NAMA set to increase navigation charges at airports by 800%

The Nigeria Airspace Management Agency (NAMA) has proposed an 800 per cent increase in navigation fees and charges at airports across the country.

The proposed new rates for en-route and terminal navigation charges will be reviewed from 2,000 and 6,000 Naira to 18,000 and 104,000 Naira per flight.

Additionally, the extension of service hours will be reviewed from 50,000 to 450,000 Naira per extension.

NaijaOnPoint.com.ng (NOP) reports Managing Director of NAMA, Mr Umar Farouk made the disclosure at the 28th edition of the League of Aviation and Airport Correspondents (LAAC) Conference, on Friday in Lagos.

According to Mr Farouk, the navigation fees and charges were last reviewed in 2008, adding that the new proposed 800% increase may come into effect by September 1 after a stakeholders’ meeting.

“This change will enable the Agency to recover the cost of diesel and other logistics,” Farouk said, while emphasising that ICAO Doc 9082 recommends cost recovery for service provision, which he said caters for the cost of equipment, personnel, training, and other ancillary costs.

He explained that NAMA operates without making a profit.

“NAMA has been charging as low as NGN11,000 per flight when a one-way domestic ticket cost only NGN16,000. While ticket prices today have risen to as high as NGN150,000 – NGN 200,000 Naira for a one-way economy ticket owing to the prevailing economic circumstances, NAMA’s navigational charges have remained the same since June 2008,” Farouk said.

He also mentioned some of the airspace managers’ fees and charges compared to the present situation.

“NAMA charges NGN 50,000 for every hour that it extends services beyond the stipulated hours of service at aerodromes that do not have 24 hours service. In 2008, a liter of diesel was sold at around NGN113. Today, it is well over NGN1,400 Naira per liter, which represents over 1,000% increase. This makes the current charges unsustainable.”

“Currently, our unit rate for international flights charge 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,” he added.

Moreover, addressing the Airline operators directly, Farouk said it is grossly unfair that pricing was skewed against the agency. He said there needs to be a symbiosis as airlines and NAMA need each other to thrive and an Increase in navigation fees will aid balance.

Farouk stressed that the industry requires efficient pricing of products and services. He further stressed it is a critical lever for enhancing affordability, driving competition, and supporting infrastructural development.

FG pledges to boost local airline operators’ capabilities

Meanwhile, speaking at the event, Minister of Aviation and Aerospace Development, Mr Festus Keyamo (SAN) pledged the federal government will formulate policies aimed at boosting the capacities of local airline operators.

Mr Keyamo also said that development of Maintenance Repair Organisation (MRO) facilities in some parts of the country was a priority of the government. According to him, MRO development will help in advancing the aviation industry.

He said that, already, investors from Europe, Asia, America and Middle East were talking with the Federal Government on how to invest in MRO.

Keyamo said that some bilateral air services agreement  had not benefitted Nigeria.

He expressed concerns that some carriers would have choice Nigeria routes  but would give Nigerian airlines second tier airports in their countries.

“Lufthansa is coming here but we are not going to Frankfurt.  Delta, United are coming from America but we are not going there. South Africa is coming here with no reciprocity,” he said.

Also speaking during the event, Dr Thomas Ogungbangbe, Chairman of the conference and Chief Executive Officer of CITA Aviation Fueling Ltd., said that the Nigerian aviation sector, like many others around the world, had been severely impacted by the macro-economic environment.

Ogungbangbe said that high cost of fuel, poor access to foreign exchange, weakening currency, and the constant need for maintenance and infrastructure improvement were some challenges to be surmounted.

He, however, said that the challenges also presented the country with a unique opportunity to innovate, collaborate and drive the industry forward.

“Nigeria, a nation with a population of approximately 250 million, has over 30 airports. Yet, only three of these airports are financially viable.

“This stark reality underscores a severe under-utilisation of our aviation infrastructure and highlights the need for a strategic shift in how we approach aviation sustainability.

“Passenger traffic in our sector is closely tied to economic activities. A robust economy generates increased business and leisure travel, leading to higher passenger volumes.

“Therefore, our focus must be on stimulating economic growth and activities that will, in turn, boost demand for air travel.

“This requires a concerted effort from all stakeholders, including the government, private sector and international partners.

“Investing in new airport projects while neglecting essential infrastructure like roads is counterproductive. Improved road networks facilitate easier access to airports, making air travel a more attractive option for our populace,” he said.

Ogungbangbe said there was need to stimulate economic growth, allocate resources efficiently, encourage public/private partnerships, develop integrated transport plans and promote Nigeria as a travel destination.

In his opening remarks, the Chairman of LAAC, Mr Suleiman Idris, reflected on  unforeseen economic downturns that  affected the aviation industry.

Idris identified poor access to foreign exchange, weakening currency, high fuel costs, high maintenance costs, decaying airport infrastructure, regulatory constraints and growing manpower demand as challenges.

He added that technology upgrades and passenger comfort were important for the growth of the aviation sector.

“The theme of this year’s conference was inspired by the challenging state of our economy, which has amplified the already existing constraints to growth and development of the country’s aviation sector,” he said.

Idris noted the capital-intensive nature of the aviation business, saying that  transactions for equipment acquisition, spare parts procurement, leasing, maintenance and manpower development would require foreign exchange.

The theme of this year’s conference was: “Aviation Survivability Amidst a Challenging Macro-Economic Environment”.

It was the 28th in its series and had  aviation agencies represented.