December 08, (THEWILL) – The Minister of Aviation and Aerospace Development, Festus Keyamo, has described as “careless” the recent statement by the Federal Competition and Consumer Protection Commission (questioning the pricing methodology of Nigerian airline **Air Peace**.
Keyamo expressed displeasure over the FCCPC’s decision to go public without first consulting the Nigeria Civil Aviation Authority which he described as the primary regulator of the aviation industry.
The FCCPC had summoned executives of Air Peace last week to address allegations of price gouging and poor service delivery.
However, Keyamo, in an interview on Sunday, criticised the approach, asserting that proper protocol was not followed.
He said, “I think it was a very careless statement – I say that with all apology – by the agency.
“Making such a statement without consulting the core agency involved in regulation, which is the NCAA, was inappropriate. The NCAA is responsible for regulating airlines, including overseeing their pricing strategies. It would have been better for FCCPC to liaise with the NCAA for clarification before making public accusations.”
Keyamo further explained that the perceived pricing issues were not a result of exploitation but were tied to structural challenges in the aviation sector.
“What we are facing is a problem of capacity — the ability of airlines to acquire aircraft and efficiently service their routes,” he said.
He also cited external factors such as the volatile exchange rate, which significantly impacts aviation operations since most expenditures in the sector are dollar-based.
Nigerian airlines, he noted, often rely on **wet leasing** (hiring aircraft from foreign operators), which adds to operational costs due to the fluctuating naira-dollar exchange rate.
To address these challenges, Keyamo revealed ongoing efforts to ease the cost of aircraft acquisition and improve airline capacity. This includes leveraging the Cape Town Convention to negotiate better terms for accessing aircraft.
“President Bola Ahmed Tinubu and Vice President Kashim Shettima have supported policies aimed at addressing the core issues in aviation,” he said.
According to Keyamo, these measures have raised Nigeria’s compliance score in the aviation industry from **49% to 75.5%**, a historic achievement.
Keyamo also disclosed plans to lead a Nigerian delegation to Dublin in January 2024 to meet with global airline financiers.
“For the first time, Nigeria has been invited to Dublin to discuss access to aircraft under favourable terms. This is a direct result of our efforts to improve market access and ensure cost-effective operations for Nigerian airlines. These engagements will positively impact ticket prices and operational efficiency,” he said.
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
