Business
Foreign airlines’ fares now lower than Air Peace as price war continues on London route
Competition on the popular Lagos-London route has continued to intensify as foreign airlines continue to slash fares with some airlines now charging below rates by Air Peace Airline, the only Nigerian carrier operating the route.
BusinessDay has earlier reported that air fares from Nigeria to other countries saw a significant drop, following the appreciation of naira few months back and the competition arising from Air Peace commencement of Lagos-London route.
Air Peace started the Lagos-London flight on March 30, 2024, fully booked by Nigerians who have since sought cheaper tickets to London.
The airline had pegged its economy class ticket at N1.2million, thereby slashing fares on the route.
According to the airline, a return economy class ticket goes for N1.2 million while a return Business Class Ticket sells for N4million naira, as Nigerians studying in the UK accessed their special 15 percent rebate on the already reduced economy fares.
As at Tuesday, the International Air Transport Association (IATA) rate for sales of ticket rate for ticket sales in Nigeria dropped from almost N1,800 few months ago to now N1,505 to a dollar.
These factors have seen the prices of tickets drop on the Lagos-London route.
For instance a one way economy class ticket from Lagos to London on British Airways which cost N3.5 million for Economy and N11 million for Business Class few months ago has seen a sharp drop to N605,000 for economy and N7.6million for Business Class.
Other airlines that had pegged their tickets between N3.5 million to N2.5 million have also reduced fares, with some airlines currently selling lower than Air Peace.
As at Tuesday, a one way economy class ticket on Qatar Airways sold for N870,000, Ethiopian Airways N892,000, Royal Air Moroc N983,000, Air Peace N1,010,000, Asky N1,150,000 and Turkish Airlines N1,190,000.
The reverse is however the case for Business Class ticket as Air Peace remains the cheapest for this ticket class, as it sells for N2.5 million, Royal Air Moroc N2.6 million, Ethiopian Airlines N3,6 million, Qatar Airways N3.7 million, Turkish Airways N3.9 million, Air France N7.5 million and Lufthansa N10.6million.
British Airways’ Premium Economy class ticket cost N2.7million, and Business Class N7.6 million.
Olumide Ohunayo, industry analyst and Director, Research, Zenith Travels told BusinessDay that apart of Air Peace’s presence on the Lagos-London route which has seen airlines reduce fares, the price war is also in anticipation of the arrival of Emirates Airlines in October.
“Emirates is an airline that has strong dominance in the international route and 98 percent of their passengers are going to destinations beyond Dubai. So they have come to give European airlines competition,” Ohunayo said.
According to him, the European airlines are now reacting with price, service and offers such as lounges and even promo fares.
While this price war continues, he advised Air Peace not be rigid with what they are offering.
“They need to have a team that is studying the market and the offers and they will need to provide such offers to their passengers. This is about seat and capacity that is being offered to Nigerians as Nigerians have been flying these other airlines.
“Air Peace needs to show some balancing with what they are offering. Air Peace must watch what the competitors are offering in terms of lounges, excess luggages, amongst others. I am happy Air Peace has been given greater schedule till March next year. With this, people can do their bookings ahead,”Ohunayo said.
Susan Akporaiye, former president National Association of Nigerian Travel Agencies (NANTA) told BusinessDay that all airlines have now opened up low inventories.
Akporaiye said the release of inventory has created competition, making almost all airlines prices at the same range.
She argued that the reason some airlines have cheaper tickets than Air Peace is because Air Peace has sold all its cheap tickets and the classes of ticket it now has is selling for more than N1 million.
“Air Peace said they have sold out seats till September. This means they are doing very well. It is after September that we will know. After last week, we got a circular that Air Peace has opened up their availability up to March next year.
“If sales from Air Peace’s side is not much, it is because the cheap fares have been sold out. What is now available are tickets of over one million naira, which makes it more expensive than the other airline because the other airline still have cheap tickets. Air Peace has sold all their cheap ticket classes,” Akporaiye said.
The former NANTA president also hinted that the exchange rate has also contributed in slashing fares.
“What determines the amount of tickets in naira is the rate of exchange. At the time when economy class ticket was selling for 5 million to 7 million, these were the highest economy when low inventories were closed.
“When exchange rate was between N400 to N600 to a dollar, the highest economy class ticket sold between N2 million to N2.5 million. When the rate of exchange went to as high as N1,800 to N1,900, that was when the same ticket of N2.5 million went to about N7 million,” she said.
She argued that the release of cheap ticket inventory was happening at the same time rate of exchange was coming down.
“Airlines released low ticket inventories and the rate of exchange came down. Two things were happening at the same time. Airlines released low ticket inventories and at the same time, the rate of exchange was coming down. When they released all their inventories and rate of exchange came down to N1,200 to a dollar, that was when we were seeing N800,000 to N1 million tickets rates to London,” Akporaiye said.
John Ojikutu, industry expert and the CEO of Centurion Aviation Security and Safety Consult, Nigeria said he had earlier predicted that Air Peace’s commencement of Lagos-London flight would bring about competition on the route.
“This is the beginning of the competition for scrapping the exploitation of the foreign airlines on the Bilateral Air Service Agreement (BASA) routes. We hope those in the administration of our government and the management of the agencies will give the necessary support to Air Peace?,” Ojikutu said.
He said as Mexico is doing, federal government will need to restrict the foreign airlines operate into to Lagos or Abuja airports only to create a healthy competition.
“Let foreign airlines make as many frequencies as they wish daily but they must interline with the domestic airlines,” he said.
Findings by our correspondent showed that some filling stations now sell petrol below N860 per litre, while Dangote partners, such as MRS, Heyden, and others, sell at N865 or N875 in Lagos and Ogun States.
A filling station named SGR in Ogun State reduced its price to N847 per litre as of Tuesday. Marketers confirmed to The PUNCH that most importers have reduced their ex-depot petrol prices below that of the Dangote refinery.
As of Tuesday, it was learnt that Dangote refinery was selling petrol at N820 per litre while some depots sold the product at N815 per litre. According to Petroleumprice.ng, Aiteo, Menj and others put their prices at N815/litre as of Tuesday.
Our correspondent learnt that the importers were making efforts to remain in business through competitive pricing. Many had previously complained of recording losses when the 650,000-barrels-per-day capacity Dangote refinery began implementing constant price cuts earlier this year.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, confirmed the ongoing downward price review by the importers.
“Depot owners are dropping their petrol prices. Some of them are selling N815, some are selling N817, while Dangote is selling N820. NNPC is still selling at N825; it has not dropped its prices yet,” Ukadike disclosed.
He described this as the beauty of market liberalisation, saying President Bola Tinubu should not heed calls to ban fuel importation.
“This is the beauty of the liberalisation of the market. That is why we opined that the President should not ban anybody from importing petroleum products. Nobody should be stopped from bringing in petroleum products. That is the beauty of opening up the market. Implementation and local refining will checkmate unfair pricing. As an indigenous country, you must refine to ensure that you have the best price,” Ukadike said.
On claims that toxic and substandard fuels are being imported into the country, the IPMAN spokesman said the Nigerian Midstream and Downstream Petroleum Regulatory Authority is in place to check substandard fuels.
To remain viable, he urged governments across Africa to take deliberate steps as the United States, Canada, and the European Union have done to protect domestic producers from what he called unfair competition.
Dangote did not mince words when he said that the Nigeria First policy announced by Tinubu should apply to the petroleum products sector. “The Nigeria First policy announced by His Excellency, President Bola Tinubu, should apply to the petroleum product sector and all other sectors,” he stated.
This request by Dangote seeks to place a ban on the importation of petrol, diesel, and other products being produced locally. He argued that local refiners were finding it difficult to sell their products because of what he called dumping. The billionaire businessman alleged that importers were dumping toxic fuel that would never be allowed in Europe.
“And to make matters worse, we are now facing increased dumping of cheap, often toxic petroleum products, some of which are blended to substandard levels that would never be allowed in Europe or North America,” he said.
Dangote mentioned that some importers bring subsidised fuel or crude oil from Russia into Nigeria. This, he said, affects local pricing, forcing refiners to lower their prices below production cost.
“Due to the price caps on the Russian petroleum products, discounted petroleum products produced in Russia or with discounted Russian crude find their way to Africa, severely undercutting our local production, which is based on full crude pricing. This has created an unlevel playing field in most African countries. Petrol and diesel are sold for about a dollar net of taxes.
“In Nigeria, due to this unfair competition, this price is just about 60 cents, even cheaper than Saudi Arabia, which produces and refines its own oil. This is due to the fact that we are having too much dumping. To remain viable, we urge the governments across Africa to take deliberate steps as the United States, Canada, and the European Union have done to protect domestic producers from unfair competition,” he stated at a recent event organised by the Nigerian Upstream Petroleum Regulatory Authority in Abuja.
However, marketers disagreed with Dangote, urging the Federal Government not to consider adding petroleum products to the list of items banned from importation under the ‘Nigeria First’ policy.
… Govt set to develop tourist sites
… Work starts on Nnamdi Azikiwe Stadium, Awgu Games Village in earnest
The Enugu Air, CNG Mass Transit Programme, and the ultramodern transport terminals all built from scratch by the Governor Peter Administration are to be launched for operation before the second anniversary of the government.
The government has also approved the development of the state’s tourism industry, while total transformation of the Nnamdi Azikiwe Stadium and Awgu Games Village will start in June to get them ready for the National Sports Festival to be hosted by the state in 2026.
These were made known by the Commissioner for Transportation, Dr. Obi Ozor; Commissioner for Culture and Tourism, Dame Ugochi Madueke; Commissioner for Works and Infrastructure, Engr. Gerald Otiji; and Commissioner for Youth and Sports Development, Barr. Lloyd Ekweremadu after the State Executive Council meeting at the Government House, Enugu, at the weekend.
Briefing Government House Correspondents, Ozor said, “We are starting off with the initial three aircraft and two of the aircraft are already on ground. The third one will be on ground by the end of this month. We are hoping to start the commercial operations before the second year anniversary of this administration.
“You have also seen buses for the mass transit programme across the state. 50 of them are already parked at Okpara Square, and an additional 50 will be joining that fleet in the next few weeks. The 100 of them will be going into commercial operations before the end of this month, which is the second year anniversary.
“Also, the bus terminals, two at Holy Ghost, one each at Gariki, Abakpa and Nsukka, will also be commissioned and go into commercial operations before the 29th of May, this year.”
He added that the government planned to bring in the electric and CNG automotive manufacturing plant into Enugu as well as launch in the next 150 days the Enugu Smart Transport Programme, which would see to the injection of over 2,000 electric vehicles.
Also briefing newsmen, Dame Madueke said funds would be invested in the tourism industry in phases.
“We are going to have it in phases. For the first phase, we are having Awhum Waterfall, Nsude Pyramid where we are going to have the first canopy walkway in the South East. It measures about 600 metres, which will actually be the longest in Nigeria.
“We also have Ngwo Pine Forest where we are having the first zipline in Nigeria. The zipline will measure about 300 metres. In the same Ngwo, we will have a big rotunda and a smaller rotunda. We have the Cross of Hope to be located at Okpatu. The Cross of Hope will be sitting 580 metres above sea level and the cross itself will measure about 50 metres, making it a total of about 630 metres above sea level. The cross will have about 15 floors with a lift.
“At Awhum Waterfalls, we are going to have another canopy walkway and a boardwalk to preserve the ecosystem.
“We equally have the Akwuke/Atakkwu Waterpark and Ovu Lake Golf and Resort at Akpawfu,” she stated.
She explained that all the tourist sites would have experience centres, food courts and renewable energy, adding that tour buses would soon arrive to ensure ease of movement of tourists.
Ahead of the 23rd edition of the National Sports Festival, Enugu 2026, Barr. Ekweremadu said the State Executive Council had equally directed the commencement of work both at the Nnamdi Azikiwe Stadium and Awgu Games Village not later than June.
“We also briefed the council on the progress made in establishing a Lab for Animation for young people in Enugu State, which His Excellency will be commissioning soon. The lab is ready.
“We are similarly working towards empowering over 2,100 young people across the state, who were trained around December last year. This empowerment will be coming up on the 12th of August, being the International Youth Day’” Ekweremadu concluded.
By Sabastine Gabriel
The Enugu State House of Assembly has taken steps to address the issue of dropped calls and customer dissatisfaction with telecom operators in the state.
During a plenary session on Tuesday, member representing Igbo-Eze South Constituency, Hon. Harrison Ogara raised concerns over the impact of poor telecom services, which he believes are financially harming consumers who pay for unreliable services.
Ogara highlighted that with over 219 million Nigerians subscribing to telecom services, the residents of Enugu State have been particularly affected by the erratic performance of these providers, leading to significant financial losses.
He proposed that the telecom operators, MTN, Globacom, Airtel, and 9 Mobile be summoned to provide explanations on how they plan to reimburse customers affected by dropped calls.
In addition to refunds, Ogara requested that the telecom companies present accurate subscriber data and evidence of their tax compliance with the Enugu State Government.
He urged the establishment of a committee that includes state officials to investigate the financial losses incurred by residents due to telecom inefficiencies, making the findings public and ensuring that refunds are issued where due.
“Mr. Speaker, distinguished colleagues, I rise draw your attention to the current epileptic services of the telecoms services providers in Enugu State which has resulted to huge loss of funds by our citizens. Not minding being a late entrant in the global system for mobile (GSM) market, Nigeria has obviously out paced many countries across when we take into consideration the market size and telephone usage.
“It is quite absurd and preposterous that even with the rapid growth of the sector and it’s consequential growth in consumer size, users of telecom services in Enugu State have continued to groan under the scorching pressure of abysmal performance in services,” he lamented.
Other assembly members echoed Ogara’s motion, expressing frustration over the operators’ poor service and high tariffs, comparing the situation to problematic billing practices seen in other utility sectors.
The member representing Nsukka West, Hon. Malachy Onyechi likened the telecome operators to EEDC that give consumers exorbitant estimated billing without rendering commensurate services.
On his part, while supporting the motion, Hon. Clifford One, representing Igbo-Eze North 2, said that the activities of telecom operators are like the banking services where one is debited yet transaction does not go through.
Earlier the House of Assembly passed into law the Enugu State Land Use Charge Second Amendment, House Bill 6, 2025 presented by Hon. Iloabuchi Aniagu, member representing Nkanu West Constituency into law.
To give room for accelerated passage of the bill, the Enugu State House of Assembly suspended Order 14, Rule 102 sub section 1 of the House Standing Order.
…We guarantee your business, hurry and invest, Mbah urges diasporans
The Enugu State Government and the Lion Business Park Limited have sealed an investment deal with the signing of Novation Memorandum of Understanding (MOU) to develop a world-class industrial and commercial hub within the Enugu Industrial Park Free Trade Zone.
This was even as the state governor, Dr. Peter Mbah, reaffirmed the administration’s commitment to guaranteeing businesses through the provisions of infrastructure and enabling environment for ease of doing business, urging diaspora investors to turn their capital into Enugu State for a high return on investment, RoI.
Signing the MOU alongside top management of Lion Business Park Ltd in Enugu on Tuesday, the firm’s chairman, Dr. Okechukwu Mbonu, commended the governor for his visionary leadership, developmental strides and achievements the administration had recorded within a short period in office.
Highlighting the objective of the deal, Mbonu stressed that the company was poised to develop industrial and commercial hub that would catalyze trade, industry, economic growth and create jobs for the youth population.
“This strategic collaboration aligns with Your Excellency’s visionary economic agenda to grow the GDP of Enugu State from $4.4 billion to $30 billion (US Dollars) for the overall benefit of the people of Enugu State and Nigeria as a whole.
“It is therefore, a watershed moment with this renewed partnership between Lion Business Park and Enugu State Government. It is indeed a case of a promise made and fulfilled and I have no doubt that you will continue to fulfill your promises to the people of Enugu State,” the chairman added.
Mbonu, who expressed optimism about the investment, said the project would leverage on the incentives associated with businesses in a Free Trade Zone to attract foreign direct investments, promote human capital, innovation and technology development to create jobs.
Calling on the business community, private sector leaders and global investors to maximize the perfect opportunities the park presented to them to be part of the economic revolution, Mbonu added that the project had immense benefits that spurred beyond the state, the South East zone to Nigeria at large.
Speaking, Governor Mbah reiterated the administration’s economic blueprint, which is to grow the economy and make the state the number one destination for investors in the country, saying the promise to inspire exponential growth could only be possible with investment deals such as the one executed with the Lion Business Park.
“The Enugu State Government has committed to increase their stake in this going concern by providing all the necessary infrastructure that is required in order for this business park to be fully functional. We see the business park as food that is ready. Because if we are to start the process of building a business park, we know what it will take. Procuring your licenses; getting the free trade license, getting the dry port license because we have an inland port also at the Lion Business Park,” he noted.
While harping that the location of the park was a product of strategy, innovation and due diligence conducted by a team of economic experts in the administration, the governor said, “The business park is strategically located. It is three hours from Onne Sea Port in Rivers State, less than two hours to Asaba in Delta State, and less than 25 minutes to Akanu Ibiam International Airport, Enugu. We couldn’t ask for a business park at a better location”.
He assured that the administration would continue to make the state attractive to investors to set up their industries by providing the right incentives such as electricity, paved roads, and other infrastructure.
While appreciating host communities in the state for their support, the governor enjoined them to continue to cooperate with investors.
Fresh from implementing a ₦15 price reduction in its loading cost for Premium Motor Spirit, also known as petrol, the Dangote Refinery has again slashed its refined product prices to make them cheaper, cutting its ex-depot rate to ₦835 per litre.
The new price represents a ₦30 reduction from ₦865 per litre implemented six days ago, marking a 3.5 per cent decrease, and a ₦45 reduction from the ₦880 per litre sold by the facility last Wednesday.
This price cut marks Dangote’s third downward adjustment in under six weeks.
The refinery informed its customers in a notice sent out on Wednesday morning.
A pro forma invoice was sighted by our correspondent, and checks on petroleumprice.ng also confirmed the development.
It stated that the new price is inclusive of charges by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The document detailing the revised price structure shows that PMS at the gantry will now sell for ₦835 per litre, inclusive of NMDPRA statutory levies, while coastal sales remain on hold. The diesel gantry price is set at $608 plus a $70 surcharge, payable either in naira at ₦1,650/$ or in USD.
Coastal sales are also on hold. Jet fuel will be sold at $664.75 with a $42 gantry surcharge and a $22 coastal surcharge. Prices for cooking gas at both gantry and coastal points are currently on hold.
A possible price cut was envisaged after the landing cost of imported petrol dropped to ₦853 per litre on Tuesday.
This development comes as marketers secured regulatory approval to import 117,000 metric tonnes—equivalent to 156.897 million litres—of petrol within eight days, from 8 to 16 April 2025, to boost fuel supply nationwide.
These figures were revealed in separate documents obtained by our correspondent from the Nigerian Ports Authority and the Major Energies Marketers Association of Nigeria.
Dealers said the ₦853 per litre spot import parity into tanks, which includes expenses such as shipping, import duties, and exchange rates, marks a notable ₦3 reduction from ₦856.75 per litre last Monday and ₦852.02 on Tuesday.
The document showed that on-the-spot sales at the NPSC-NOJ terminal dropped to ₦853.12 per litre, while the 30-day average cost also declined to ₦844.84 per litre.
Within the period, marketers brought in six vessels conveying 117,000 metric tonnes through Tin Can Port in Lagos and Calabar Port in Cross River State.
Importantly, the continued price drop coincides with the restart and full implementation of the Naira-for-Crude agreement with local refiners after an earlier suspension.
The Ministry of Finance disclosed this in a statement published last week on its official X handle, titled: “Update on the Crude and Refined Product Sales in Naira Initiative.”
The statement followed a meeting on Tuesday between the Minister of Finance, Wale Edun, and representatives from Dangote Refinery—a major beneficiary of the agreement — to review progress and address ongoing
implementation issues.
The committee stated that the policy is not a temporary measure but a long-term strategy to reduce Nigeria’s dependence on foreign exchange for petroleum.
It added that the initiative is a key policy directive designed to support sustainable local refining and strengthen energy security.
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