Nigerian Airfares Remain Deregulated as NCAA Reaffirms Market-Driven Pricing

The Nigerian Civil Aviation Authority (NCAA) has confirmed that domestic airfares will continue to operate under a deregulated system, with airlines maintaining the autonomy to set prices based on market conditions. This announcement comes amid growing passenger concerns over recent fare increases on domestic routes.

Current Pricing Landscape:
Economy class tickets on major domestic routes now range between ₦50,000 and ₦150,000, with prices fluctuating based on several factors. The NCAA emphasized that this pricing structure has been in place since the 2016 deregulation policy took effect.

NCAA Director-General Capt. Musa Nuhu clarified the authority’s position: “Our role is to ensure fair competition and consumer protection within a deregulated framework. Airlines determine their pricing based on operational realities while complying with established guidelines.”

Key Factors Influencing Airfares:
1. Aviation fuel costs have increased by 210% since 2022
2. Approximately 65% of airline operating expenses are dollar-denominated
3. Maintenance costs and airport charges continue to rise
4. Seasonal demand variations significantly impact pricing

Industry representatives from the Airline Operators of Nigeria (AON) noted that current fare levels reflect the challenging economic environment. “Airlines must cover their operational costs to maintain safety and service standards,” stated AON spokesman Prof. Obiora Okonkwo.

Passenger advocates have raised concerns about:
– Unpredictable fare fluctuations
– Limited pricing transparency
– Reduced affordability for average travelers

While maintaining the deregulated approach, the NCAA enforces several consumer protection measures:
– Mandatory clear display of all fares
– Prohibition of anti-competitive pricing practices
– Requirements for reasonable advance notice of fare adjustments

Market analysts observe that Nigerian airfares remain higher than regional counterparts when measured per kilometer:
– Nigeria: $0.23 per km
– South Africa: $0.18 per km
– Kenya: $0.15 per km

The NCAA maintains that the deregulated system ultimately benefits the aviation sector by encouraging efficiency and service improvement. However, they acknowledge that broader economic stabilization and infrastructure development would help moderate fares in the long term. With no immediate plans for price controls, Nigerian air travelers can expect the current market-driven pricing regime to continue.