The exorbitant airfares imposed on Nigerian air travellers by international airlines can be unequivocally traced back to the grossly imbalanced Bilateral Air Service Agreements (BASA) signed by the federal government, which sadly do not prioritise the protection of Nigerian carriers and travellers.
It has become a cliché to bemoan that Nigerian travellers pay exorbitant airfares for international destinations within West Africa and even more so for destinations worldwide, surpassing those of countries that are not at war.
Observers have recently speculated that the steep fares might be related to foreign airlines being owed a substantial sum, perhaps as much as $1 billion, in trapped funds within Nigeria. However, the truth is that Nigerians have been subjected to these relatively high rates for the past two decades.
Back in November 2011, reports emerged that Nigeria fined British Airways a staggering $135 million and Virgin Atlantic Airways $100 million for charging Nigerians exorbitant fares. The then Director-General of the Nigeria Civil Aviation Authority (NCAA), Dr Harold Demuren, boldly accused the airlines of holding a ‘dominant position,’ fixing prices, unfairly levying fuel surcharges, and shamelessly exploiting passengers.
After a lengthy investigation, it was revealed that the Lagos to London route boasted the world’s highest ‘yield.’ Thus, many Nigerians felt justifiably exploited by British Airways and Virgin Atlantic, with the NCAA’s Director-General publicly condemning their actions.
The two airlines, however, vehemently resisted these allegations and argued that market forces dictated the fares they charged Nigerian travellers. The dispute was eventually resolved, and British Airways and Virgin Atlantic continued their operations in Nigeria.
Travel agents often assert that high fares are merely a result of market forces and contend that fares in neighbouring Ghana, Togo, Benin Republic, and Cameroon are significantly lower due to the higher number of Nigerian travellers. According to them, this is a matter of simple supply and demand. However, this explanation needs to account for the fact that airfares in Nigeria have consistently been higher than those in neighbouring countries, regardless of the trapped funds issue.
The crux of the matter lies in the lopsided nature of the BASA agreements. If Nigerian airlines were granted the same access to Nigeria’s favourite destinations as international carriers from those countries, fares would naturally become more competitive. The high prices directly result from these airlines enjoying a monopoly on direct flights to these destinations.
Nigerian travellers paid relatively lower fares when Arik Air operated flights to London, alongside British Airways and Virgin Atlantic. However, as soon as Arik Air ceased flying to Heathrow, London, fares skyrocketed by 40%.
The issue of BASA should be considered. Travel expert and organiser of the Akwaaba African Travel Market, Ambassador Ikechi Uko, emphasises that it is a matter of negotiation between two nations and that Nigerian authorities must take responsibility for their failure to secure favourable terms.
The government must protect Nigerian travellers and airlines by renegotiating the BASA agreements. Other countries, including African nations, insist on certain conditions when negotiating their BASA and commercial agreements with foreign carriers. For example, they may demand that foreign airlines partner with indigenous carriers for multi-destination routes or pay a percentage of their seat fares to indigenous carriers. These conditions can promote fair competition and protect the interests of domestic airlines.
Regrettably, Nigeria has not imposed such conditions in its negotiations. Instead, foreign airlines have been granted monopoly-like privileges, enabling them to dictate fares and frequencies without any significant involvement of Nigerian carriers.
Nigeria must capitalise on its status as the African country with the most indigenous travellers. Approximately 16 million people travelled within Nigeria last year, with over four million travelling on inbound and outbound international routes, most of whom were Nigerian citizens. The federal government must adequately utilise this unique advantage to protect its travellers and advance its national interests.
Senator Musa Abebe of Kings Airlines and Allen Onyema, Chairman, and CEO of Air Peace, have urged the government to review the BASA agreements. They have called for an end to multi-city hopping by foreign airlines and a genuine commitment to supporting indigenous carriers. These Nigerian airlines need financial support and fair competition to flourish, and it is high time the government prioritises their growth.
Renowned industry consultant Mr Amos Akpan stresses the importance of strategically reviewing Nigeria’s aviation development programme. It should include reevaluating the BASA agreements to ensure they serve Nigeria’s national economic agenda and the interests of Nigerian airlines. In addition, investment funding, IT infrastructure, and creating a hub airport are vital steps towards bolstering Nigerian carriers’ capacity to compete on international routes.
The key to rectifying the exploitative airfares and empowering Nigerian airlines lies firmly in the hands of the government. By reassessing and renegotiating the BASA agreements, Nigeria can protect its travellers, create a fair, competitive landscape, and provide its airlines with the platform they need to succeed globally. It is time to prioritise the interests of Nigerian travellers and airlines and end the era of exploitation in the skies.
