The Federal Airports Authority of Nigeria (FAAN) has concluded plans to increase Passenger Service Charge (PSC) by 100 percent.
The new charge, effective from August 1, requires passengers to pay N2,000 for domestic flights as PSC, rather than the former N1000.
As for international travelers, as opposed to the previous $50, they’ll have to pay $100.
It was made clear by the managing director of FAAN Capt Rabiu Yadudu in a letter dated 22 June 2020 to all the airlines.
In the letter titled “Implementation of the approved new passenger service charge (PSC) effective August 1, 2020” With reference Ref: FAAN / HQ / MD/18E / VOL.86/72, it was reported that the decision was based on the approval of the Minister of Aviation in a letter referred to FMT / FMA / COM / T/69 of 3 August 2017 requesting, among other things, the development and upgrading of airport infrastructure.
Yadudu clarified that FAAN had recently informed the Aviation Minister of its intention to begin implementation, emphasizing on several occasions that they had engaged the Nigerian Civil Aviation Authority (NCAA) and other stakeholders, delaying implementation from 2017 to the present.
The FAAN boss confirmed the PSC interest limit is actually out of date.
According to Yadudu, on May 1, 2011, and March 21, 2011, respectively, PSC’s last review on domestic route from N350 to N1000 and from $35 to $50 on international route was on. He added the PSC’s most recent review was outdated.
He stated: “This does not correlate with the prevailing economic situation and the index to meet the needs of today and future growth in passenger traffic by FAAN and airport development, most especially for the airport upgrade to post COVID-19 standards.
“You will also wish to recall that Bi-Courtney Aviation Services, operators of the MM2 has for years been charging N2,500 as its PSC. Despite the operating PSC, some airlines recently moved operations from the General Aviation Terminal (GAT) handled by FAAN to the MMA2 because of the inability of FAAN to expand GAT.
“This increase will therefore afford FAAN the needed funds to upgrade our facilities to accommodate new airlines including the anticipated national carrier.”
