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Yuletide: Local flights break N300,000 mark

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The cost of airfares on some domestic routes has jumped by about 150 per cent, crossing N300,000, as travellers now experience an astronomical rise in air ticket rates due to the high passenger volume associated with the Yuletide, among others.

Checks by The PUNCH showed that the hike in airfares was particularly on the South-South and South-East routes. These routes have high patronage, as most domestic air movements during the festive period are to these areas.

Usually, during the Yuletide rush, airfares are raised due to the high demand for tickets. But this season, passengers say prices of air tickets are out of reach following various economic challenges. Operators told our correspondent that the shortage of aircraft further compounded the airfare hike.

Before the festive period, air tickets on domestic routes hovered around N120,000. But an analysis of domestic airfares on the websites of airlines on Tuesday showed that ticket costs, particularly to the South-South and South-East regions, have increased by about 150 per cent compared to what the prices were before the Yuletide.

A flight search on the booking platform of Air Peace showed that a one-way economy ticket from Lagos to Asaba in Delta State moved from about N120,000 to over N300,000. The airline, between December 24 – 29, put the same ticket at N337,500.

Also, Delta State–bound passengers from Abuja will buy tickets from the airline for N335,500 between 23 – 28  December of this year. But the price may drop to N240,000 between 29 – 31 of the same month.

However, Aero Contractors offered a seat for N238,452 to Asaba on December 24, 2025. United Nigeria Airlines will also fly Lagos to Asaba at N399,999 and fly Abuja to Asaba between December 22 – 26 at prices ranging from  N335,499 and N360,499.

Findings further showed that Air Peace may only fly between Lagos and Enugu from December 28 – 29  for prices ranging between N335,500 and N430,700. The airline will also sell its ticket for N335,500 from December 24 – 28, and sell for N240,200 on the 29th of the same month for domestic passengers flying from Abuja to Enugu.

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Lagos to Calabar on Aero Contractors will cost between N187,976 and N151,786 between December 22 – 24, while United Nigeria will sell a seat on its Lagos–Benin flight for N335,499 between December 22 – 30, but it increased the price by N10,000 on December 31.

Air Peace will sell its Lagos–Port Harcourt ticket for N335,500 between the 23rd–29th of the month.

Most dramatic flights are within a one-hour range. For instance, Asaba and Benin are about 40 minutes by air and about four hours by road.

Many Nigerians prefer air travel not only because it is faster but also because it helps them avoid security challenges across the country.

Lagos–Anambra on December 17, on United Nigeria Airlines will cost N399,999. From December 18 – 21 have been sold out. For Owerri-bound passengers from Lagos on the UNA flight, prices fluctuate between N335,499 and N499,998 from December 16, 2025.

Following the new price surge, some passengers are now considering travelling by road to their destinations as an alternative amidst the insecurity currently ravaging the country. Meanwhile, aside from the lack of adequate aircraft to operate, operators also lament multiple taxation as another reason for the hike in airfares.

Experts in the industry ascribed one of the reasons for the aircraft shortage to maintenance hiccups. Many of the airlines’ planes are parked in different Maintenance, Repair, and Overhaul hangars scattered abroad.

In a recent paper, Charles Grant, Chief Financial Officer, Aero Contractors, said Nigerian airlines use only 38 serviceable aircraft—one of the clearest signs that the aviation system requires intervention.

He blamed the low number of aircraft on multiple charges and unfriendly government policies, appealing to the government to stop seeing aviation as a revenue-generating sector and instead reinvest funds amassed from aviation back into the sector.

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“Today, most Nigerian airlines operate with just four to six active aircraft, despite national demand. That’s not a choice; it’s the result of punitive economics,” Grant stated.

Also, in a dramatic turn of events, Nigeria’s largest carrier, Air Peace, disclosed that in the past weeks it has experienced several operational disruptions, resulting in flight delays and cancellations after its lessor, SmartLynx Airlines, withdrew three aircraft from its fleet unannounced after receiving payment in advance.

Chief Commercial Officer at Air Peace, Nowel Ngala, explained that the airline entered a wet-lease agreement with SmartLynx because 13 of its aircraft are currently undergoing scheduled maintenance abroad. Ngala stated that to avoid service gaps, Air Peace leased aircraft from SmartLynx in a bid to support Nigerian passengers during peak travel periods.

But he lamented that the “abrupt and unjustified withdrawal of four aircraft we wet-leased from SmartLynx Airlines caused disruptions. This withdrawal was done without prior notice, a clear violation of industry standards and of the agreement between both parties.”

He, however, assured that despite these setbacks, some of its aircraft have completed maintenance and are returning to service.

Experts speak

Speaking with our correspondent over the phone, President of the Aircraft Owners and Pilots Association of Nigeria, Dr Alex Nwuba, confirmed that airlines are currently faced with capacity shortfalls but stressed that airlines are striving to bridge the gap.

He said, “You are correct that airline capacity shortfalls often contribute to higher fares during festive periods. In the case of Nigeria this season, we have seen some disruptions. For example, Air Peace lost a number of aircraft, which reduced their daily capacity by roughly 300 seats. At the same time, however, the airline has announced the return of several aircraft, which should help to fill those gaps and at least maintain current capacity levels.

“In addition, two more airlines are expected to commence operations during this period, which will further expand available seats and improve overall industry capacity. If external challenges such as security do not interfere, the industry should fare reasonably well this year.”

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Nwuba further said passengers should expect higher fares, describing the pattern as seasonal.

“That said, consumers should still expect higher fares, as this is traditionally the seasonal pattern. Demand always rises during festive periods, and prices reflect that. Nigeria, however, stands to benefit from this increased travel activity, as it supports tourism and boosts confidence in the aviation sector. All things being equal, the outlook remains positive,” he stressed.

Former Director-General of the Nigeria Civil Aviation Authority, Harold Demuren, appealed to the Federal Government to do whatever is possible to support Nigerian operators to achieve more capacity. Demuren added that if it would entail renegotiation of some Bilateral Air Service Agreements that are one-sided against Nigerian operators, the government should not hesitate.

He said, “In BASA, both parties must benefit; it should not be one-sided. The Nigerian government needs to protect the local carriers. You can’t be wrong supporting your own. You can renegotiate your BASAs. It may be difficult, but you can renegotiate.”

Industry expert, Olumide Ohunayo, described the situation as seasonal but appealed to the airlines to pay attention to airline staff so as to get the best from them in handling the passenger volume that the season brings professionally.

“This is seasonal, but I can only greet airline operators who are working at this time. However, the season comes with its attendant challenges, and airlines must pay attention to passengers and airline staff members, too. Because it is when they are well taken care of that they will also handle passengers professionally as expected,” he said.

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Nigerian states’ revenues rise 93%, but education spending drops — World Bank

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The World Bank says Nigeria’s 36 states recorded a 93 per cent increase in revenues between 2023 and 2025 but education received a declining share of the sector’s expenditure.

The bank disclosed this in its latest Nigeria Development Update, which examined how increased public revenues have influenced spending priorities across the federation.

The report was made available to the News Agency of Nigeria by the World Bank in Washington D.C.

According to the report, states’ aggregate revenues rose by approximately 93 per cent in real terms, while expenditure increased by 92 per cent during the period.

The report attributed the improvement partly to exchange-rate reforms, petrol subsidy removal, stronger revenue administration and increased allocations from the federation account.

It said states also benefited from refunds, settlement of longstanding federal obligations, intervention funds, and stronger Value Added Tax collections.

However, education’s share of total state expenditure declined from 14.9 per cent in 2021 to 12.1 per cent in 2025, according to the report.

Health expenditure remained broadly stable at approximately seven per cent, while social protection’s share increased from 1.4 per cent to 4.4 per cent.

The bank said capital expenditure increased significantly, accounting for 61 per cent of state spending, compared with 46 per cent previously.

Transport infrastructure recorded the largest increase, alongside substantial spending on housing, agriculture and other economic investments.

The report quoted Mathew Verghis, the World Bank Country Director for Nigeria, as saying that increased revenues provided the opportunity to improve infrastructure, education, healthcare, and water services.

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He said greater spending efficiency, accountability and improved service delivery were essential to ensuring that additional public resources benefited Nigerians.

The bank acknowledged improvements in states’ fiscal reporting, transparency and internally generated revenue.

It, however, stressed that stronger investment in human capital was necessary to translate economic reforms into sustainable employment and improved living standards.

The report also projected average economic growth of 4.4 per cent between 2026 and 2028, subject to sustained reforms and improved service delivery.

It urged federal and state authorities to ensure that increased public revenues translated into tangible improvements in Nigerians’ welfare.

NAN

Source: punchng.com

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Nigeria promotes investment without building production capacity – UNILAG don

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A professor of Comparative Political Economy at the University of Lagos, Adelaja Odukoya, has asserted that Nigeria’s economic policies promote investment without sufficiently strengthening domestic production.

Odukoya argued that the contradiction had weakened the country’s productive foundations, with policies encouraging investment and entrepreneurship while failing to create the technological capacity, productive employment and processing industries needed to drive sustainable development.

Odukoya spoke at the maiden edition of the Adeleke University Toyin Falola Annual Lecture, held on Thursday at the Performing Arts Theatre, Adeleke University, Ede.

The lecture had as its theme, “History, Power and Accumulation: Reimagining Africa in the Globally Disorderly Order.”

Odukoya identified several contradictions in the way the Nigerian state manages economic activity.

He said, “The state promotes investment without creating conditions for technological transfer. It encourages entrepreneurship without generating sufficient productive employment.

“It expands primary-product exports while leaving processing capacity undeveloped. It constructs infrastructure without establishing strong linkages with domestic production.”

According to him, the contradictions explain why increased economic activity and accumulation do not necessarily translate into development.

“Accumulation is not synonymous with development,” Odukoya stated.

He argued that genuine development should be measured by the expansion of productive, technological, institutional and human capabilities.

“A country could attract investment, export minerals and agricultural commodities and record economic activity while still failing to build the domestic industries and technological capabilities required for long-term development,” he said.

His argument was echoed by Prof Toyin Falola, who said Africa’s vast natural resources would continue to reinforce dependency unless governments developed the industrial, technological and institutional capacity to transform them into productive power.

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Falola said Africa’s resource problem was not simply one of historical exploitation, but also the continent’s failure to convert its resource endowments into power.

“The issue, however, is not just to repeat the history of exploitation. It is more important to know how Africa turns its great resources into power,” Falola said.

He argued that Africa could not afford to remain a spectator as global economic and geopolitical arrangements continued to change, stressing that resource ownership without the capacity to add value would not guarantee influence.

Falola said the continent required a combination of knowledge, government policy and industrial capacity to change its economic position.

“There must be universities that generate new knowledge; there must be governments that translate this knowledge into policies; there must be industries that add value to the continent’s natural resources,” he said.

He added that Africa needed more than improved infrastructure and stronger economies if it wanted to exercise greater influence in the global system.

“The future of the continent will require more than just better infrastructure, improved economies, and more effective political institutions,” Falola said.

Source: punchng.com

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Import waivers, insecurity end two-year agric trade surplus

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Import waivers meant to ease hunger and insecurity on farms have led to a deficit, ending a two-year run of surpluses, as Nigeria’s agricultural trade balance swung from a N740.27bn surplus in the first half of 2025 to a N56.13bn deficit in H1 2026, according to agriculture and trade experts.

Recent foreign trade data from the National Bureau of Statistics showed that agricultural exports fell by 33.28 per cent, or N985.14bn, to N1.98tn in H1 2026 from N2.96tn in H1 2025.

Agricultural imports fell by only 8.50 per cent, or N188.74bn, to N2.03tn from N2.22tn over the same period. The gap between the two movements produced a N796.40bn swing in the trade balance.

Nigeria recorded a N365.74bn deficit in H1 2023, when imports of N926.25bn far exceeded exports of N560.51bn. The balance then turned to a N194.92bn surplus in H1 2024 before it widened to N740.27bn in H1 2025.

In separate phone interviews with The PUNCH, Agribusiness experts, including the Chairman of the Lagos Chamber of Commerce and Industry’s Agricultural and Allied Group, Tunde Banjoko, explained that recent government policy led to the shift.

Banjoko said, “Some waivers were given for products like palm oil and rice, and the import tariffs were drastically reduced. It became more favourable for people to import than to patronise local producers.”

He said the waivers on food commodities hurt domestic producers, even though lower tariffs on tractors and manufacturing equipment helped them.

According to Banjoko, “The effect is that our imports will rise above our exports. Second, we will discourage local production. Thirdly, we will be reducing employment, because some factories will shut down if they are not able to compete.”

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Banjoko also said weak funding for processors compounds the problem. He said foreign direct investment flows mainly into the capital market rather than into production and processing, so local processors cannot scale.

He urged the Federal Government to speed up the Special Agro-Industrial Processing Zones programme. “We should speed up such projects where we can produce enough for our country and start exporting, not look for shortcuts by reducing prices,” Banjoko added.

Meanwhile, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, identified two major factors behind the deficit. He said the first was the Federal Government’s decision to allow some food imports to tackle runaway inflation.

Yusuf said, “The first is the decision of the government to allow for some food imports as a result of the challenges of food inflation, which at a point was getting almost completely out of hand.”

He added that insecurity worsened the supply gap and cut export capacity, stating, “Insecurity led many farmers to leave their farms. Many of them have ended up in IDP camps, and quite a number have completely abandoned farming.”

He added that farmers cannot export without output. Yusuf said, “You can only export when you have the output.”

Yusuf also said high input costs and falling produce prices have discouraged farming. He said, “Most of these inputs are imported, so the exchange rate situation has seriously affected the cost of inputs, and the prices of produce have gone down.”

He urged the Federal Government to cut the cost of fertiliser, agrochemicals, machinery and improved seedlings. He also called for a minimum guaranteed price for agricultural produce.

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Yusuf said, “The government can establish a threshold below which, if prices fall, it will give farmers some compensation. That is the way it is done in many other economies.”

Source: punchng.com

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