The Nigerian Airspace Management Agency (NAMA) has announced a substantial increase in service fees for airlines, raising charges for extending service hours by 800 percent—from N50,000 to N450,000. This decision, aimed at covering rising costs for diesel and other logistics, was disclosed by Umar Farouk, Managing Director of NAMA, during the League of Airports and Aviation Correspondents seminar in Ikeja, Lagos, on Friday.
Farouk also revealed that en-route navigational charges will increase from N2,000 and N6,000 to N18,000 and N54,000 per flight. The significant hike in extension fees suggests that airfares could potentially rise by as much as 800 percent.
Earlier this year, NAMA and the Nigerian Civil Aviation Authority revisited the outdated N16,000 terminal en-route navigational charges with airline operators.
Farouk emphasized that NAMA relies heavily on these statutory fees to manage the airspace effectively, stating, “Without these funds, NAMA can’t ensure the safety of our airspace.”
He highlighted that in 2023, NAMA’s operational costs totaled approximately N21 billion in personnel expenses, over N12 billion in capital costs, and more than N10 billion in overheads, all without federal budgetary support.
With domestic ticket prices soaring to between N150,000 and N200,000, Farouk noted that NAMA’s navigational charges have remained unchanged since June 2008. “Given the current economic conditions, these adjustments are necessary for NAMA to continue its operations and ensure airspace safety and efficiency,” he explained.
Farouk also stated that the proposed increases will raise en-route and terminal navigation charges to N18,000 and N54,000 per flight, respectively, while service hour extension charges will jump to N450,000. He concluded that most of NAMA’s revenue comes from these charges, with international flights paying in US dollars and domestic flights in Nigerian currency.
These fee adjustments are expected to significantly impact the cost structure for airlines operating in Nigeria, potentially affecting ticket prices and the overall aviation industry economy.
