Airfares to rise as NAMA announces plans to increase plane charges by 800%

The Nigerian Airspace Management Agency (NAMA) has reportedly announced plans to raise en-route navigational charges from N2000 and N6,000 to N18,000 and N54,000 per flight.

Reports that the airspace agency equally increased the extension of hours of service to airlines from N50,000 to 450,000, representing 800 per cent increase per extension.

This is to enable the agency to recover the cost of diesel and other logistics during the period of extension.

Stakeholders say this implies that air fares would rise to reflect the new increase in charges.

Umar Ahmed Farouk, the Managing Director of NAMA, disclosed this on Friday, July 26, at an event in Lagos.

According to him, “Currently, our unit rate for international flights charged for service provision is about $70, domestic flights are charged 6,000 Naira. While NAMA recognizes the difficult economic environment aviation operates in Nigeria, it is equally a part of the ecosystem. It goes to the same market to procure equipment and other services like training. If NAMA is to survive and continue to guarantee safety and efficiency in the airspace, it must breathe.

Even though most costs in the economy have increased by more than 1,000 percent, NAMA has proposed to increase its fees by 800%.

The new rates for en-route and terminal navigation charges are to be reviewed from 2,000 and 6,000 Naira to N18,000 and N54,000 per flight.

Also, the extension of hours of service is to be reviewed from N50,000 to N450,000 per extension to enable the agency to recover the cost of diesel and other logistics during the period of extension.

The largest percentage of NAMA’s revenue comes from en-route navigation charges (domestic and international flights) and terminal navigation charges (domestic and international flights). While international flights pay in US dollars, domestic flights pay in the Nigerian currency.”