The Minister of Aviation and Aerospace Development, Festus Keyamo, has taken a critical stance against the Federal Competition and Consumer Protection Commission (FCCPC) for its recent public statement questioning the pricing and services of Air Peace. Labeling the FCCPC’s actions as “careless,” Keyamo argued that the agency acted without consulting the appropriate regulatory authority, the Nigeria Civil Aviation Authority (NCAA).
Keyamo’s Sharp Rebuke
In an interview with Arise TV on Sunday, Keyamo did not mince words. He expressed his disappointment with the FCCPC’s approach, emphasizing that its actions undermine efforts to bolster Nigeria’s struggling aviation sector.
“I think it was a very careless statement – I say that with all apology – by the agency,” Keyamo said. “They should have contacted the NCAA, which has the authority to regulate airline pricing and operations, instead of making public accusations. Singling out airlines without proper context risks harming their reputation globally, especially when we are trying to help them expand their capacity.”
The Bigger Picture: Capacity and Forex Challenges
Keyamo identified capacity limitations and foreign exchange volatility as the real culprits behind the challenges facing Nigerian airlines. He explained that airlines are grappling with rising costs linked to dollar-denominated expenses, including aircraft acquisition and maintenance.
“What we are facing is a problem of capacity—airlines struggle to acquire aircraft and maintain routes. This is exacerbated by the fluctuating exchange rate, which affects every aspect of aviation. Everything in this sector is dollar-based,” he noted.
The Minister assured Nigerians that the government is actively addressing these systemic issues. Initiatives include facilitating access to global financing options for airlines and implementing policies under the Cape Town Convention to improve compliance and attract favorable investment terms.
Strengthening Nigeria’s Aviation Sector
Keyamo revealed plans to lead a Nigerian delegation to Dublin to engage major aircraft financiers. This strategic move, he said, aims to secure better financing terms for airlines, thereby reducing operational costs and ticket prices.
“For the first time in history, Nigeria’s compliance score has improved from 49% to 75.5%, thanks to President Tinubu’s policies. This milestone has garnered global attention, with financiers now willing to collaborate with our operators. These efforts will ultimately make tickets more affordable for Nigerians,” Keyamo declared.
Balancing Consumer and Airline Interests
Keyamo acknowledged his dual responsibility to protect consumers while ensuring the survival of local airlines. He appealed to Nigerians for patience, stressing that the government is committed to addressing inefficiencies without compromising the viability of domestic carriers.
“In the last 40 years, over 100 airlines have failed in Nigeria. This administration is determined to reverse that trend. Unlike past policies that favored foreign carriers, we are focused on enhancing the capacity of our local airlines,” he said.
The Minister underscored the significance of this policy shift, framing it as a critical step towards stabilizing the aviation industry and fostering national economic growth.
A Call for Patience
Keyamo ended with an appeal: “We understand the frustrations of travelers, but we urge Nigerians to bear with us. We are tackling these issues head-on, working closely with airlines and global stakeholders. This government is making unprecedented efforts to ensure the survival and growth of our aviation sector.”
By addressing both regulatory missteps and structural challenges, Keyamo signaled a clear commitment to reform. His critical remarks serve as a reminder that safeguarding consumer interests and revitalizing the aviation industry are not mutually exclusive goals.
