Minister ignores NAMA and orders agency to suspend navigation fees

The Minister of Aeronautics and Space, Mr Festus Keyamo, has reversed the decision of the Nigerian Airspace Management Authority (NAMA) to increase navigation fees for en-route flights from N6,000 to N18,000 or N54,000 per flight.

The Minister has directed the Agency to suspend the previously announced increase in shipping fees. With this decision, the Minister recognises the current economic challenges facing Nigerians.

The Minister stressed that further consultations are needed before any changes are implemented and stressed the importance of taking into account the plight of Nigerians in the face of these economic challenges.

This decision followed the keynote address by Eng. Farouk Ahmed Umar, Managing Director/CE of NAMA, at the League of Airports and Aviation Correspondents Annual Conference held in Lagos on July 26, 2024. The conference theme was “Aviation Survivability in a Challenging Macroeconomic Environment”.

Umar had said that the agency relies on statutory fees to manage airspace (remember, aviation only happens in the air). These funds are generated through services we provide to the aviation community. Without these funds, NAMA cannot discharge its responsibility to effectively ensure the safety of our airspace. We generate these funds largely through the airlines.”

“The majority of NAMA’s revenue comes from route navigation fees (domestic and international flights) and terminal navigation fees (domestic and international flights). While international flights are paid in US dollars, domestic flights are paid in the Nigerian currency.”

In his address, Mr Farouk highlighted the significant economic pressures facing the aviation industry, exacerbated by global economic volatility, rising fuel prices and currency instability. He outlined strategies for survival and growth, including operational efficiency, leveraging innovation and technology, strengthening infrastructure and promoting collaboration and partnerships.

Umar also spoke on the financial challenges facing NAMA, pointing out that the agency relies on statutory fees to manage airspace. The Nigerian Airspace Management Agency had proposed an increase in its fees to sustain its operations and ensure the safety and efficiency of Nigerian airspace. The new unit rate/minimum fare for en route flights was to increase from 2,000 naira to 18,000 naira per flight, while the unit rate/minimum fare for Terminal Navigation Fee (TCN domestic flights) was to increase from 6,000 naira to 54,000 naira per flight, effective September 1.

In a statement, NAMA Director of Public Affairs and Consumer Protection Abdullahi Musa said NAMA would continue to work with airlines that have responded to the prevailing economic situation since 2008 without regard to NAMA, which is supposed to be a cost recovery agency in line with global practices.

The Minister’s directive and subsequent suspension of the planned increase, he said, underscored the government’s commitment to address the concerns of Nigerian citizens and aviation sector stakeholders.

He pointed out that the suspension of the fee increase is evidence that the government is responding to public concerns and is committed to balancing economic sustainability with the needs of citizens.

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