The Federal Government is considering measures to ease financial pressure on domestic airlines as the cost of Jet A1 aviation fuel continues to rise sharply.
The Minister of Aviation and Aerospace Development, Festus Keyamo, said the President has asked for a proposal that would grant discounts on debts airlines owe major aviation agencies. These include the Nigerian Airspace Management Agency, the Federal Airports Authority of Nigeria, and the Nigerian Civil Aviation Authority.
He explained that the level of debt relief will be determined after the proposal is submitted, as part of efforts to support operators struggling with operating costs driven mainly by fuel prices.
Keyamo also disclosed that the government plans to review the multiple taxes, levies, and charges included in domestic airfares. A committee is expected to be set up to recommend which of these fees can be removed temporarily to make tickets more affordable for passengers.
The minister added that the President will meet directly with airline operators to discuss wider challenges in the industry, including access to affordable financing.
At the meeting, the Chairman of Air Peace, Allen Onyema, said the crisis was triggered by what he described as an unusual increase in the price of Jet A1 in Nigeria. He noted that while global crude oil prices rose moderately, the local price of aviation fuel increased by more than 300 per cent within a short period.
He said airlines were pushed to the point where income could barely cover fuel expenses, leaving little room for aircraft maintenance and other essential operations. Onyema also questioned the role of fuel marketers, noting that some source products from the Dangote Refinery, where prices are believed to be lower.
He further highlighted the challenge of financing for airlines in Nigeria, saying operators borrow at interest rates between 30 and 35 per cent, far higher than rates obtainable in other countries. He called for stronger support through institutions such as the Bank of Industry.
The Airline Operators of Nigeria had earlier threatened to suspend flights from April 20 due to the surge in fuel prices, which moved from about ₦900 per litre to over ₦3,300 per litre within weeks. The plan was later suspended after discussions with the aviation minister and assurances of government intervention.
The proposed debt relief and review of ticket charges are part of broader efforts to stabilise airline operations and prevent disruption to domestic air travel.
