The Group Managing Director of Finchglow Holdings, Bernard Bankole, has attributed the sharp rise in airfares across the country to multiple charges imposed by regulatory and government agencies rather than airline operators.
Speaking at the just-concluded annual media engagement of Finchglow Holdings in Lagos, Bankole explained that although many travellers blame airlines for high ticket prices, most of the cost burden comes from statutory levies collected on behalf of agencies such as the Nigerian Civil Aviation Authority, the Federal Airports Authority of Nigeria, the Nigerian Airspace Management Agency, and the Nigerian Safety Investigation Bureau.
He said, “Air tickets are expensive here, yes, it’s expensive in Nigeria. When you look at the ticket price, let me say N1,000 just for analysis, N450 goes to charges. So the airline is just collecting on behalf of everybody. Only N550 goes to the airline. The NCAA, FAAN, NSIB, and NAMA take some part of the money. Those are the things putting pressure on the cost of tickets.”
Bankole appealed to the government to review and reduce these levies, warning that the cumulative cost is ultimately transferred to passengers. He added that the financial strain is further worsened by the high number of federal airports that struggle to generate sufficient revenue.
“As of the last count, we have 22 federal airports. Every state that wants to have an airport is embarking on a capital project,” he said, stressing that the system is overburdened.
Meanwhile, the Managing Director of Travelden, Mr Gbenga Onitilo, urged the federal and state governments to check the indiscriminate price hikes by hotel owners and service providers during the festive season. He warned that unchecked profiteering, especially during the popular ‘Detty December’ period, could threaten Lagos’ growing December tourism economy.
‘Detty December’, Nigeria’s peak end-of-year tourism season, has attracted thousands of diaspora returnees and international visitors in recent years, significantly boosting economic activities, particularly in Lagos. In 2024, the Lagos State Government reported that the festivities generated over $71.6m, about N54bn at the time, in revenue.
Onitilo cautioned that excessive pricing by hotels and short-let apartment operators could reduce visitor enthusiasm for the 2025 celebrations.
“Pricing is one of the things that I think the government should be able to look at. Ghana has been able to do that. Rwanda has been able to do stuff. You create an ecosystem around it. It is not just about the hotel and tourism people alone.
“It is about all the ecosystems that surround it, whether it is nightlife, transportation, or shopping. It starts with big players. People providing these services must be reasonable enough to understand. The prices of rentals for some of these apartments are not just reasonable,” he said.
