Just five years ago, a one-way economy ticket from Lagos to Abuja typically sold for between ₦35,000 and ₦45,000, while fares on routes such as Lagos–Port Harcourt and Abuja–Port Harcourt averaged between ₦40,000 and ₦55,000. By 2025, those same routes were commonly selling for between ₦140,000 and ₦220,000, representing increases of more than 300 per cent in many cases.
For many Nigerians, the sharp rise has fuelled the perception that airlines have made air travel prohibitively expensive. However, aviation stakeholders and economic analysts argue that the real story lies beyond ticket pricing. They contend that the persistent depreciation of the naira against the US dollar has significantly inflated the local currency cost of airline operations, making airfares appear more expensive even where the underlying dollar cost has not risen proportionately.
An aviation and economic analyst, Sam Caulcrick, has argued that the sharp rise in the cost of air travel in Nigeria is largely a consequence of the depreciation of the naira rather than an increase in the actual dollar price of airline tickets.
In an analysis of Nigeria’s economic reforms and their impact on the aviation sector, Caulcrick said the country’s currency depreciation since the introduction of the Structural Adjustment Programme (SAP) in 1986 has significantly eroded the purchasing power of Nigerians, making airfares appear more expensive in naira terms.
According to him, a flight ticket to London that cost about 400 US dollars in the mid-1980s still falls within a similar price range today, but the value of the naira has fallen from about ₦1 to one US dollar in 1985 to over ₦1,400 to the dollar in the parallel market, dramatically increasing the naira cost of international travel.
He traced the development to the adoption of SAP under the military administration of former Head of State Ibrahim Babangida, which introduced the Second-Tier Foreign Exchange Market (SFEM) and effectively floated the naira.
Caulcrick argued that while the policy aimed to make Nigerian exports more competitive and reduce dependence on imports, the country lacked the domestic production capacity needed to absorb the impact of a weaker currency.
He noted that because Nigeria continued to rely heavily on imports—including aviation fuel, aircraft spare parts, pharmaceuticals, wheat and industrial inputs—currency devaluation translated almost immediately into higher prices across the economy.
The analyst also faulted the absence of complementary measures such as progressive taxation and social protection programmes, saying these would have helped cushion vulnerable Nigerians from the effects of currency depreciation.
According to him, sectors that earn predominantly in foreign currency, including the oil industry and parts of the aviation sector, operate in the same economy as citizens whose incomes are largely denominated in naira, creating what he described as a structural imbalance.
He explained that airlines incur many of their operating costs, including aircraft leasing, maintenance and spare parts, in US dollars while earning most of their revenue in naira, forcing operators to transfer rising costs to passengers whenever the local currency weakens.
Caulcrick said the resulting increase in ticket prices reduces passenger traffic and limits the growth of the aviation industry.
He identified imported inflation, widening income inequality and the declining purchasing power of the naira as the enduring consequences of the 1986 reforms.
To address the challenge, he called for policies aimed at reducing the economy’s dependence on the US dollar, including local aircraft leasing arrangements, increased domestic production of Jet A1 aviation fuel, and expanded local training and maintenance capabilities for the aviation industry.
He also advocated targeted subsidies for transport, food logistics and manufacturing, alongside progressive taxation of sectors with significant foreign currency earnings to fund social services and economic buffers.
“The airfare didn’t get more expensive. The naira got cheaper,” Caulcrick said, arguing that strengthening economic resilience rather than attempting to restore the old exchange rate should be Nigeria’s priority.
“The airfare didn’t get more expensive. The naira got cheaper. The dollar price of air travel has remained relatively stable, but the purchasing power of the naira has collapsed.When the naira falls, airline operating costs rise almost immediately because aircraft leases, spare parts and maintenance are largely paid for in dollars. Those costs are ultimately transferred to passengers.”
“We uncoupled the currency without uncoupling the people from hardship. Until we build stronger economic buffers, every major devaluation will continue to deepen the burden on households and businesses.”
“The real issue isn’t that airfares have become more expensive in dollar terms. The problem is that the naira has lost so much value that Nigerians now pay significantly more for the same ticket.” he said.
Airline Operators of Nigeria (AON) has repeatedly argued that the cost of running an airline in Nigeria is largely tied to the US dollar, making foreign exchange volatility the biggest challenge confronting domestic carriers.
According to AON spokesperson and Chairman of United Nigeria Airlines, Prof. Obiora Okonkwo, Nigerian airlines face an operating environment where virtually every major input is imported or priced in foreign currency. He identified aircraft acquisition and leasing, aviation insurance, maintenance, spare parts procurement and inadequate infrastructure as some of the biggest cost drivers limiting the competitiveness of local airlines. He made the remarks during the 2026 IATA Focus Africa Conference in Addis Ababa.
According to Okonkwo, airlines have become the “cash cow” of the aviation ecosystem because they shoulder most of these financial obligations while contending with high fuel prices, infrastructure deficits and limited access to affordable financing. He argued that unless these structural challenges are addressed, Nigerian carriers will continue to struggle to compete with foreign airlines operating under more favourable economic conditions.
Okonkwo explained that Nigerian airlines are at a disadvantage because while they earn most of their revenue in naira, a substantial portion of their expenses must be settled in US dollars. These include:
The association has argued that every depreciation of the naira immediately raises the naira equivalent of these costs. Airlines therefore have little choice but to adjust ticket prices in order to remain operational.
According to industry experts, the aviation sector operates under a structural imbalance in which most costs are dollar-denominated while ticket sales, particularly domestic flights, are largely in naira.
Beyond foreign exchange, AON has also maintained that Nigerian airlines are weighed down by multiple statutory taxes, charges and regulatory fees. Industry operators estimate that between 35 and 40 per cent of every ticket sold goes to taxes and charges payable to various government agencies. These include the 5 per cent Ticket Sales Charge (TSC), 5 per cent Cargo Sales Charge (CSC), Passenger Service Charge, landing and parking fees, terminal navigation charges, aircraft and simulator inspection fees, airport space rent, electricity charges, apron pass fees and other statutory levies.
Under the Civil Aviation Act and the Nigeria Civil Aviation Regulations (Nig.CARs), airlines are responsible for setting their own fares based on prevailing market conditions, operating costs and commercial strategies. However, every airline operating in Nigeria is required to file its fares, tariffs and applicable charges with the NCAA.
According to the Authority, the Fares and Tariffs Unit monitors airlines to ensure they:
File all fares and tariffs with the NCAA, clearly disclose all government taxes and service charges included in ticket prices, publish fares transparently for public inspection, avoid unfair, deceptive or anti-competitive pricing practices, comply with the Civil Aviation Act and economic regulations.
The Authority has consistently maintained that its mandate is economic regulation and consumer protection, not fixing ticket prices.
As long as aircraft leasing, maintenance, insurance, spare parts and other critical aviation inputs remain heavily dependent on the US dollar, every depreciation of the naira is likely to translate into higher ticket prices for passengers. For many industry stakeholders, making air travel more affordable will therefore require more than regulating fares. It will depend on broader economic reforms that strengthen the naira, expand local aviation capacity, reduce dependence on imported inputs and create a more stable operating environment for Nigerian airlines. Until then, the cost of flying may continue to mirror the fortunes of the national currency rather than any fundamental increase in the price of air travel itself.
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