The Federal Government is considering waiving debts owed by domestic airlines to aviation agencies as part of emergency measures to address the crisis triggered by a surge in the price of Jet A1 fuel.
Aviation Minister Festus Keyamo disclosed this at a high-level meeting in Abuja on Wednesday, convened to find solutions to the fuel price crisis that had pushed airlines to the brink of a nationwide shutdown.
Keyamo said President Bola Tinubu had mandated him to bring a formal request for a debt waiver on what domestic carriers owe agencies including the Nigerian Airspace Management Authority, the Federal Airports Authority of Nigeria, and the Nigerian Civil Aviation Authority.
“The first request that he will consider and grant is a generous discount on the debts the airlines are owing the aviation agencies,” Keyamo said, adding that the specific percentage would be determined by the President.
The minister also said Tinubu would consider setting up a committee to review and reduce the burden of levies, taxes, and fees on domestic airline tickets.
“This request has been on for a long time. Mr President will put the team together and give them a deadline to report to him as quickly as possible on the government fees and charges and levies that we can take off domestic tickets for now,” Keyamo said.
He added that the President planned to meet airline operators directly to discuss broader issues including access to capital.
Air Peace Chairman Allen Onyema, who also spoke at the meeting, said the crisis stemmed from a disproportionate rise in Jet A1 prices relative to global crude oil movements.
He said aviation fuel prices in Nigeria surged by about 300 per cent following the Hormuz blockade, far exceeding the rise in the cost of crude oil worldwide.
“These airlines are bleeding. We are bleeding,” Onyema said, adding that the threat to suspend operations was driven not by choice but by an inability to meet both fuel costs and safety obligations simultaneously.
Onyema also raised concerns about the cost of financing for Nigerian carriers, noting that while airlines globally borrow at around three per cent, Nigerian operators pay between 30 and 35 per cent.
“That is why airlines owe FAAN, NCAA, everybody, because we are the sacrificial lambs,” he said, calling on the government to capitalise the Bank of Industry to provide cheaper funding for the sector.
The Airline Operators of Nigeria had earlier threatened to ground all domestic flights from April 20 after Jet A1 prices climbed from approximately N900 per litre in late February to over N3,300 per litre within weeks.
The operators subsequently suspended the planned shutdown following appeals by Keyamo, pending the outcome of government discussions.
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