Nigeria’s President, Bola Ahmed Tinubu, has unveiled plans to ease financial pressures on domestic airlines, including potential debt waivers and the removal of multiple taxes and levies on air travel, as the sector grapples with soaring Jet A1 fuel prices.
The announcement was disclosed by Aviation Minister, Festus Keyamo, following a high-level meeting in Abuja with airline operators and oil marketers convened to address the escalating cost of aviation fuel.
Keyamo said the president had directed his ministry to urgently present proposals aimed at cushioning the impact of the crisis. Among the measures under consideration is a significant reduction in debts owed by airlines to key aviation agencies, including the Nigerian Airspace Management Agency (NAMA), the Federal Airports Authority of Nigeria (FAAN), and the Nigerian Civil Aviation Authority (NCAA).
“The president is deeply concerned about the situation,” Keyamo said, adding that the exact scale of any debt relief would be determined by Tinubu.
He also revealed plans to establish a committee tasked with reviewing longstanding concerns over multiple taxation in the aviation sector. The committee will assess government-imposed fees on domestic tickets, with a mandate to recommend immediate reductions to ease costs for both airlines and passengers.
Keyamo noted that the president is expected to hold direct consultations with airline operators in the coming days to discuss broader structural challenges, including access to financing.
Responding on behalf of the industry, Allen Onyema urged the government to go beyond partial relief and grant a full waiver of debts owed by airlines. He also called for a temporary suspension of further payments to aviation agencies until global fuel supply pressures ease.
Onyema further highlighted the high cost of borrowing in Nigeria, noting that local airlines face interest rates of up to 35 percent, compared with about 3 percent globally. He urged the government to strengthen funding for the Bank of Industry to provide more affordable financing options for operators.
Nigeria’s aviation sector has come under increasing strain in recent months, with airlines warning that rising fuel costs—driven in part by global supply disruptions—are threatening the sustainability of operations and pushing ticket prices higher for consumers.
