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IATA report sparks concerns over cost of flying in Nigeria

The recent classification of Nigeria by the International Air Transport Association as a country with aviation charges above global averages has revived debate within the industry, placing renewed focus on the cost of air travel in Africa’s largest economy.

In response, the Federal Airports Authority of Nigeria said while the assessment contains elements of truth, it does not fully capture the broader economic and structural factors shaping aviation pricing in the country.

The statement, signed by the authority’s spokesperson, Henry Agbebire, acknowledged that “IATA is not entirely wrong,” noting that aviation charges across Africa are estimated to be about 15 per cent higher than global averages, with Nigeria among the contributors to that pattern.

Agbebire added that a mix of taxes, fees and statutory levies, ranging from passenger service charges to API/PNR systems, now makes up a substantial share of ticket costs, in some instances accounting for as much as 60 to 70 per cent of total fares.

“FAAN said, “In Nigeria specifically, multiple cost pressures exist. Passenger service charges can reach between 80 and 100 per international passenger, with additional levies such as security and data charges becoming unavoidable.”

However, FAAN maintains that isolating these figures without broader context offers only a partial and potentially misleading picture of the situation.

“The real issue is not simply ‘high charges’. It is why those charges exist,” the authority stated, urging stakeholders to examine the historical context behind current pricing structures. “Some tariffs remained virtually unchanged for nearly two decades. Recent increases are, in fact, adjustments toward economic reality.”

Henry cited cargo charges as an example, noting that rates rose from N7 to N20 per kilogram but remain below the inflation-adjusted equivalent of N27.

Beyond tariffs, FAAN also highlighted wider macroeconomic pressures that materially affect airline operating costs but are frequently overlooked in global assessments.

“Blaming government charges alone ignores the elephant in the room. Jet fuel prices surged by over 270 to 300 per cent within months, while foreign exchange constraints, once trapping as much as $850m in airline funds, have heightened operational risks,” he noted.

FAAN said these factors , including fuel prices, foreign exchange volatility, and logistical challenges, often have a stronger influence on ticket fares than statutory charges, but are frequently underrepresented in international analyses.

The agency also highlighted what it called an infrastructural paradox, where industry stakeholders demand world-class facilities and safety standards while opposing the financial adjustments needed to achieve them.