By Ayo Kehinde
President Bola Tinubu has approved a 30 percent reduction in debts owed by domestic airlines to federal aviation agencies, offering critical financial relief to operators grappling with surging operational costs, particularly the sharp rise in aviation fuel prices.
According to Reuters, the Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed the presidential approval on Thursday night, describing it as a decisive intervention to sustain Nigeria’s aviation industry and avert disruptions in air travel services.
Keyamo said the approval was conveyed in an official communication from the President’s Chief of Staff, Femi Gbajabiamila, underscoring the administration’s commitment to addressing pressing challenges confronting local carriers.
“This evening, Mr President has definitely approved a 30 percent discount”, he said, confirming that the directive takes immediate effect.
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 air transport operations.
The Federal Government’s decision comes at a critical time when domestic airlines are battling unprecedented increases in the cost of Jet A1 fuel, a major component of airline operating expenses.
Operators under the 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 surged from about N900 per litre in late February to as high as N3,300 per litre within weeks—representing an increase of over 300 per cent.
The planned shutdown was, however, suspended following appeals by the minister and ongoing engagement with stakeholders, allowing for continued operations while solutions were being explored.
Keyamo had earlier hinted that the Federal Government was considering a range of policy options, including debt restructuring and financial relief measures, to stabilise 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 enhancing sustainability, improving regulatory efficiency, and fostering investor confidence in Nigeria’s aviation industry.
Reacting to the development, Chairman of Air Peace, Allen Onyema, who has been one of the most vocal industry voices on the crisis, welcomed government intervention but reiterated concerns over fuel pricing.
“The truth is that the marketers must be brought to book to explain how they got about the 300 percent increase”, Onyema said.
He questioned the pricing dynamics within the downstream sector, noting that even supply from the Dangote Refinery—which he described as relatively cheaper—had not translated into lower fuel costs for airlines.
“Even Dangote is surprised, because what he is selling to us still remains the cheapest, and some of them lift from there. So why the astronomical rise?” he queried.
Onyema warned that airlines are operating under severe financial strain, with many relying on loans to finance fuel purchases while still meeting strict safety, regulatory, and maintenance requirements.
Aviation stakeholders say the debt relief initiative will significantly reduce the financial burden on airlines, many of which have accumulated debts from parking fees, navigational charges, and other operational levies over time. The intervention is also expected to improve liquidity within the sector, enabling operators to redirect resources toward safety compliance, fleet maintenance, and service delivery.
