FG unveils debt relief to avert aviation crisis
By Osordi Ayomide
The Federal Government has rolled out a series of emergency measures aimed at stabilising Nigeria’s aviation sector following a sharp rise in the cost of aviation fuel, widely known as Jet A1.
This comes amid mounting pressure from domestic airline operators who had warned of a possible shutdown of operations due to escalating costs.
Speaking at a stakeholders’ meeting in Abuja, the Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed that the government is considering granting discounts on debts owed by airlines to key aviation agencies.
According to him, the decision was taken after consultations with President Bola Ahmed Tinubu, who has directed swift intervention to prevent disruption in the sector.
Keyamo explained that the proposed relief would cover outstanding obligations to agencies such as the Nigerian Airspace Management Agency (NAMA), Federal Airports Authority of Nigeria (FAAN), and the Nigerian Civil Aviation Authority (NCAA).
“The President has asked airlines to submit formal requests, after which the extent of the discounts will be determined,” the minister said.
In addition, the Federal Government has approved the constitution of a committee to review multiple taxes, levies, and charges imposed on domestic air travel. The committee is expected to recommend measures to reduce the financial burden on both operators and passengers.
The intervention follows a warning by the Airline Operators of Nigeria (AON), which had threatened to suspend flight operations nationwide over the soaring cost of Jet A1 fuel.
Industry figures show that aviation fuel prices surged from about ₦900 per litre in February to over ₦3,300 in recent weeks, representing an increase of more than 300 per cent.
Chairman of Air Peace, Allen Onyema, described the development as “abnormal” and unsustainable, noting that the increase does not reflect global crude oil price trends.
He warned that airlines are struggling to meet operational costs without compromising safety, stressing that operators may be forced to halt services if urgent measures are not implemented.
Onyema also called on the government to investigate fuel pricing mechanisms and ensure greater transparency among marketers. He further urged authorities to improve access to affordable financing, noting that Nigerian airlines face interest rates of up to 35 per cent, compared to about three per cent in other countries.
Meanwhile, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has indicated that discussions will be held with fuel marketers to address pricing concerns.
Stakeholders say the government’s intervention has, for now, averted the planned shutdown, as operators agreed to suspend their earlier ultimatum pending the outcome of ongoing engagements.
Analysts, however, note that while the measures may provide short-term relief, lasting stability in the aviation sector will depend on broader reforms, including improved financing structures and a more transparent fuel supply system.