The Nigerian Civil Aviation Authority (NCAA) has taken proactive measures to tackle the persistent rise in airfare prices. In a recent statement, Chris Najomo, the Acting Director-General of NCAA, announced the formation of a specialized committee tasked with reducing the cost of air travel.
In a tweet from his official handle, Najomo expressed concern over the escalating airfare rates, particularly on international routes. He emphasized the authority’s commitment to addressing this issue by establishing a high-powered committee dedicated to analyzing various factors impacting fares and devising strategies to bring them down.
“We have engaged with airlines, stakeholders, and relevant agencies to ensure effective collaboration in achieving our objective,” Najomo stated. “Rest assured, we will leave no stone unturned in our pursuit of affordable airfares.”
This development comes at a time when the Nigerian government is actively working towards settling outstanding repatriation payments owed to foreign airlines. Recent data from the Central Bank of Nigeria reveals that foreign airlines repatriated a total of N795.48 billion within a six-month period.
The Central Bank’s Balance of Payment compilation discloses that airlines withdrew $1.76 billion (equivalent to N451/$) as debits during the first and second quarters of 2023. Notably, passenger ticket expenses accounted for N779.61 billion, while cargo and other expenditures amounted to $10.22 billion and N5.65 billion, respectively. Additionally, the Balance of Payment account received $19.39 million (equivalent to N8.75 billion) as credit from airline travel.
In its explanatory note titled “Note D, Balance of Payments,” the apex bank defines the concept as a comprehensive record of economic and financial transactions between residents and non-residents over a specified period.
By establishing a committee to address airfare costs, the NCAA aims to facilitate sustainable and affordable air travel for the Nigerian populace. The collaborative efforts with all relevant stakeholders demonstrate the authority’s commitment to enhancing the aviation sector’s overall efficiency and accessibility.