CONSUMER PROTECTION IN THE NIGERIAN AVIATION INDUSTRY: BALANCING PROFITABILITY AND PASSENGERS’ RIGHTS.

INTRODUCTION

The Nigerian aviation industry has experienced exponential growth in recent years with an increasing number of passengers relying on air travel for both domestic and international flights. Consequently, consumer protection is critical in the Nigerian aviation industry, where passengers are often quite vulnerable to exploitation due to their limited knowledge of the complex regulatory framework governing air travel. All passengers have the right to safe and reliable air travel and it is the responsibility of airlines and regulators to ensure that these rights are duly protected. However, the industry has also faced challenges related to consumer protection, especially concerns over service quality and passenger rights. While airlines must remain financially viable, passengers also have fundamental rights that must be safeguarded. This article explores the delicate balance between the profitability of airlines and passenger rights in the Nigerian aviation industry.

REGULATORY FRAMEWORK

Consumer protection in Nigeria’s aviation sector is governed by a robust legal and regulatory framework designed to safeguard passenger rights while ensuring airlines’ compliance with industry standards. We have detailed below the industry regulatory framework.

1. The Nigerian Civil Aviation Authority (NCAA) and the Civil Aviation Act, 2022 (CAA)

The Department of Consumer Protection within the Directorate of Public Affairs and Consumer Protection of the Nigerian Civil Aviation Authority (NCAA) serves as the primary regulatory body for the aviation industry. Originally established by Decree 49 of 1999[i], the NCAA is vested with the authority to regulate aviation safety independently, free from political interference. Additionally, the Civil Aviation Act (‘The Act”) grants the NCAA oversight responsibilities over airports, airspace management, meteorological services, and economic regulation of the aviation industry.

2. The Nigerian Civil Aviation Protection Regulations, 2023

Part 19 of the Nigeria Civil Aviation Regulations[ii] comprehensively outlines the rights and responsibilities of passengers, as well as the obligations of airlines, travel agents, and tour operators. These regulations specifically address key consumer protection issues, including:

• Assistance for persons with reduced mobility
• Support for aircraft accident victims and their families
• Compensation for denied boarding
• Guidelines on delayed or lost baggage
• Provisions for flight delays and cancellations[iii]

Part 17 of the NCARs 2023 mandates operators to develop security programs that provide for the safety of passengers, crew and their property. Additionally, Part 20 also provides for the mandatory and non-punitive voluntary incident reporting on data collection by carriers. Generally, the NCARs 2023 emphasizes the need for a balance between the protection of safety information to improve aviation safety and the need for proper administration of justice.

3. The Federal Airports Authority of Nigeria (FAAN) Act

Part II of the Federal Airports Authority of Nigeria (FAAN) Act[iv] establishes the principal functions of the authority, some of which include:

• Ensuring adequate conditions for passenger and cargo transportation by air while regulating the carriage of prescribed goods
• Providing airport accommodations and necessary facilities for efficient passenger and freight handling
• Enhancing aviation security through the deployment of adequate personnel and infrastructure at all airports
• Developing and maintaining surface transport facilities within airport premises to improve accessibility and logistics

4. The Constitution of the Federal Republic of Nigeria, 1999 (as amended)

The Constitution of the Federal Republic of Nigeria[v] grants the Federal High Court exclusive jurisdiction over all matters related to aviation, ensuring that legal disputes concerning airline operations, passenger rights, and regulatory compliance are handled at the appropriate judicial level.

By implementing these regulatory frameworks, the Nigerian aviation industry seeks to create a transparent and accountable system that clearly defines the rights, duties, and obligations of both airlines and passengers. Strengthening these legal provisions is essential for ensuring fairness, efficiency, and consumer confidence in the sector.

5. The Federal Competition and Consumer Protection Act 2018 (FCCPA)

The Federal Competition and Consumer Protection Commission is an agency established by the FCCPA to enforce and administer the provisions of the Act and any other enactment with respect to competition and protection of consumers. The commission is to give and receive advice from other regulatory agencies such as the aviation industry on consumer protection and competition matters.

6. The Nigerian Airspace Management Agency (Establishment) Act 2022 (NAMA Act)

The NAMA Act established the Nigerian Airspace Management Agency (NAMA). Its primary function is to provide air navigation services and ensure safe, sufficient and regular air travels in Nigeria. The agency is tasked with creating conducive conditions for the development of the air transport services for the safety of passengers.

7. The Nigerian Safety Investigation Bureau Act 2022

This act establishes the Nigerian Safety Investigation Bureau whose powers include to investigate or cause to be investigated any transportation occurrence and cause of a civil aircraft occurrence.[vi]

8. The Montreal Convention 1999

The Montreal Convention is a key international treaty for aviation liability. The primary objective of the convention is to provide for equitable compensation for the death and injury of passengers and damage to cargo and baggage that occur in international carriages as well as to facilitate the efficient operation of international carriage by air of passengers, baggage and cargo[vii]. The convention has been domesticated in Nigeria by the Civil Aviation Act 2022 ensuring that its provisions are now enforceable in Nigeria and providing a legal framework for passengers to pursue compensation for damages.[viii]

9. The Nigeria Data Protection Act 2023 (NDPA)

The Nigeria Data Protection Act which was recently passed into law, governs transactions regarding the exchange of personal data. Personal Data, as defined by the NDPA, is any information relating to an individual who can be identified or is identifiable…”. Therefore, to that effect, passengers have a right to  

• any information relating to the processing of their data, in a concise, transparent, intelligible and easily accessible form in writing or orally when requested by the passenger and
• request the deletion of any personal data that is either no longer necessary, has been unlawfully processed or for which consent has been withdrawn.

DEVELOPMENTS AND CHALLENGES

One of the primary challenges in balancing airline profitability and passenger rights is the need to ensure that airlines remain afloat and financially viable. Airlines operating in Nigeria face significant operational costs like maintenance and regulatory fees. This has somewhat made these airlines compromise on passengers’ rights by imposing additional fees, reducing service quality or limiting access to compensation where required. Airlines operate in a highly competitive and dynamic market, where they must constantly adapt to regulatory requirements and economic conditions. Compromising on the passengers rights, impairs trust, loyalty and ultimately affect negatively, the long term profitability of the airlines.

There have been several developments related to consumer protection in the Nigerian aviation industry in recent years. Some of which include:

1. The Nigerian legislature enacted the Civil Aviation Act 2022 which repealed the Civil Aviation Act 2006. The new Act recognizes the NCAA as the regulator for technical and safety issues in the industry. Section 8 of the CAA 2022 empowers the NCAA to make regulations on various issues relating to registration of aircrafts, issuance of rules and regulations on aviation environmental protection, issuance of certificate of air worthiness to aircraft, issuance of license to personnel, orderly development of Nigerian air transport sector for efficiency, regularity and consumer satisfaction and so on.
2. The establishment of the Consumer Protection Department by the NCAA to ensure that passengers rights are protected.
3. Establishment of Part 19 of the Consumer Protection Regulations. Part 19 of the Nigeria Civil Aviation Regulations (Nig. CARs, aims to safeguard passenger rights and outline airlines’ obligations, covering issues like denied boarding, flight delays/cancellations, and lost baggage. The NCAA is responsible for implementing and enforcing the provisions of Part 19 and has stated that it will sanction airlines operators for delayed ticket refunds thereby ensuring strict adherence to the provisions of part 19.

BALANCING PROFITABILITY AND PASSENGERS’ RIGHTS

Achieving a balance between airline profitability and passenger rights in Nigeria’s aviation sector requires a multi-faceted approach. Enforcing stricter penalties on airlines that violate consumer protection regulations will ensure compliance and deter unfair practices such as unjustified flight cancellations, overbooking, and failure to compensate passengers for delays. The enhancement of consumer protection awareness is equally critical, as many Nigerian passengers are unaware of their rights. Public education campaigns, legal literacy programs, and easily accessible grievance redress mechanisms will empower travelers to demand fair treatment. Furthermore, government support for airline profitability through tax reliefs, subsidized aviation fuel, improved airport infrastructure, and access to low-interest credit can ease financial burdens on airlines, ensuring they can meet their obligations without jeopardizing their economic sustainability. By combining these strategies, Nigeria can foster a fair aviation sector where both airlines and passengers benefit.

Furthermore, airlines operating in Nigeria can adopt the following best practices:

1. Maintaining high service standards is crucial in the aviation industry, encompassing factors such as adequate staffing, clean facilities, and most importantly, reliable aircraft. The failure to properly maintain aircraft and exercise due diligence in ensuring their safety is a direct violation of passengers’ fundamental right to secure travel. This responsibility falls under the oversight responsibility of the Nigerian Civil Aviation Authority (NCAA), whose primary function is to ensure the airworthiness of aircraft operating within the country. Effective regulation by the NCAA is essential in safeguarding the safety of air travelers and upholding industry standards. A pertinent example is the case of Harka Air Services Nig. Ltd v. Keazor[ix], where an aircraft was involved in a crash after violently hitting the tarmac and catching fire at the Ikeja, Lagos The Respondent claimed to have sustained injuries and lost personal effects due to the negligence and willful misconduct of the defendant, who failed to avoid takeoff despite adverse weather conditions. The appellate court ruled in favour of the Respondent, upholding his right to care[x] and affirming the importance of the airline’s duty of care to its passengers.
2. Establish and maintain effective communication channels with passengers, including social media, email and phone support. In Aero contractors Nig Ltd v Nigerian Civil Aviation Authority & Ors[xi] where the court held that failure of an airline to provide adequate reasons for prolonged delays is a violation of passenger’s rights under the provisions of Part 19 of the NCAR and entitled the passengers to compensation.
3. Provide fair compensation and assistance to passengers in the event of disruptions such as delay and cancellations of flights. Such compensations could be food, accommodation, transportation or possible discounts future bookings. In Ethiopian airlines v Ajayi[xii], the court upheld the passengers right to compensation after the airline failed to give sufficient notice of cancellation and could not demonstrate extraordinary circumstances. A passenger is entitled to seven days notice of cancellation and possible offer of rerouting as regards international flights[xiii].

FAAN and NCAA play a vital role in handling passenger complaints related to airport services, including issues arising from delays, cancellations, and customer experience within airport facilities. Passengers can report airport-related issues (e.g., poor facilities, mishandling of baggage, or issues with airport services) to FAAN’s Consumer Protection Directorate at the respective airport. Complaints can also be sent via FAAN’s official website- @faan.gov.ng, customer service desks, or social media handles- @faan_official on all platforms.

Passengers can also lodge formal complaints directly with the NCAA Consumer Protection Department (CPD) at the airport where the issue occurred or via the CPD portal. Complaints can also be filed via NCAA’s website- ncaa@gov.ng, email- info@ncaa.gov.ng, or designated consumer protection hotlines.

4. Encouraging passenger feedback for service improvement and address concerns.
5. Provide clear and timely information to passengers about flight schedules, delays and cancellation.

CONCLUSION

Consumer protection in the aviation industry is very pertinent for maintaining trust and ensuring the growth of the industry, hence requires a delicate balance between airline profitability and passengers’ rights. By strengthening regulations, improving enforcement mechanisms, and promoting public awareness, Nigeria can create a balanced aviation sector that protects both airline interests and consumer rights. Ultimately, a balanced approach that prioritizes both airline profitability and passengers’ rights is essential for maintaining a safe, reliable and sustainable aviation industry in Nigeria.

REFERENCES

[i] The NCAA was established at the end of the military regime in Nigeria by Decree 49 of 1999. The Civil Aviation Act 2022 retained the NCAA as the regulator for technical and safety issues in the aviation industry. 

[ii] Nigeria Civil Aviation Regulations 2023

[iii] Depending on the length of delay, airlines are required to provide some form of compensation such as a phone call/sms, refreshments, reimbursement and hotel accommodation

[iv] Section 3 FAANA

[v] Section 251 CFRN 1991 (as amended)

[vi] Section 5 of the Nigerian Safety Investigation Bureau Act 2022

[vii] Chapter 5.8, Montreal Convention on International Carriage by Air

[viii] Nigeria is also a signatory to the Geneva Convention, Cape Town Convention, Chicago Convention, the Yamoussoukro Decision, the SAATM and AFCFTA

[ix] (2011) 13 NWLR (pt 1264) 320

[x] Section 19.10 of Part 19 of the NCAA Regulations

[xi] Unreported case, Federal High Court of Nigeria (2020)

[xii] (2015) LPELR-24753 (CA)

[xiii] Section 19.7(iv) of Part 19 of the NCAA Regulations