Keyamo Slams FCCPC’s Remarks on Air Peace Pricing, Urges Collaboration with NCAA

Nigeria’s Minister of Aviation and Aerospace Development, Festus Keyamo, has criticized the Federal Competition and Consumer Protection Commission (FCCPC) for its public statement questioning the pricing methodology of Nigerian airline Air Peace. Describing the remarks as “careless,” Keyamo emphasized the importance of collaboration with the Nigeria Civil Aviation Authority (NCAA) before making such public pronouncements.

Speaking in an interview with ARISE NEWS on Sunday, Keyamo stated:

> “I think it was a very careless statement – I say that with all apology – by the agency, making such a statement without consulting the core agency involved in regulation, which is the NCAA. The power to regulate these airlines and oversee their pricing decisions is domiciled in NCAA. They should have contacted NCAA to review the situation, which we have been monitoring closely.”

The FCCPC’s comments followed its recent meeting with Air Peace executives to address allegations of price gouging and poor service delivery. Keyamo expressed disappointment, stating that the FCCPC’s actions risk undermining efforts to enhance the capacity and reputation of Nigerian airlines.

The minister clarified that the challenges facing the aviation sector were not rooted in exploitation but in systemic issues such as airline capacity constraints, foreign exchange volatility, and the costs associated with aircraft acquisition.

> “What we are facing is a problem of capacity – the ability of airlines to acquire aircraft and maintain routes. Most of their operational costs are foreign exchange-based, from aircraft leases to maintenance. With the naira’s fluctuating value against the dollar, it is inevitable that ticket prices are affected,” he explained.

To address these challenges, Keyamo revealed ongoing government efforts to improve the aviation industry. He highlighted the implementation of policies under the Cape Town Convention that have improved Nigeria’s compliance score from 49% to 75.5%, marking a significant achievement in the sector’s history.

Additionally, Keyamo announced plans to lead a Nigerian delegation to Dublin in January 2025. The delegation will meet with major global airline financiers to secure better aircraft leasing terms, which he believes will ultimately reduce ticket prices and operational costs.

> “For the first time, Nigeria has been invited to Dublin, where the world’s top airline financiers will gather. This recognition reflects the progress made under the policies of President Bola Ahmed Tinubu and the Vice President. By improving access to affordable aircraft financing, we aim to strengthen the capacity of our airlines and enhance affordability for travelers,” he added.

Keyamo reiterated his commitment to supporting Nigerian airlines while urging regulatory bodies to align efforts and avoid counterproductive public disputes. “Collaboration between the FCCPC, NCAA, and other stakeholders is key to fostering a robust and competitive aviation sector,” he concluded.