The Federal Government is set to raise charges for aviation services, despite ongoing complaints from the Airline Operators of Nigeria about multiple taxation issues. Umar Farouk, Managing Director of the Nigerian Airspace Management Agency (NAMA), announced the planned increases on Friday during a seminar hosted by the League of Airports and Aviation Correspondents in Ikeja, Lagos.

Increased Charges:

• En-route navigational charges will rise from N2,000 and N6,000 to N18,000 and N54,000 per flight.
• The cost for extending service hours will increase from N50,000 to N450,000 per extension, reflecting an 800% rise. This adjustment is intended to cover rising costs of diesel and other logistics.

Impact on Airfares:
The increase in charges is expected to cause airfares to soar by up to 800%, compounding existing financial pressures on airlines and passengers.

Background:
Earlier this year, NAMA and the Nigerian Civil Aviation Authority (NCAA) held a strategic meeting with airline operators to address what were described as outdated navigational charges. Farouk highlighted that NAMA relies on statutory fees to manage airspace safety and that these funds are crucial for its operations.

In 2023, NAMA reported spending approximately N21 billion on personnel costs, over N12 billion on capital costs, and more than N10 billion on overheads, all without Federal Government budgetary support. Farouk noted that despite significant increases in operational costs—many of which have risen by over 1,000%—NAMA’s charges had remained static since June 2008.

Current Charges and Economic Context:

• The current rate for international flights is about $70, while domestic flights are charged N6,000.
• Farouk pointed out that the price of a one-way domestic ticket has skyrocketed to between N150,000 and N200,000 due to the prevailing economic conditions, yet NAMA’s fees have not been adjusted accordingly.

Challenges and Justification:
Farouk stressed that while NAMA recognizes the tough economic climate, it must adjust its fees to maintain safety and efficiency in airspace management. The agency argues that increased charges are necessary for its survival and continued effective operation.