NAMA Proposes 800% Navigation Charges Fee Increase From September 1

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The Nigeria Airspace Management Agency (NAMA) has proposed an 800% increase in navigation fees and charges, which were last reviewed in 2008. This may come into effect by September 1 after a stakeholders’ meeting.The proposed new rates for en-route and terminal navigation charges will be reviewed from 2,000 and 6,000 Naira to 18,000 and 104,000 Naira per flight. Additionally, the extension of service hours will be reviewed from 50,000 to 450,000 Naira per extension. This change will enable the Agency to recover the cost of diesel and other logistics.

Managing Director Engineer Ahmed Farouk made this announcement at the League of Airport and Aviation Correspondents (LAAC) Conference. The conference theme was “Aviation Survivability Amidst a Challenging Macro-Economic Environment.” He stated that without funds, the agency cannot discharge its safety responsibilities effectively.

Farouk emphasized that ICAO Doc 9082 recommends cost recovery for service provision. This caters to the cost of equipment, personnel, training, and other ancillary costs. He explained that NAMA operates without making a profit.

Farouk said, “NAMA has been charging as low as NGN11,000 per flight when a one-way domestic ticket cost only NGN16,000. While ticket prices today have risen to as high as NGN150,000 – NGN 200,000 Naira for a one-way economy ticket owing to the prevailing economic circumstances, NAMA’s navigational charges have remained the same since June 2008.”

He also mentioned some of the airspace managers’ fees and charges compared to the present situation. “NAMA charges NGN 50,000 for every hour that it extends services beyond the stipulated hours of service at aerodromes that do not have 24 hours service. In 2008, a liter of diesel was sold at around NGN113. Today, it is well over NGN1,400 Naira per liter, which represents over 1,000% increase. This makes the current charges unsustainable.”

“Currently, our unit rate for international flights charge for service provision is about $70. Domestic flights are charged 6,000 Naira. While NAMA recognizes the difficult economic environment aviation operates in Nigeria, it is equally a part of the ecosystem. It goes to the same market to procure equipment and other services like training. If NAMA is to survive and continue to guarantee safety and efficiency in the airspace.”

Moreover, addressing the Airline operators directly, Farouk said it is grossly unfair that pricing was skewed against the agency. He said there needs to be a symbiosis as airlines and NAMA need each other to thrive and an Increase in navigation fees will aid balance.

Farouk stressed that the industry requires efficient pricing of products and services. He further stressed it is a critical lever for enhancing affordability, driving competition, and supporting infrastructural development.

 

1 COMMENT

  1. Well said sir.This has been long overdue according to ICAO standards.The long years of no view, has plunge the Agency into lack of continuous training and retraining of its personnel.I suggest it’s review should be pegged at every two or three years interval, to keep the users abreast and to be ready for its financial implications. Keep doing a great job our MD/CE.

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