Managing Director/CE of NAMA, at the League of Airports and Aviation Correspondents Annual Conference held in Lagos on July 26, 2024. The theme of the conference was “Aviation Survivability amidst a Challenging Macro-Economic Environment.”
In his address, Farouk highlighted the significant economic pressures faced by the aviation industry, exacerbated by global economic volatility, fuel price hikes, and currency instability.
He outlined strategies for survival and growth, including operational efficiency, embracing innovation and technology, strengthening infrastructure, and fostering collaboration and partnerships.
Farouk also discussed the financial challenges NAMA faces, noting that the agency relies on statutory fees and charges for managing the airspace.
The Nigerian airspace management agency had proposed an increase in its fees and charges to sustain its operations and ensure the safety and efficiency of Nigeria’s airspace.
The new unit rate/minimum charge for en-route was set to increase to 18,000 Naira from 2,000 Naira per flight while the unit rate/minimum charge for terminal navigation charge(TCN domestic) were to rise to 54,000 Naira from 6,000 Naira per flight with effect from the 1st of September.
The Nigerian Airspace Management agency said it would continue to engage the airlines, who have been responding to the prevailing economic situation since 2008 without taking NAMA into consideration, which is supposed to be a cost recovery agency in line with global practices.
The directive from the Minister and the subsequent suspension of the planned increase underscore the government’s commitment to addressing the concerns of Nigerian citizens and stakeholders in the aviation sector, Musa said.
