In a significant move to stabilise Nigeria’s aviation sector, President Bola Ahmed Tinubu has unveiled plans to ease the financial strain on domestic airlines by offering debt relief and reviewing multiple charges on air travel.
The announcement was disclosed by the Minister of Aviation and Aerospace Development, Festus Keyamo, following a high-level meeting in Abuja involving airline operators and oil marketers. The gathering focused on addressing the soaring cost of Jet A1 fuel, a major challenge currently affecting airline operations across the country.
According to Keyamo, the President has shown strong concern over the situation and is considering granting substantial concessions on debts owed by airlines to aviation regulatory bodies such as the Nigerian Airspace Management Agency (NAMA), Federal Airports Authority of Nigeria (FAAN), and Nigerian Civil Aviation Authority (NCAA). While the exact scale of the relief is yet to be determined, the move is expected to provide much-needed financial breathing space for operators.
Beyond debt relief, the Federal Government is also set to tackle the long-standing issue of multiple taxes, levies, and fees imposed on domestic airline tickets. The President has directed the formation of a committee that will review these charges and recommend reductions or eliminations where necessary. The aim is to lower ticket costs and make air travel more affordable for Nigerians.
Keyamo noted that the committee will operate under a defined timeline to ensure swift action, reflecting the administration’s urgency in responding to the crisis. He also hinted at future engagements between the President and airline operators to address broader concerns, including access to funding and long-term industry sustainability.
Representing airline operators, the Chairman of Air Peace, Allen Onyema, urged the government to go further by granting a full waiver of all outstanding debts rather than partial relief. He also called for a temporary suspension of financial obligations until global supply disruptions ease, particularly those affecting fuel availability.
Onyema commended President Tinubu’s responsiveness, referencing the swift removal of the 4% Free on Board (FOB) charge for airlines. However, he emphasised that deeper structural challenges remain, especially the high cost of financing in Nigeria’s aviation sector.
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He pointed out that while airlines globally access loans at interest rates as low as 3%, Nigerian operators face rates between 30% and 35%, making profitability extremely difficult. To address this, Onyema appealed for increased funding support for the Bank of Industry, which currently offers relatively lower interest rates to businesses.Industry stakeholders believe that if fully implemented, these proposed measures could provide immediate relief and set the stage for long-term reforms in Nigeria’s aviation landscape.
