The soaring cost of airline tickets in Nigeria is largely due to multiple regulatory and government-imposed charges, industry experts have said, rather than the airlines themselves.
Bernard Bankole, Group Managing Director of Finchglow Holdings, highlighted this during the company’s annual media engagement in Lagos. He explained that while passengers often blame airlines for expensive tickets, a significant portion of the fare is actually collected on behalf of agencies such as the Nigerian Civil Aviation Authority (NCAA), the Federal Airports Authority of Nigeria (FAAN), the Nigerian Airspace Management Agency (NAMA), and the Nigerian Safety Investigation Bureau (NSIB).
“Using a simple example, if a ticket costs N1,000, nearly N450 goes to these agencies,” Bankole said. “The airline only retains the remaining N550. The levies imposed by these bodies are what really push ticket prices higher.”
Bankole urged the government to consider reviewing these charges, noting that the growing number of federal airports currently at 22 further strains the system financially, as many struggle to generate sufficient revenue.
Meanwhile, Mr. Gbenga Onitilo, Managing Director of Travelden, raised concerns over rising costs in the hospitality sector during Nigeria’s festive season. He warned that excessive hotel and short-let apartment rates during the popular ‘Detty December’ celebrations could discourage visitors and hurt Lagos’ seasonal tourism economy.
“Pricing should be managed carefully to create a healthy ecosystem that includes hotels, nightlife, transport, and shopping,” Onitilo said. “Unchecked increases could reduce the enthusiasm of tourists and returnees who drive the December economy.”
In 2024, Lagos recorded over $71.6 million (around N54 billion) in revenue from festive activities, highlighting the importance of reasonable pricing to maintain the city’s appeal to visitors.
