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Reputation Driving Domestic Airfares In Nigeria

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Chido Nwakanma
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Check out the scene. It is the 01 floor of the Transcorp Hilton, Abuja. Airlines have their ticketing stands and offices herein. Office or stand may be an index of how prosperous the airline is.

Abuja-Lagos for that evening is almost fully booked on this Thursday. Getting out of Abuja on Fridays is a stretch but this has now extended to Thursdays.

The story of airfares on the domestic routes gets more interesting on such days. Arik Air has a slot for a princely N44, 000.

What about the next morning? It is N36, 000 economy on Arik Air. However, comparatively, it is N19 000 by Medview Airline and N18 000 by Dana Air.

Welcome to the new price regime in domestic airfares driven by reputation. It bears out the thesis that reputation creates wealth, first put in quantifiable terms in the work by Dr. Charles Fombrun hitherto of Harvard Business School, Reputation: Realising Value from the Corporate Image.

Price equivalence was the norm for many years on the domestic air routes. Then smart corporate executives at cash-stressed Aero Contractors cooked up the idea of lower upfront fares to lock in income.

Passengers booked two weeks ahead or more. The closer to proposed departure date the more expensive the fare.

Aero could thus turnaround the income from pre-booking several times before the passenger actually flies.

It generated cash flow for the airline, made air travel affordable to many –thus expanding the market- while temporarily positioning the airline as friendly.

It also kicked in the era of market driven prices that often seem capricious. You could be on the queue and pay N5000 more than one or two persons right ahead of you as the airlines switch prices at will.

Their counter staff are almost always incapable of providing lucid rationale for the changes, which are seemingly driven by competition, supply and demand and the operational exigencies of the business.

The variable pricing regime in domestic airfares is significant in marketing and reputation management.

Marketing experts understand that price is the most significant of the Ps in the marketing relationship.

Price signifies value, and all business is about the exchange of value. Price is at the intersection between the Ps of the seller and of the buyer.

Price represents income to the seller and expense to the buyer all of which speak of value.

Marketing traditionally speaks of the 4Ps to mean product, place, price and promotion.

However, for the consumer, the 4Ps represent purpose, performance, price and presentation. Price is common and constant in both the Ps of the marketer and of the consumer.

Purpose and performance of that purpose determines the price a consumer is willing to pay while all of the foregoing is enhanced by its presentation. Welcome to the reputation economy.

Reputation is clearly the driver of the variable pricing regime in domestic air fares with Arik Air commanding premium pricing.

Arik’s dominance is a function primarily of perception, a key component of reputation. Since the incidents of air crashes and the link to aged aircraft, airlines with newer planes on their fleet are perceived as safer. Aero has assiduously presented the fact of its younger fleet.

The point will bear emphasis that the dominance of a particular airline on the domestic routes – resulting in commanding premium fares- owes to perception more than any other factor. Yes, it has more planes. It covers more routes.

But its service delivery is not better than that of those with only two aircraft.

In the reputation economy, perception matters.

Reputation is a driver of business value. Sixty percent of respondents to a survey by The Reputation Institute believe that reputation has a high financial impact on their companies.

According to the 2013 RepTrack 100 Report, respondents also acknowledge that reputation helps

•         Increase customer retention

•         Increase in sales/revenue

•         Increase in market share

•         Reduce cost of hiring/retention

•         Increase in share price

•         Increase in profitability

•         Lower cost of doing business.

The reputation economy, the Reputation Institute states, “is a new market place reality in which people buy products, take jobs, and make investments based primarily on their trust, admiration and appreciation for the companies and institutions that stand behind them.”

As with airfares, companies in all sectors of the economy would hereafter extract value based on their reputations and consumer perception of the value they offer.

At the macro level, the Nigerian aviation sector needs a lot of work to burnish its reputation against the backdrop of statistics that cast doubts about the sector’s viability such as this: 139 private jets, 7 Airlines, 57 planes, 33 failed airlines in Nigeria.

Chido Nwakanma is a communication strategist and marketer with extensive media and industry experience consulting in Nigeria and Africa. He wrote from Lagos.


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Nnaji, Former Minister Seeks Out-of-court Settlement over Certificate Forgery Allegations

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Nnaji, Former Minister Seeks Out-of-court Settlement over Certificate Forgery Allegations

Uche Nnaji

Uche Nnaji, former minister of Science, Innovation and Technology, has indicated interest to settle out of court with the University of Nigeria, Nsukka, and other parties in a certificate forgery dispute.

This was disclosed on Monday during proceedings before Justice Hauwa Yilwa of the Federal High Court Abuja, where the suit came up for hearing of pending applications.

Nnaji had approached the court in October 2025, following an investigation by Premium Times, alleging that the minister had forged his first degree and National Youth Service Corps certificates.

The report further faulted the minister for submitting the forged documents to President Bola Tinubu and the Senate during his ministerial screening.

Nnaji had subsequently resigned his position as minister following widespread controversy, stating that he did not want the issue to become a distraction from the activities of the administration.

The case has, however, stalled at the courts since it was instituted, due to procedural setbacks including issues relating to the service of court processes and multiple preliminary objections filed by the defendants.

When the matter was called on Monday, Ope Muritala, counsel to Nnaji,  informed the court that although the case was slated for a hearing of pending applications, there was a fresh development, adding that parties were exploring an amicable resolution, requesting an adjournment to enable negotiations to continue.

“There is a new development as parties are exploring an out-of-court settlement,” he told the court.

P.C. Ike and N.H. Obah, lawyers representing the first (Minister of Education) and second (National Universities Commission) defendants, told the court they were not previously aware of the settlement discussions until they arrived at the court, but did not oppose the request for an adjournment to allow the talks to proceed.

Meanwhile, counsel to the third to seventh defendants, including the UNN and its principal officers, Chidubem Ugwueze, however, confirmed that the move towards settlement had been communicated earlier.

He told the court that a Senior Advocate of Nigeria, Chris Uche, who is leading the defence team, had informed him of the development.

According to him, the information originated from another Senior Advocate, Wole Olanipekun, representing Nnaji.

Although he did not object to the proposed settlement, Ugwueze urged the court to proceed with hearing the defendants’ pending motion for regularisation in the event that settlement talks collapse.

However, Justice Yilwa declined the request, stating that it would be more appropriate to consider such applications only if the out-of-court resolution efforts fail.

In view of the parties’ disposition, the court adjourned the matter to July 8, 2026, for report of settlement or continuation of proceedings.


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Nomination Opens for Consumers Value Awards

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In a bold step to deepen consumer voice and accountability across both private and public sectors, BrandXchange the organisers of the Consumers Value Awards have announced the official launch of the 5th edition with a groundbreaking theme: “Beyond Satisfaction: Redefining Consumer Value in a New Economy.”

Scheduled to hold on 23rd September 2026, this year’s edition introduces a Consumer & Citizen Value Scorecard, a nationwide voting platform that places the power of evaluation directly in the hands of consumers. Nigerians can nominate their brands through this link: https://consumervalue.vercel.app/nominate

Speaking on the theme, the Convener, Akonte Ekine, noted that the concept of consumer satisfaction is no longer sufficient in today’s economic climate.

“For too long, satisfaction has been the benchmark. But in reality, many consumers who are ‘satisfied’ still feel overcharged, underserved, or unheard. This year, we are going beyond satisfaction to focus on what truly matters—real value. Value in pricing, value in service, and value in trust,” he said.

He further explained that the introduction of the Consumer & Citizen Value Scorecard marks a significant evolution of the Awards into a data-driven, people-powered evaluation system.

“Through this Scorecard, Consumers will not just vote—they will assess. They will tell us which brands deliver fair value and which public institutions are truly serving the people. This is about giving consumers and citizens a structured voice that drives recognition and accountability,” Ekine added.

Unlike traditional award systems driven by panels or jury decisions, the Consumers Value Awards remain strictly based on consumer voting, ensuring that winners emerge from real-life experiences and public perception.

The 2026 edition expands its scope to include public sector institutions, reinforcing the idea that citizens are not only customers of brands but also consumers of government services.

“From banking halls to public hospitals, from telecom services to regulatory agencies, Nigerians interact with systems every day. This initiative ensures that both brands and institutions are held to the same standard—delivering value in a challenging economy,” he stated.

The voting process will measure key indicators such as:

  • Value for money
  • Trust and transparency
  • Service delivery quality
  • Responsiveness to consumer needs
  • Accessibility and inclusiveness

Insights from the voting process will culminate in a Consumer & Citizen Value Index, offering one of the most comprehensive snapshots of consumer sentiment.

The organisers believe the initiative will not only celebrate excellence but also drive improved performance, strengthen consumer trust, and encourage responsible service delivery across sectors.

Voting is expected to commence in June 2026, with nominations open to the general public via www.consumersvalueawards.com.


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IHS Nigeria, Ilorin Innovation Hub Showcase 19 High Growth Startups

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IHS Nigeria, part of the IHS Holding Limited (NYSE: IHS) (“IHS Towers”) group, one of the largest independent owners, operators, and developers of shared communications infrastructure in the world by tower count, has partnered with the Ilorin Innovation Hub to host the maiden edition of its Demo Day at the state-of-the-art facility in Ilorin, Kwara State.

The event, themed “The Convergence,” is designed to spotlight 19 emerging startups that have participated in the Hub’s accelerator and incubation programs, and invite them to pitch their solutions to investors, venture capital funds, corporate partners, and the media.

The Ilorin Innovation Hub, a partnership between the Kwara State Government and IHS Nigeria, began operations in February 2025 with programs managed by Co-creation Hub and Future Africa.

The Demo Day presents an opportunity to take stock and assess how the Ilorin Innovation Hub is helping to nurture and bring to life groundbreaking ideas and solutions supporting economic resilience and addressing real-world societal challenges. The event is expected to help unlock funding opportunities, foster strategic collaborations, and amplify visibility for these startups that are developing solutions across critical sectors including agriculture, health-tech, green energy, lifestyle, and digital services.

Beyond the startup showcase, the Demo Day highlights Kwara State’s continued commitment to driving digital innovation and entrepreneurship, and IHS Nigeria’s commitment to bridging the digital divide and deepening the digital economy in Nigeria.

Mohamad Darwish, CEO, IHS Nigeria, commented, “We believe innovation and digital technology are powerful drivers of economic growth and sustainable development. This is why we partnered with the Kwara State Government on the Ilorin Innovation Hub. It is impressive and very fulfilling to see the diverse portfolio of ideas and solutions showcased today from the hub within a year of the commencement of operations.

This speaks to the depth of creativity among Nigerians and what is possible when they are equipped and supported. Today’s event makes me proud of our investment in the space and underscores IHS Nigeria’s continued commitment to supporting technology, entrepreneurship, and digital innovation in Nigeria.”

Temi Kolawole, Managing Director, Ilorin Innovation Hub, commented, “Today, we showcase 19 startups that have shown that when you combine talent with the right support, the results speak for themselves. The Ilorin Innovation Hub exists to ensure that geography is never a barrier to building something extraordinary, and this Demo Day is proof that we are on the right track.”


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