The Nigeria Civil Aviation Authority (NCAA) has stressed the need for effective economic regulation in the aviation sector to curb abuse of market power, promote fair competition and protect consumers.
The agency said that the regulation was necessary to balance commercial viability with public interest, particularly amid challenges such as high operating costs and multiple charges.
The Director-General of NCAA, Capt. Chris Najomo, made the call at the Airport Business Summit and Expo (ABSE 2026) on Wednesday in Lagos.
Najomo spoke on the topic: ‘Regulatory Framework for Taking Natural Monopoly to Protect Investors, Airlines and Consumers’.
“Natural monopolies are an inherent feature of the aviation industry because critical infrastructure and services such as airports and air navigation systems require substantial capital investment and cannot be economically duplicated.
“At NCAA, we recognise that a result-oriented regulatory framework must seek to prevent excessive charges, discriminatory practices and declining service standards,” he said.
Najomo said these could undermine investor confidence, increase airlines’ operating costs and deminish the travelling experience.
He noted that Nigeria’s aviation value chain comprised the government, regulators, airports, air navigation service providers, ground handlers and airlines, each with distinct responsibilities in the development of the sector.
According to him, the government sets policy direction, creates an enabling environment and establishes national priorities for aviation growth.
He said that regulators were responsible for enforcing rules relating to safety, security, economic regulation and consumer protection.
He said that airports provided critical infrastructure and facilities for aircraft operations, while air navigation service providers ensured safe, efficient and seamless movement of aircraft.
Najomo added that ground handling companies provided essential services that supported aircraft operations and maintenance, while airlines connected people, businesses and economies through air transport services.
He said that the aviation sector continued to face significant operational challenges, including high fuel costs, expensive materials, multiple charges and inadequate infrastructure.
It said effective regulation would help to ensure fair pricing, prevent abuse of dominant market positions, encourage investment in aviation infrastructure and protect the rights of passengers.
He said that investors required predictable returns, transparent regulations and fair access to infrastructure, while airlines needed fair access and transparent charges.
“Consumers, on the other hand, expect safe, affordable and quality air transport services,” Najomo said.
According to him, regulatory framework established under the Nigeria Civil Aviation Act of 2022 provides the legal foundation for regulating economic activities, consumer protection, market entry and airline licensing.
Najomo also said that the framework regulated air transport competition, charges, tariffs and fair access to aviation infrastructure.
He said that the framework was designed to create a stable investment environment, promote fair competition, improve service quality and protect consumers from possible abuse by dominant operators.
He said the frame was also designed to ensure transparent licensing, assess financial fitness of operators, promote market sustainability and prevent anti-competitive practices.
Najomo urged that prospective airlines must meet established requirements, including presentation of a viable business plan, before being allowed to operate.
On consumer protection, Najomo said regulations were in place to safeguard passenger rights and ensure that airlines would comply with minimum service standards.
He said that passengers were entitled to relevant information about their flights and appropriate remedies where services were cancelled or disrupted.
He highlighted the importance of economic oversight, saying airlines were required to submit financial returns and other relevant information to support transparency, accountability and regulatory compliance.
He added that competition regulation was necessary to prevent discriminatory practices and promote a level playing field among aviation operators.
The NCAA said airports and other aviation service providers were expected to meet established standards, comply with applicable regulations and undergo regular audits and inspections.
According to him, identified deficiencies must be addressed through corrective actions, while service providers are expected to maintain minimum service levels to ensure safety and efficiency.
He also emphasised the importance of regulating air navigation services, noting that reliable navigation services were essential to safe and efficient operation of the aviation industry.
Najomo said that service providers were expected to meet established performance and safety requirements, with penalties applicable where service obligations would not be met.
He stressed that regulation without enforcement would be ineffective, saying that the authority had the power to conduct audits and inspections, impose sanctions and suspend or withdraw licences where necessary.
Najomo said that effective economic regulation would promote non-discriminatory access and service-level agreements as well as published performance standards to improve fairness, efficiency and accountability.
The director-general and other stakeholders toured the stands of exhibitors.
Airport managers, airline operators, industry regulator and other aviators participed in the summit.
