Engr. Umar Ahmed Farouk, MD, NAMA
By Sade Williams
The Nigerian Airspace Management Agency (NAMA) on Friday said it has proposed to increase navigational charges by 800 percent by September 1,2024.
When operational, ticket prices would automatically reflect the new charges by MAMA as passengers are likely to pay higher than N150,000 to N200,000 which is the current cost of a one way economy ticket.
Managing director of NAMA, Engr. Umar Ahmed Farouk disclosed this while delivering his Keynote Address at the 28th annual conference by the League of Airports and Aviation Correspondents (LAAC) held at the Providence Hotel in Lagos.
The theme for this year’s conference is: Aviation Survivability amidst a Challenging Macro-Economic Environment.
The NAMA boss, who lamented that the agency”s navigational charges have remained the same since June 2008, despite the astronomical increase in the prices of tickets, diesel and others, said ‘If NAMA is to survive and continue to guarantee safety and efficiency in the airspace it must ‘breathe’ properly’ by aligning its charges with current reality.
“The largest percentage of NAMA’s revenue comes from en-route navigation charges (domestic and international flights) and terminal navigation charges (domestic and international flights). As a service provider and in accordance with International best practices, NAMA not make profit.
“For 2023, NAMA has an expenditure of about N21 billion in personnel costs alone. It spent over N12 billion in capital costs and over N10 billion in overhead costs. All these were to be (and were) funded from fees and charges (no Federal government budgetary allocation).
“NAMA has been charging as low N11,000 per flight when a one-way domestic ticket cost only N16,000 . While ticket prices today have gone up astronomically to as high as between N150,000 to N200,000 for a one way economy ticket owing to the prevailing economic circumstances, Nama’s navigational charges have remained the same since June 2008.
“Also, NAMA charges N50,000 for every hour that it has extend services beyond the stipulated hours of service at aerodromes that do not have 24 hours service. In 2008 a litre of diesel was sold at around N113 , today it is well over N1,400 per litre which represents over 1,000% increase which makes the current charges unsustainable. Same goes with personnel costs and other costs.
“Currently, our unit rate for international flights charge for service provision is about $70, domestic flights are charged 6,000 Naira. While, NAMA recognizes the difficult economic environment aviation operates in Nigeria, it is equally a part of the ecosystem. It goes to the same market to procure equipment and other services like trainings. If NAMA is to survive and continue to guarantee safety and efficiency in the airspace, it must breathe
“It is in the light of this, and in the spirit of this conference’s theme of survivability that NAMA announces the review of its fees and charges. Even though most costs in the economy have increased by more than 1,000%, NAMA has proposed to increase its fees and charges by 800%.
“The new unit rate/minimum charge for en-route is N18,000 from N2,000 Naira per flight while the new unit rate/minimum charge for Terminal Navigation charge(TCN domestic) is N54,000 from N6,000 per flight with effect from the 1st of September, 2024.
“Also, the extension of hours of service is also to be reviewed from N50,000 to N450,000 per extension to enable the Agency recover the cost of diesel and other logistics during the period of extension.”, he said.
Farouk however disclosed that NAMA has invested heavily in training programs to equip its personnel with the latest skills and knowledge, adding that collaboration has also led to improved air traffic management and better service delivery
“Our training initiatives have ensured that our workforce remains proficient and adaptable to technological advancements.We have strengthened our relationships with airlines, regulatory bodies, and international partners. Collaborative efforts have led to improved air traffic management and better service delivery.”, he added.
On strategies for survival and growth, Farouk opined that for players to survive in this challenging environment, they must prioritize operational efficiency and cost management.
“This involves streamlining our processes, optimizing resource allocation, and embracing technologies that enhance efficiency. “,
