April 23, (THEWILL) — The Federal Government has unveiled a major relief package for Nigeria’s aviation sector, with plans to grant airlines substantial discounts on debts owed to regulatory agencies, in a decisive move to cushion the impact of soaring aviation fuel costs and sustain industry operations.
The intervention, announced on Wednesday in Abuja by the Minister of Aviation and Aerospace Development, Festus Keyamo, followed high-level engagements with airline operators who had earlier threatened to suspend services over the sharp rise in the price of Jet A1 fuel.
Keyamo disclosed that President Bola Tinubu has taken a proactive stance on the crisis, directing the immediate submission of a formal proposal outlining the scale of discounts to be granted on airlines’ outstanding debts to key aviation agencies, including the Nigerian Civil Aviation Authority (NCAA), Federal Airports Authority of Nigeria (FAAN), and the Nigerian Airspace Management Agency (NAMA).
“I had the privilege of meeting with Mr President to brief him on the outcome of our discussions with airline operators. He has directed that a formal request be submitted immediately, indicating the proposed percentage discount. He assured that he would consider and approve a generous concession to ease the financial burden on operators”, Keyamo said.
The minister emphasised that the President’s swift response underscores his administration’s commitment to safeguarding the aviation industry, which remains a critical enabler of economic growth, connectivity, and investment.
In addition to the debt relief initiative, Keyamo revealed that the President is set to inaugurate a high-powered committee to comprehensively address the long-standing concerns around multiple taxation, levies, and charges on domestic air travel. The committee is expected to deliver recommendations within a short timeframe, signaling a broader reform agenda aimed at improving the ease of doing business in the sector.
President Tinubu, according to the minister, also expressed deep appreciation to airline operators for maintaining fare stability despite rising operational costs, acknowledging the resilience and patriotism demonstrated by the industry during a challenging period.
On the fuel crisis, the Permanent Secretary of the Ministry of Petroleum Resources, Patience Oyekunle, announced that a follow-up meeting with oil marketers has been scheduled for today, Thursday, April 23, to address pricing concerns and ensure transparency in the Jet A1 supply chain.
Industry stakeholders have welcomed the government’s intervention as timely and impactful. Speaking on behalf of the Airline Operators of Nigeria (AON), the Chairman of Air Peace, Allen Onyema, commended the President for the proposed debt discount, describing it as a critical lifeline for operators grappling with unprecedented cost pressures.
Onyema explained that the earlier threat to suspend operations was driven by necessity rather than intent, noting that airlines were struggling to sustain operations amid skyrocketing fuel prices.
“We threatened to shut down not because we wanted to, but because we could no longer continue borrowing to fund fuel purchases at the expense of safety and maintenance. Safety remains non-negotiable, and we will not compromise standards”, he said.
Onyema highlighted that the cost of Jet A1 in Nigeria had surged disproportionately by as much as 300 percent, following global supply disruptions linked to tensions around the Strait of Hormuz, a development he said has placed immense strain on local operators.
Despite these challenges, Onyema noted that airlines responded promptly to the government’s appeal to maintain operations, reflecting growing confidence in ongoing reforms and policy support.
He also called for further measures, including temporary waivers on existing debts and increased funding support for the Bank of Industry to enable airlines access affordable credit facilities at lower interest rates.
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