EXORBITANT AIR TICKET PRICES: TIME TO ACT

 ABUBAKAR K. YAKUBU argues the need for airlines to shun exploitation of passengers, particularly during festive periods

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 ₦600,000 have become disturbingly common. This amount, which translates to roughly 400 US dollars, 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 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’s 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 ₦70,000 to ₦120,000,

depending on the season and booking time. In Ghana, flights between Accra and Kumasi—lasting less than an hour—often range between ₦80,000 and ₦150,000. In South Africa, a one-hour flight between

Johannesburg and Durban may cost between ₦100,000 and ₦180,000

when converted to naira, even in peak periods. In Ethiopia, domestic

flights operated by Ethiopian Airlines on similar routes are relatively

affordable, often falling within the ₦60,000 to ₦120,000 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 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 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 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