Business
Obiora Okonkwo Defends Nigeria’s Low Airfares
Obiora Okonkwo airfares remain low despite operating costs, as FCCPC investigates recent domestic ticket price increases in Nigeria
Prof. Obiora Okonkwo, Chairman and Chief Executive Officer of United Airlines Limited, has defended domestic airfares in Nigeria, saying they remain among the lowest globally despite rising operational costs.
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Okonkwo, who is also the Spokesperson for Nigerian airline operators, made the remarks on Channels Television’s The Morning Brief* on Thursday.
His comments follow recent public complaints alleging significant airfare hikes.
Okonkwo explained that airlines charge relatively low fares while facing high operating costs, including taxes, levies, and loans with interest rates of 30 to 35 per cent, compared with 2 to 7 per cent in other countries.
“I fly around the world and pay about $1,400 for a 45-minute flight. Multiply that. Nigeria remains one of the countries with the cheapest fares, and it is to the detriment of the operators,” Okonkwo said.
He added that ticket prices often vary within the same aircraft, with some passengers paying higher fares to offset discounted rates for others.
Okonkwo dismissed allegations of price gouging, attributing recent fare spikes to seasonal travel demand rather than deliberate manipulation.
He noted that online reports often highlight premium or last-minute tickets, rather than standard economy fares, which typically range between N120,000 and N150,000.
The remarks come amid calls from the House of Representatives for tax waivers and reductions in aviation auxiliary charges during the Yuletide season.
The Senate has also summoned the Minister of Aviation, Festus Keyamo, to address rising domestic ticket prices.
The Federal Competition and Consumer Protection Commission (FCCPC) has expanded its probe into domestic airfare increases, particularly on routes serving the South-East and South-South regions.
FCCPC Director of Corporate Affairs, Ondaje Ijagwu, said the investigation targets potential coordinated price manipulation and will scrutinise airline pricing templates and ticketing behaviour.
FCCPC Executive Vice Chairman Tunji Bello emphasised that the agency does not control prices but is empowered to protect consumers from exploitation under the Federal Competition and Consumer Protection Act, 2018.
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The commission pledged to act decisively where violations threaten consumer welfare or market competitiveness.
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Business
Kola Karim’s Shoreline Group Signs $300 million Deal With Accor to Develop Nigeria’s First National Hotel Platform
Kola Karim’s Shoreline Group has signed a letter of intent with Accor, a world leading hospitality group to establish Nigeria’s first national hotel platform.
The signing took place during the Africa Forward Summit 2026 hosted jointly by Kenya and France in Nairobi.
This ambitious partnership is set to make a significant contribution to the evolving Nigerian hospitality landscape with a substantial investment from Shoreline of $300 million, leveraging Accor’s renowned brand portfolio and expertise.
As gathered the strategic collaboration aims to develop a hotel network across Nigeria, encompassing 10 hotels across eight cities and over 1,200 rooms by 2030.
These properties will span various segments, from midscale to luxury, catering to diverse travelers and contributing significantly to the nation’s tourism growth. The project also includes the establishment of a dedicated hospitality training Academy to nurture local talent and create approximately 1,000 direct jobs.
Mr. Sébastien Bazin, Chairman and CEO of Accor, stated: “We are thrilled to partner with Shoreline Group to unlock the immense potential of Nigeria’s hospitality sector. This partnership is a testament to our belief in Nigeria’s dynamic future.
“By combining Shoreline’s deep understanding of the local market with Accor’s global expertise and diverse brand portfolio, we are poised to create an unparalleled hospitality offering that will set new benchmarks for quality and service.
“Crucially, the establishment of the Accor Academy is integral to this vision, enabling us to deliver immediate talent development for the Shoreline hotel portfolio, demonstrate our long-term commitment to Nigeria through dedicated training facilities, and solidify Accor’s position as the employer and educator of choice in West Africa.”
The Agbaoye of Ibadanland and Chairman of Shoreline Group, Karim, commenting on the development said: “This partnership is central to Shoreline’s strategy of building institutional-quality infrastructure platforms across Africa.
“We anticipate hospitality infrastructure becoming increasingly vital for capital movement and development, particularly in Nigeria where high-quality room supply is underserved. Our choice to partner with Accor highlights our focus on operational excellence and long-term value.
“The hospitality academy is crucial, alongside physical hotels, for developing local talent to sustain international standards. It will support our portfolio and enhance Nigeria’s hospitality workforce.
“This investment aligns with Shoreline’s broader focus on strategic assets in energy, infrastructure, and industrial development. We view hospitality as a natural extension: real infrastructure supporting economic activity, local capability, and national growth.”
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