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By Ayo Kehinde
President Bola Tinubu has approved a 30% reduction in debts owed by national airlines to federal aviation agencies, offering crucial financial relief to operators grappling with rising operating costs, particularly sharp increases in aviation fuel prices.
According to Reuters, the Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed the presidential approval on Thursday evening, describing it as a decisive intervention to support Nigeria’s aviation industry and avoid disruptions to air travel services.
Keyamo said the approval was conveyed in an official communication by the President’s Chief of Staff, Femi Gbajabiamila, underscoring the administration’s commitment to addressing the urgent challenges facing local carriers.
“This evening Mr. President has definitively approved a 30% discount,” he said, confirming that the directive takes effect immediately.
The debt relief covers a wide range of financial obligations owed by airlines to critical aviation agencies, including the Federal Airports Authority of Nigeria (FAAN), the Nigerian Airspace Management Agency (NAMA) and other statutory bodies responsible for regulating and supporting aviation operations.
The federal government’s decision comes at a critical time when domestic airlines are struggling with unprecedented increases in the cost of Jet A1 fuel, a major component of airline operating expenses.
Airline Operators of Nigeria (AON) had earlier warned of a possible shutdown of operations from April 20, citing unsustainable fuel prices and mounting operational losses. According to the group, the price of aviation fuel increased from about N900 per liter at the end of February to up to N3,300 per liter in a few weeks, an increase of over 300%.
The planned closure was, however, suspended following calls from the Minister and ongoing engagement with stakeholders, allowing operations to continue while solutions were explored.
Keyamo had previously hinted that the federal government was considering a number of policy options, including debt restructuring and financial support measures, to stabilize the aviation sector and prevent a systemic crisis. The latest approval is widely seen as the first concrete step in what industry observers expect to be a broader package of reforms aimed at improving sustainability, improving regulatory efficiency and promoting investor confidence in the Nigerian aviation industry.
Reacting to the development, Air Peace President Allen Onyema, who has been one of the industry’s most outspoken voices on the crisis, welcomed the government’s intervention but reiterated concerns over fuel prices.
“The truth is, marketers need to be forced to explain how they got a 300% increase,” Onyema said.
He questioned pricing dynamics within the downstream sector, pointing out that even supply from the Dangote refinery – which he described as relatively cheaper – did not translate into lower fuel costs for airlines.
“Even Dangote is surprised, because what he sells to us is still the cheapest, and some of it goes up from there. So why this astronomical increase?” he asked.
Onyema warned that airlines are operating under severe financial strain, many relying on loans to finance fuel purchases while adhering to stringent safety, regulatory and maintenance requirements.
Aviation industry stakeholders say the debt relief initiative will significantly reduce the financial burden on airlines, many of which have accumulated debt from parking fees, navigation fees and other operating taxes over time. The intervention is also expected to improve liquidity within the sector, allowing operators to redirect resources towards safety compliance, fleet maintenance and service provision.
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