Business a.m.
The Nigerian Airspace Management Agency (NAMA) has announced the suspension of its planned 800 percent increase in navigational charges, originally scheduled to take effect on September 1, 2024. The decision to suspend the increase was reportedly taken after the intervention of Festus Keyamo, the minister of aviation and aeronautical development, who instructed the agency to suspend the plan.
NAMA, in a statement signed by Abdullahi Musa, the director, public affairs and consumer protection, explained: “In response to the directive from the Honorable Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, the Nigerian Airspace Management Agency (NAMA) has suspended its earlier announced increase in navigational charges. This decision follows the Minister’s recognition of the current economic challenges faced by Nigerians.
The Minister emphasized the need for further consultation before implementing any changes, highlighting the importance of being sensitive to the plight of Nigerians amidst these economic challenges.”
The agency stated that the decision follows the keynote address by 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, themed “Aviation Survivability amidst a Challenging Macro-Economic Environment”.
In his address, Farouk highlighted the significant economic pressures faced by the aviation industry, exacerbated by global economic volatility, fuel price hikes, and currency instability. He also outlined strategies for survival and growth, including operational efficiency, embracing innovation and technology, strengthening infrastructure, and fostering collaboration and partnerships.
Farouk discussed further the financial challenges NAMA faces, noting that the agency relies on statutory fees and charges for managing the airspace. The Nigerian airspace management agency had proposed an increase in its fees and charges to sustain its operations and ensure the safety and efficiency of Nigeria’s airspace.
The statement added: “The new unit rate/minimum charge for en-route was set to increase to 18,000 Naira from 2,000 Naira per flight while the unit rate/minimum charge for terminal navigation charge(TCN domestic) were to rise to 54,000 Naira from 6,000 Naira per flight with effect from the 1st of September.
The Nigerian Airspace Management agency would continue to engage the airlines, who have been responding to the prevailing economic situation since 2008 without taking NAMA into consideration, which is supposed to be a cost recovery agency in line with global practices.”
According to NAMA, the directive from the minister and the subsequent suspension of the planned increase underscore the government’s commitment to addressing the concerns of Nigerian citizens and stakeholders in the aviation sector.
It also noted that the suspension of the fee increase is a testament to the government’s responsiveness to public concerns and its commitment to balancing economic sustainability with the needs of its citizens.
