Business

Stakeholders Explain Why Nigerian Airlines May Not Cut Ticket Fares

Published

5 years ago

August 15, 2021

Stakeholders in the aviation industry have said the charges paid by airlines in Nigeria and the cost of operation make it difficult for them to reduce their ticket fares.

A member of Aviation Round Table, Olumide Ohunayo, in an interview with our correspondent, said the cost of tickets was still rising due to the naira-dollar exchange rate.

He said, “Most of the expenses of the airline are denominated in dollars; they have to buy spares, train their crew and spend money on certification. When you put all these together, it is a big cost to them.

“Also, the aviation fuel price keeps getting worse. We do not refine, we transport. As you leave Lagos, the cost of the aviation fuel keeps rising.”

He added that the insecurity in the country had prevented airlines from expanding, as they had to spend so much providing security for some of their personnel, including expatriates, and other important guests.

Ohunayo said, “Almost all charges and payments to agencies have increased by ratio. All of these would return to the passengers. The tax collected by the Federal Airports Authority of Nigeria has also doubled.”

The Managing Partner, Aglow Aviation Support Services Limited, Tayo Ojuri, said, “At the moment, we might not anticipate low ticket fare because airlines have to put some factors into consideration such as the crew, maintenance insurance, as well as the cost of operations, including the aviation fuel.

“Airlines put these into considerations before determining their ticket fare. The lease is major; your lease is dollarised. Whatever money you make on your lease, you have to convert it to dollars. However, dollar does not exist at a preferential rate at the moment.

“Also the crew, operational staff down to the pilot, inflight crew have to go for their training every six months which is also dollarised.

“We do not have simulators for ATRs yet in Nigeria; maintenance also has to be put into consideration, likewise the insurance cost.”

According to him, other charges include landing and parking charges.

An aviation security expert, Group Capt. John Ojikutu (retd.), said airlines must carefully examine the cost of operation, and set reasonable fares for their tickets in order to make profits.

“You cannot fly to Abuja now that you are importing fuel, buying aircraft from foreign countries, importing spare parts in dollars, yet sell tickets cheap and expect to make profit.”

The Chief Operating Officer, Ibom Airlines, George Uriesi, said the price of aviation fuel have a major impact on ticket fares.

He said, “We have to fly, so we have as much as possible tried to take as much fuel as we can out of Lagos which is the cheapest fuel. But you still have to refuel everywhere you go. Every two or three days, they announce a new price to us and on the average, we are paying double.

“When you are paying twice the amount of what you were paying before for fuel, then you have to try to be efficient in all your other expenses. You have to look for a way to add a little to the ticket price.”

(PUNCH)

Business

Naira Depreciates At Official FX Market

Published

4 days ago

April 18, 2026

Editor

The Nigerian naira depreciated slightly against the United States (US) dollar, trading at N1,343.6398 per dollar at the Central Bank of Nigeria (CBN) official foreign exchange window on Friday, 17th April, 2026.

According to the data on the CBN’s official platform, the naira traded at the Nigerian Foreign Exchange Market (NFEM) rate of N1,343.6398/$per dollar and closed at N1,342.5000 per dollar.

When compared with the previous trading rate, the Nigerian currency traded at N1342.3037 on 16th April, 2026. With this, the Nigerian currency depreciated slightly by a minimum of N1.3.

At the parallel market, the naira-to-dollar exchange rate for the buying rate didn’t change while the selling rate increased by N3 when compared to that of the previous trading rate.

According to Aboki FX , the Naira-to-dollar exchange rate at the black market on Friday, 17th April, 2026, was N1,395 and N1,405 per dollar for buying and selling rate respectively.

Business

Crude Oil Prices Jump As Fear Mounts On Fresh Domestic Petrol Hike In Nigeria

Published

1 week ago

April 13, 2026

Editor

Crude oil prices surged by 7 percent on Monday amid United States President Donald Trump’s planned blockade of the Strait of Hormuz.

Checks by DAILY POST on Monday showed that West Texas Intermediate and Brent rose to $103 per barrel and $101 per barrel, respectively.

The latest crude price rally comes as US-Iran peace talks, reportedly orchestrated by Pakistan, collapsed.

Recall that President Trump, at the weekend, said via his Truth Social account that the US Navy will begin “BLOCKADING any and all ships trying to enter or leave the Strait of Hormuz.”

In response, Iran warned the US of the dangers of a Strait of Hormuz blockade.

The tension in the Strait of Hormuz has pushed crude oil prices higher.

The development has reignited concerns over a fresh domestic fuel price hike in Nigeria.

Petrol is currently being dispensed in Nigeria between N1,290 and N1,350 per litre across filling stations

Business

Nigerian Govt Announces New Tariffs, Cuts Duty On Rice, Cars, Drugs, Sugar

Published

1 week ago

April 12, 2026

Editor

The Federal Government has approved the implementation of the 2026 Fiscal Policy Measures, FPM, introducing sweeping changes to import tariffs aimed at stimulating growth across key sectors of the economy.

The approval was conveyed in a document dated April 1, 2026, and signed by the Minister of Finance, Wale Edun. The new policy replaces the 2023 FPM.

A major highlight of the policy is the review of import duties across 127 tariff lines, covering items such as rice, sugar, vehicles, and industrial inputs. The government said the reductions are designed to “promote and stimulate growth in critical sectors of the economy”.

Under the revised regime, the Import Adjustment Tax, IAT, on products like crude palm oil has been set at a total effective rate of 28.75 percent, down from higher rates under previous tariff structures.

In the automotive sector, tariffs on fully built passenger vehicles, including four-wheel drives and station wagons, have been reduced to 40 percent from 70 percent as stipulated in the 2015 FPM.

To ease the transition, the government granted a 90-day grace period for importers who opened Form ‘M’ before April 1, allowing them to clear goods at the old rates.

However, the policy also introduces a new excise duty regime alongside a green tax surcharge, both scheduled to take effect from July 1, 2026.

Key Tariff Adjustments:

Here is a summary of details of the gazetted list outlining revised duties on several goods:

Antimalarial medicaments: 20%

Rice (bulk or >5kg): 47.5% (from 70%)

Broken rice: 30% (from 70%)

Wheat or meslin flour: 70%

Crude palm oil: 28.75% (from 35%)

Raw cane sugar: 55% (from 70%)

Cane/beet sugar (powder/granule): 57.5% (from 70%)

Margarine (excluding liquid): 40%

Refined salt: 55% (from 70%)

Envelopes: 40% (from 50%)

Diaries/notebooks: 30% (from 40%)

Unglazed ceramic tiles: 35% (from 40%)

Glazed ceramic tiles: 46.25% (from 55%)

Ceramic cubes (<7 cm): 35% (from 40%)

Steel and Industrial Inputs

Zinc-coated steel sheets: 35% (from 45%)

Aluminum-coated steel coils: 35% (from 45%)

Electroplated steel: 35% (from 45%)

Cold-rolled steel (<0.25% carbon): 15% Hot-rolled deformed steel bars: 35% (from 45%) Steel rods (5.5mm–14mm): 35% (from 45%) Other Key Adjustments: Electrical apparatus (e.g., fuses): 10% (from 20%) Railway/tramway locomotives (SKD/CKD): 0% (from 5%) Cargo ships (>500 tonnes): 0% (from 5%)

Breathing appliances and gas masks: 0% (from 5%)

Agricultural and manufacturing machinery: 0% (from 5%)

Modular surgical operating theaters: 5% (from 20%)

Air/vacuum pumps and compressors: 5% (from 10%)

Automatic circuit breakers: 10% (from 20%)

Lamp holders: 10% (from 20%)

Green Tax Exemptions:

The policy also outlines categories exempted from the planned green tax surcharge. These include –

Vehicles below 2000cc

Mass transit buses (heading 87.02)

Electric vehicles

Locally manufactured vehicles under specified headings (87.06–87.13)

The government said the overall reforms are part of efforts to balance revenue generation with economic stimulation, while supporting local industries and easing the cost of critical imports.