Minister of Aviation and Aerospace Development, Festus Keyamo, has clarified that the federal government has no legal authority to regulate or fix ticket prices for privately owned airlines, even as Nigerians continue to express frustration over the sharp rise in domestic airfare.
Speaking during an interview on Arise TV, Keyamo explained that the aviation sector operates under a fully deregulated framework. According to him, this structure places fare determination entirely in the hands of airline operators, who set prices based on market forces, operational realities and fluctuating economic pressures.
“The government has absolutely no power to fix prices for private enterprises, including the aviation industry,” Keyamo said. He noted that ticket pricing falls strictly within the purview of airlines whose decisions are influenced by factors such as the cost of aviation fuel, aircraft maintenance, spare parts, forex shortages and overall demand.
Keyamo added that although many Nigerians have called for government intervention as ticket prices continue to soar across routes, the ministry cannot impose price caps or force airlines to reduce fares. Instead, the government can only focus on providing a more supportive environment through improved infrastructure, regulatory oversight and long-term sector reforms.
He stressed that deregulation remains the global standard for the aviation industry, allowing airlines to adjust prices in response to their financial obligations and prevailing economic conditions. “People must understand that these prices reflect operational considerations within the industry. Airlines are reacting to the realities they face,” he said.
The Minister further assured Nigerians that the government is working behind the scenes to stabilise the environment in which airlines operate. However, fare adjustments will continue to be the exclusive decision of airline operators as long as deregulation remains in place.
Keyamo assured that the government will continue engaging industry players to improve aviation services, but stressed that any changes to ticket pricing will remain entirely at the discretion of private airline operators.
