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NAMA announces an 800% increase in air navigation charges, raising fees from N2,000 to N18,000 per flight and extension costs from N50,000 to N450,000. This move, driven by rising operational costs, is expected to lead to higher airfares for both domestic and international flights in Nigeria.

The Nigerian Airspace Management Agency (NAMA) has announced a substantial increase in its en-route navigational charges, raising them from N2,000 and N6,000 to N18,000 and N54,000 per flight, respectively. This move also includes a dramatic 800% hike in the cost of extending operational hours, now set at N450,000, up from N50,000. The decision, disclosed by NAMA's Managing Director Umar Ahmed Farouk at a seminar in Lagos, aims to cover the rising costs of diesel and logistics associated with extending service hours.

NAMA's financial struggles, exacerbated by a lack of FGN budgetary support, have led to this drastic measure. Farouk highlighted that the agency has faced significant financial pressure, with an annual expenditure of about N21 billion on personnel, over N12 billion on capital costs, and more than N10 billion in overheads. The last adjustment in navigational charges occurred in June 2008, while ticket prices have surged, with one-way domestic flights now costing between N150,000 to N200,000.

The increase in charges is expected to result in higher airfares, both for domestic and international flights. This move follows a strategic meeting in January with airline operators, which acknowledged the need for updated charges but did not foresee such a steep rise. Farouk emphasized that the fees are necessary to ensure continued safety and efficiency in Nigerian airspace, as mandated by international best practices.

With this increase, NAMA aims to balance its budget while maintaining its critical role in aviation safety and infrastructure development. However, stakeholders are concerned about the potential impact on passenger costs and the broader aviation industry.