The Nigerian Airspace Management Agency (NAMA) has said it will raise en-route navigational charges from N2000 and N6,000 to N18,000 and N54,000 per flight just as the airspace agency equally increased the extension of hours of service to airlines from N50,000 to 450,000. This represents 800 per cent increase per extension 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 on Friday at the League of Airports and Aviation Correspondent (LAAC) seminar theme, “Aviation Survivability amidst a Challenging Macro-Economic Environment,” held in Lagos.
Recall that NAMA and the Nigerian Civil Aviation Authority (NCAA) in January held a strategic meeting with some airline operators under the aegis of Airline Operators of Nigeria (AON) to review what has been described as the outdated N16,000 Terminal Enroute Navigational Charges (TNS).
The meeting held in Abuja was called at the instance of the NCAA and NAMA to get the understanding of the airlines on the review of the rate which the airlines admitted needed to be reviewed.
The implication of the action which NAMA took to cushion its high cost of airspace surveillance and security could further lead to astronomical increases in domestic airfares and by extension fares on international routes.
He noted that the industry requires very efficient pricing of products and services, stressing that it is a critical lever for enhancing affordability, driving competition, supporting infrastructural development, promoting sustainability, and improving operational efficiency.
He however noted that the price for services must reflect the value of these services.
He said, “The Nigerian Airspace Management Agency relies on statutory fees for the management of the airspace (remember that aviation takes place only in the air). These funds are generated from services we provide to the flying community, without these funds NAMA can’t discharge its responsibility of ensuring the safety of our airspace effectively. We majorly generate these funds through the airline companies.”
Farouk further disclosed that for 2023, NAMA had an expenditure of about N21 billion in personnel costs alone, over N12 billion in capital costs and over N10 billion in overhead costs, adding that all these were to be (and were) funded from fees (no FGN budgetary allocation).
