A report from SBM Intelligence titled “Moving out of Reach” reveals that the surge in airfare prices in Nigeria is primarily driven by the devaluation of the naira. The rising cost of transportation in the country has made travel increasingly unaffordable for many Nigerians.

The report notes that, when calculated in dollar terms, the actual cost of flights has decreased. However, due to currency fluctuations, the naira value of airfares has risen sharply. In 2017, the exchange rate was N395.42, but by 2024 it had soared to N1518. This shift has caused the average price of flights, in naira, to more than triple—from N32,750 in 2017 to N124,693 in 2024. Interestingly, the report shows that airfare costs in dollar terms have slightly decreased, from $82.82 in 2017 to $82.14 in 2024.

Between 2017 and 2024, airfares in naira terms saw a dramatic increase of 280%, while in dollar terms, the cost dropped marginally.

Stanley Ikechukwu, head of operations at SBM Intelligence, emphasized that the devaluation of the naira, along with other factors, has contributed to the rise in airfares. He pointed out that air travel costs had been steadily increasing before the naira’s devaluation, with flight prices rising from N25,000 to N35,000 for a one-way trip to Abuja, and later reaching N70,000 to N80,000 by the time the Buhari administration ended.

The naira devaluation under President Tinubu’s administration further burdened the airline industry, pushing prices higher. Additionally, the rising cost of Jet A1 fuel, which jumped from N200 to N903 per litre, has made it more difficult for airlines to operate. Airlines also face rising maintenance costs, with a single C-check costing between $800,000 and $1 million.

Government taxes and levies, which account for over 40% of airline earnings in Nigeria, also contribute to the high cost of airfares, placing Nigeria among the countries with the highest aviation taxes. Other factors such as demand, supply, and the declining purchasing power of Nigerians are also influencing air travel costs.

As inflation continues to rise, the increasing cost of air travel remains a significant concern for Nigerians.

The National Union of Teachers (NUT) has expressed concerns regarding the ability of Local Governments (LGs) to pay the newly proposed minimum wage of N70,000 to primary school teachers. This worry arises from the fact that many LGs have yet to implement the previous N30,000 minimum wage.

In several states, including Nasarawa, Enugu, Zamfara, Borno, Yobe, and Kogi, local government employees have not received a pay increase since 2011, when the N18,000 minimum wage was introduced.

Mike Ene, the NUT’s General Secretary, pointed out that some states have not implemented the N18,000 minimum wage for local-level teachers, with some governors arguing that teachers are employed by the local governments. Ene stressed the need for a uniform implementation of the minimum wage, emphasizing that there should be no differentiation.

Regarding the new minimum wage, Hakeem Ambali, President of the National Union of Local Government Employees (NULGE), reassured that once Local Government autonomy is realized, the wage will be fully implemented. He pointed out that governors had previously claimed that local governments were autonomous, which hindered negotiations for LG workers’ wages. However, with the implementation of LG autonomy, this issue would be resolved.

Additionally, the Nigeria Labour Congress (NLC) has set a December deadline for all states to implement the new minimum wage, which is expected to increase pressure on state governments to comply. In Kwara State, the Speaker of the House of Assembly has suggested removing primary school teachers’ salaries from the local government budget to ensure timely payment.

States that did not implement the previous N18,000 minimum wage include:

– Abia
– Adamawa
– Bauchi
– Nasarawa
– Kogi
– Sokoto
– Taraba
– Yobe
– Zamfara
– Imo
– Gombe

In other news, the federal government is preparing to implement the Supreme Court’s ruling granting financial autonomy to local governments. Hakeem Ambali, the NULGE president, stated that the committee formed by federal, state, and local authorities had completed their discussions and signed the technical document. He added that President Bola Tinubu is expected to sign the document, and the Federal Accounts Allocation Committee (FAAC) will begin disbursing funds in line with the Supreme Court’s decision.

On Thursday, Governor Monday Okpebholo of Edo issued an immediate order to freeze all state-owned bank accounts until further notice.

The governor also instructed commercial banks, as well as the heads of Ministries, Departments, and Agencies, to comply with the directive without delay.

This announcement was made in a statement by Mr. Fred Itua, the Governor’s Chief Press Secretary.

Governor Okpebholo emphasized that any violations of the order would result in severe consequences.

“All bank accounts with commercial banks have been frozen. Commercial banks must adhere to this order and ensure that no funds are withdrawn from the government’s accounts until further notice,” the statement said.

He also directed that all heads of Ministries, Departments, and Agencies ensure full compliance with the order without any further delays.

“Following the necessary investigations and reconciliations, the Governor will make the appropriate decisions on the next steps. For now, this order remains in effect,” the statement concluded.