Tinubu weighs relief measures, tax cuts as operators warn soaring fuel costs could cripple domestic flights…
The Federal Government has unveiled plans to ease the financial burden on domestic airlines by offering debt relief, as the ongoing surge in aviation fuel prices continues to strain the sector.
Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed the move after a high-level meeting with airline operators in Abuja on Wednesday. The meeting was convened to address the sharp rise in the cost of Jet A1 fuel, which industry players say is threatening the sustainability of flight operations across the country.
According to Keyamo, President Bola Tinubu has approved the first phase of intervention, which includes granting airlines significant discounts on debts owed to key aviation agencies such as the Federal Airports Authority of Nigeria, Nigerian Airspace Management Agency, and the Nigerian Civil Aviation Authority.
He explained that while the exact scale of the relief will be determined by the President, the move reflects growing concern within government over the financial pressures facing operators. The President, he added, also commended airlines for maintaining fare levels despite rising operational costs.
Beyond immediate relief, the government is considering broader structural reforms. Keyamo revealed that a presidential committee will soon be established to review and potentially eliminate multiple taxes, levies, and charges embedded in domestic airfares, an issue airlines have long argued inflates ticket prices and limits growth.
The committee is expected to deliver recommendations within a short timeframe, with a focus on reducing costs for both operators and passengers. There are also plans for a direct engagement between the President and airline executives to address deeper issues such as access to affordable financing.
Industry leaders say the crisis has been driven largely by the dramatic spike in Jet A1 prices. Chairman of Air Peace, Allen Onyema, described the situation as unprecedented, noting that fuel costs have risen far beyond global trends.
He argued that while crude oil prices have seen moderate increases globally, aviation fuel prices in Nigeria have surged disproportionately by as much as 300 percent in recent weeks, placing airlines under severe financial stress.
According to Onyema, operators had even considered suspending services nationwide, not as a strategic move but as a last resort to avoid compromising safety standards due to rising costs. He stressed that airlines were unwilling to cut corners on maintenance or operations just to stay afloat.
The situation has also raised concerns about pricing transparency in the fuel supply chain. Onyema questioned the justification for the steep increases, especially given that some suppliers source products from domestic refineries at comparatively lower rates.
He further highlighted the challenge of accessing affordable credit, noting that while airlines in other parts of the world secure financing at single-digit interest rates, Nigerian operators often face rates as high as 30 to 35 percent, conditions he described as unsustainable.
The urgency of the crisis was underscored earlier this month when the Airline Operators of Nigeria warned of a potential nationwide shutdown starting April 20, 2026. The group cited the rapid increase in fuel prices from around N900 per litre to over N3,300 within weeks as a breaking point for the industry.
Although the planned shutdown has been temporarily suspended following government intervention, the underlying issues remain unresolved.
With debt relief on the table and policy reforms under consideration, attention now turns to how quickly these measures can be implemented and whether they will be enough to stabilise an industry facing one of its most challenging periods in recent years.
