The Nigerian government is reportedly considering a substantial reduction of airfares by 50%, as revealed in a recent report by NewTelegraph. The aim is to provide subsidies to domestic airlines, alleviating the financial burden on passengers and addressing the escalating costs associated with air travel in the country.
A meeting is believed to have been held by top government officials recently and it was proposed that passengers would be required to fill out a form provided by the airline they are flying. These completed forms would be forwarded to the Central Bank of Nigeria (CBN).
Subsequently, passengers would be eligible for a 50% refund of the ticket’s value, with deductions for taxes and charges, including the 5% Ticket Sales Charge (TSC) collected by the Nigerian Civil Aviation Authority (NCAA) on behalf of specific agencies. The implementation of this subsidy program is anticipated to commence in February after finalizing the necessary details.
The initiative comes in response to the surge in air travel costs within Nigeria, with one-way ticket prices soaring from N35,000 in 2021 to an exorbitant range of N100,000 to N500,000. Presently, routes such as Lagos to Abuja command fares of up to N100,000, while flights to other cities like Owerri, Enugu, Anambra, Port Harcourt, Calabar, Uyo, Asaba, and Benin are associated with economy class fares reaching as high as N160,000 and N200,000 for a one-hour flight.
IMAGE: Business Day