The inflation in the money market continues to make the economy unbearable for trading activities to excel whereby there has been a significant increase in the transportation industry. The Nigerian aviation sector has reported hiked airfare by airline operators based in Nigeria’s North-central geographical area such as Taraba state, Kebbi state, and Kogi state to have recorded the highest charge per trip.
Due to economic turmoil thriving locally in line with international economic inflation, the airline business started experiencing fiscal turbulence in April 2022. According to the Transport Fare Watch (TFW) report, the hike in airfare is exclusive to certain plied routes, such as Abuja, Lagos, Port Harcourt, etc. The TFW is a subsequent task force organized by the National Bureau of Statistics (NBS) as a local watchdog in the transportation industry.
The TFW reported the range of hiked airfare according to their localization such as Taraba, Kogi, and Kebbi which are recently recorded in the NBS list of states with hiked airfare. The NBS’ transport fare watch-list has two sections such as states with the highest and lowest airfare, including, Taraba state (N65,000), Kogi (N64,260), and Kebbi (60,850). While the likes of other local airline businesses localized in Edo, Bauchi, and Kano sells flight ticket for half a hundred thousand Naira.
Airline operators based in the affected states with hiked airfare have reportedly consented to the Nigerian government to ease the economic crisis by tackling the instigator of the bearish economy tied with the Naira exchange rate with foreign currency. Aside from the outrageous airfare surge in the Nigerian Central-Northern geographic space, other regional airline operators based locally also experienced a %19 airfare increase per MoM business analysis.
Meanwhile, the NBS’s report revealed that the current airfare surge has been significant since the post-pandemic season that introduce global inflation. According to the NBS report by TFW, the Nigerian aviation sector has experienced a 52% hike price of flight tickets since the previous fiscal year. The post-pandemic season also influence strict cross-border policy that further escalated the shortage of aviation fuel distribution and other socio-economic aviation-related setbacks.
“Even if the aviation fuel is made available, there must be a review to reflect the minimal operational cost. We are offering patriotic services to the nation and understand the essential part of it. We are part of this economic development process in Nigeria but it is coming at a very huge sacrifice.” The Airline Operators of Nigeria (AON) chairman, Professor Obiora Okonkwo, revealed how it is in the industry and “nothing less than N100,000, between N100,000 and N120,000 base price, even with Jet A1 fuel at N400 – N500.”
The local aviation companies cannot risk experiencing accidents of passenger aircraft due to inadequate aircraft maintenance influenced by a shortage of aviation fuel, but rather increase the price of flight services for provisional aircraft maintenance and profit earnings. Nigerian airline operators have reportedly consented to the feds to curb the shortage of socio-economic resources to standardize the airfares of local trips at the range of N50,000 per ticket.
Other airline operators have reportedly applied a strategic business scheme to accept payment with the American dollar to conceal the hiked airfare. This policy is influenced by the shortage of foreign currency for local exchange. Aviation companies intend to make a profit amidst other companies experiencing regressive revenue income.
