The Nigerian Airspace Management Agency (NAMA) has announced the suspension of its proposed 800 per cent increase in the navigational charges paid by airlines.
The agency said in a statement by its spokesman, Mr Abdullahi Musa that the decision to put the increase on hold was in response to the directive by the minister of aviation and aerospace development, Mr Festus Keyamo.
NewsGazette had earlier reported that the managing director of the agency, Mr Umar Farouk, had announce the proposed increase in fees and charges at the 28th edition of the Annual League of Airport and Aviation Correspondents (LAAC) held last Friday in Lagos.
He stated that the increase in the agency’s fees and navigational charges “is meant to enable it survive the challenging macro-economic environment.
He pointed out that the agency’s fees and charges had remained the same over the years while most costs in the economy have increased by more than 1,000 per cent.
“The new unit rate/minimum charge for en-route is N18, 000 from N2, 000 per flight while the new unit rate/minimum charge for terminal navigation charge (TCN domestic) is N54, 000 from N6, 000 per flight with effect from the 1st of September, 2024.
“Also, the extension of hours of service is also to be reviewed from N50, 000 to N450, 000 per extension to enable the Agency recover the cost of diesel and other logistics during the period of extension,” he announced.
Continuing, he said: NAMA has been charging as low N11, 000 per flight when a one-way domestic ticket cost only N16, 000. While ticket prices today have gone up astronomically to as high as between N150,000 to N200,000 for a one way economy ticket owing to the prevailing economic circumstances, NAMAS’s navigational charges have remained the same since June 2008.
“Also, NAMA charges N50, 000 for every hour that it has extended services beyond the stipulated hours of service at aerodromes that do not have 24 hours service.
“In 2008 a litre of diesel was sold at around N113, today it is well over N1, 400 per litre which represents over 1,000% increase which makes the current charges unsustainable. Same goes with personnel costs and other costs.
“Currently, our unit rate for international flights charge for service provision is about $70; domestic flights are charged N6, 000. While, NAMA recognises 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 trainings.”
Based on the foregoing, Ahmed contended that “if NAMA is to survive and continue to guarantee safety and efficiency in the airspace, it must breathe!”
Musa said the minister’s intervention was based on the recognition of the current economic challenges faced by Nigerians.
“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,” he said.
He disclosed that the managing director had highlighted at the even 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,” he added.
The statement also said that NAMA would continue to engage the airlines which “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 honorable 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.
The suspension of the fee increase is a testament to the government’s responsiveness to public concerns and its commitment to balancing economic sustainability with the needs of its citizens,” Musa stated.
