NAMA Announces 800% Increase in Navigation Fees Amidst Economic Challenges
Engineer Farouk Ahmed Umar, Managing Director/CE of the Nigerian Airspace Management Agency (NAMA), has highlighted the dire economic conditions facing the aviation industry and unveiled significant changes to NAMA’s fee structure.
In his keynote address themed “Aviation Survivability amidst a Challenging Macro-Economic Environment,” delivered at the 28th Annual Conference of the League of Airport and Aviation Correspondents held at Providence Hotel, Ikeja, Lagos, Umar painted a vivid picture of the global and local economic impact of the aviation sector.
He noted, “The aviation industry supports over $3.5 trillion or 4.1 percent of the world’s GDP, with Nigeria contributing $1.7 billion and supporting 241,000 jobs.”
However, he emphasised the stark contrast with other African nations, citing South Africa’s $9.4 billion contribution and Kenya’s $3.2 billion.
“Our industry has always been a barometer for the global economy, and recent times have tested our resilience in unprecedented ways,” he said, referring to the disruptions caused by the COVID-19 pandemic and the current economic volatility.
To navigate these turbulent times, Umar outlined several strategic initiatives focusing on operational efficiency, technological innovation, infrastructure enhancement, and collaboration.
“Operational efficiency and cost management are paramount,” he stressed, highlighting NAMA’s commitment to improving air traffic management systems.
On embracing innovation, he stated, “The digital transformation of aviation is not just a trend but a necessity. By embracing these technologies, we can improve safety, reduce delays, and enhance economic performance.”
Umar underscored the importance of modern infrastructure and robust partnerships. “NAMA is dedicated to upgrading our airspace infrastructure to accommodate future demands,” he said, mentioning plans to modernise navigational aids and enhance radar coverage.
He also called for stronger collaborations among stakeholders to tackle industry challenges collectively.
Umar said while there had been consistent increase in prices of flight tickets, the agency’s fees have remained unchanged despite the high cost of maintaining navigational infrastructure.
He announced an 800 percent increase in NAMA’s fees and charges, effective September 1, 2024. “While ticket prices have risen astronomically, NAMA’s navigational charges have remained the same since June 2008,” he explained.
The new unit rate for en-route navigation charges will rise from 2,000 to 18,000 Naira per flight, while terminal navigation charges for domestic flights will increase from 6,000 to 54,000 Naira. The fee for extending service hours at non-24-hour aerodromes will also rise from 50,000 to 450,000 Naira per extension.
Umar addressed recent misinformation about NAMA’s radar systems, affirming, “Our radars are fully functional, even though the system is due for an upgrade.”
He also acknowledged the support of the Honorable Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, attributing NAMA’s success to his visionary leadership.
Umar also stressed the need for resilience and innovation in the Nigerian aviation sector. “By embracing change, fostering collaboration, and maintaining our commitment to excellence, we can not only survive but thrive amidst this challenging macro-economic environment,” he affirmed.
