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NAMA suspends planned increase in navigation charges

by Present Nigeria
July 30, 2024
in Business
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NAMA announces plan to raise airline charges by 800%
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Nigerian Airspace Management Agency, NAMA, on Monday, suspended its proposed increment of en-route navigation charges.

Last week, NAMA said it was proposing the increase of en-route navigation charges from N2,000 and N6,000 to N18,000 and N54,000 per flight.

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However, the agency, in response to the directive from Minister of Aviation and Aerospace Development, Mr Festus Keyamo, has put the decision on hold.

Director of Public Affairs and Consumer Protection, Mr Abdullahi Musa, in a statement, said the decision followed the Minister’s recognition of the current economic challenges faced by Nigerians.

Musa stated that the development was a testament to government’s responsiveness to public concerns and its commitment to balancing economic sustainability with the needs of its citizens.

The statement reads: “The Minister emphasised the need for further consultation before implementing any changes, highlighting the importance of being sensitive to the plight of Nigerians amidst these economic challenges.

“This decision follows the keynote address by Engr. 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. The theme of the conference was: ‘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 outlined strategies for survival and growth, including operational efficiency, embracing innovation and technology, strengthening infrastructure, and fostering collaboration and partnerships.

“Farouk also discussed 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 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 N54,000 from N6,000 per flight with effect from September 1.

‘NAMA 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.

“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.”

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PRESENT, a credible online newspaper from the cell of Red Carpet Communications Limited, is published by an experienced and profoundly resourceful journalist, Yemi Olowolabi.
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