Exorbitant Air Ticket Prices: Time To Act - By Abubakar K. Yakubu

Nigeria is a country deeply rooted in tradition, culture and communal life. One enduring feature of our national life is the annual movement of people from urban centres back to their ancestral homes and villages during festive periods, particularly Christmas and the New Year. This seasonal migration is more than leisure travel; it is a reaffirmation of identity, kinship and belonging.

 

For decades, road transportation was the preferred option for the majority of Nigerians undertaking this journey, largely because of its relative affordability and accessibility. Air travel, by contrast, was viewed as a luxury reserved for a few.

 

However, the realities of present-day Nigeria have dramatically altered this long-standing pattern. Rising insecurity across major highways—manifesting in banditry, kidnapping, armed robbery, and violent attacks—has transformed what should be a joyful homecoming into a perilous undertaking.

 

 

For many Nigerians, travelling by road during festive periods has become akin to a suicide mission. Families now weigh not just the cost of transport, but the value of human life. Unsurprisingly, those who can afford it increasingly turn to air travel as the safer alternative.

 

It is within this context that the current crisis of exorbitant air ticket prices must be understood. Nigerian airlines, operating in a market marked by limited capacity and heightened seasonal demand, have taken advantage of this desperate situation to impose outrageous fares on passengers. Reports of a one-way, one-hour domestic flight costing as much as N600,000 have become disturbingly common. This amount, which translates to roughly $400, is far beyond the reach of the average Nigerian worker and is grossly disproportionate to local income levels. What should ordinarily be a routine domestic journey has effectively become the preserve of the very wealthy. This development has rightly attracted public outrage and widespread condemnation. Nigerians from all walks of life—civil servants, professionals, traders, students and retirees—have expressed concern that air travel within their own country now costs more than international flights to neighbouring African states or even parts of Europe and the Middle East. The question that naturally arises is whether this situation is inevitable, or whether the government and relevant regulatory institutions have a responsibility to intervene in the public interest.

 

 

Following mounting complaints, the Minister of Aviation and Aerospace Development, Mr Festus Keyamo (SAN), addressed State House correspondents after a meeting of the Federal Executive Council (FEC) presided over by President Bola Ahmed Tinubu at the Presidential Villa on Wednesday, December 10. In his remarks, the minister explained that Nigeria operates a deregulated aviation industry, a policy that dates back to the era of General Ibrahim Badamasi Babangida. According to him, deregulation grants private airlines the freedom to set their own ticket prices, and the government, therefore, lacks the legal power to fix fares for private enterprises.

 

While this explanation is factually correct, it is incomplete and potentially misleading if taken at face value. Deregulation does not mean absence of regulation. Rather, it implies a shift from rigid, direct government control to a framework of smart, appropriate and responsive regulation that aligns with the level of competition in the industry. In economic theory, regulation is often reduced as competition increases on the assumption that competitive forces will protect consumers from exploitation.

 

However, perfect competition is a theoretical ideal that rarely exists in practice, particularly in capital-intensive industries such as aviation. The Nigerian aviation sector is characterised by high barriers to entry, limited operators, fragile financial structures and heavy dependence on imported inputs such as aircraft, spare parts, insurance and aviation fuel. In such a market, the risk of collusion—whether explicit or tacit—is significant. Airlines can easily mirror one another’s pricing behaviour, especially during peak periods, thereby neutralising competition and imposing uniformly high fares on consumers. Under these conditions, it would be irresponsible for the government to fold its arms and watch Nigerians being exploited under the guise of deregulation. It is important to clarify institutional roles in addressing this challenge.

 

While the Ministry of Aviation and Aerospace Development provides policy direction, it is not expected to directly intervene in pricing decisions. That responsibility lies primarily with the Nigerian Civil Aviation Authority (NCAA), the statutory regulator charged with oversight of civil aviation in Nigeria.The NCAA mandate extends beyond safety and licensing to include economic regulation of airlines, airports and airspace. This economic regulatory function empowers the authority to address issues such as unfair pricing, consumer protection and market abuse.

 

Contrary to some misconceptions, economic regulation does not necessarily require the NCAA to fix ticket prices. What it can and should do is establish a framework that prevents excessive pricing and protects consumers from exploitation. One viable policy tool in this regard is the introduction of a price cap for domestic flights, particularly for short-haul routes such as one-hour flights. A price cap refers to a government-imposed maximum price that service providers are legally allowed to charge for a specific good or service. Its purpose is not to stifle business, but to prevent exploitation and excessive charges in markets where competition is weak or distorted. For a price cap to be effective and credible, it must be based on rigorous analysis.

 

The NCAA should undertake a comprehensive cost study of domestic airline operations, taking into account factors such as fuel costs, aircraft leasing, maintenance, crew, insurance, airport charges and reasonable profit margins. In addition, a benchmark study of countries with similar socio-economic conditions and aviation environments should be conducted.

 

Transparency is critical in this process, as is extensive stakeholder engagement involving airlines, consumer groups, labour unions and independent experts.

 

A brief comparative analysis of airfares in selected African countries is instructive. In Kenya, for example, a one-hour domestic flight between Nairobi and Kisumu typically costs the equivalent of N70,000 to N120,000, depending on the season and booking time. In Ghana, flights between Accra and Kumasi—lasting less than an hour—often range between N80,000 and N150,000. In South Africa, a one-hour flight between Johannesburg and Durban may cost between N100,000 and N180,000, even in peak periods. In Ethiopia, domestic flights operated by Ethiopian Airlines on similar routes are relatively affordable, often falling within the N60,000 to N120,000 range.

 

While these countries face their own economic challenges, none exhibits the extreme pricing levels currently witnessed in Nigeria. This suggests that factors beyond cost recovery are at play in the Nigerian context. It reinforces the argument that regulatory intervention, in the form of price caps or other economic control measures, is both justified and necessary.

 

Beyond the NCAA, the Federal Competition and Consumer Protection Commission (FCCPC) has a crucial role to play. The FCCPC is statutorily mandated to prevent and eliminate anti-competitive practices such as price fixing, cartel behaviour and abuse of market dominance. It is also responsible for protecting consumer rights and safeguarding the public from unfair, deceptive, fraudulent, or unconscionable market practices. If airlines are found to be colluding to fix prices or engaging in exploitative conduct, the FCCPC has both the authority and the obligation to investigate and sanction such behaviour.

 

The broader implications of unchecked airfare hikes cannot be ignored. Exorbitant ticket prices exacerbate social inequality by restricting safe travel to a privileged minority. They undermine national cohesion by preventing citizens from participating in cultural and family events. They also fuel public anger and resentment, particularly when citizens perceive that the government is indifferent to their plight. In extreme cases, such frustrations can translate into protests, unrest and a breakdown of trust in public institutions.

 

It must also be recognised that the current situation places airlines themselves at long-term risk. While short-term profits may be realised during peak seasons, sustained public backlash and regulatory intervention could ultimately harm the industry.

 

A balanced approach that ensures affordability, sustainability and profitability is, therefore, in the interest of all stakeholders. In addressing this crisis, each stakeholder has a role to play. The NCAA must assert its economic regulatory mandate by initiating cost and benchmark studies, engaging stakeholders and establishing reasonable price caps where necessary. The FCCPC must actively monitor the aviation market for anti-competitive behaviour and enforce consumer protection laws without fear or favour. The Ministry of Aviation should provide clear policy support for these actions and resist undue pressure from vested interests. The National Assembly also has a critical responsibility. As the custodian of legislative oversight, it should conduct public hearings on the state of the aviation industry, review existing laws to ensure they adequately empower regulators and, where necessary, amend legislation to strengthen consumer protection. Lawmakers must remember that they represent the interests of the Nigerian people, not corporate entities.

 

Finally, airlines themselves must act responsibly. Corporate Social Responsibility (CSR) should not be an empty slogan. In a country grappling with insecurity, inflation and declining real incomes, exploiting citizens during festive periods is morally indefensible. Airlines must recognise that their long-term survival depends on public goodwill as much as on financial performance.

 

In conclusion, the issue of exorbitant air ticket prices in Nigeria is not merely an aviation problem; it is a national concern that touches on safety, equity, economic justice and social stability. Deregulation does not absolve the government of its duty to protect citizens from exploitation. On the contrary, it demands smarter, more responsive regulation. The time to act is now. Nigerians deserve affordable, safe and fair access to air transportation, especially during periods when alternative modes of travel are fraught with danger. Anything less is a failure of governance.

 

Dr Yakubu, a chartered accountant, writes from Abuja.