President Bola Ahmed Tinubu has approved a series of relief measures for Nigeria’s struggling aviation sector, including plans to waive debts owed by domestic airlines and reduce multiple taxes and levies on air tickets, as the industry grapples with soaring Jet A1 fuel costs.
The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed the development after a high-level meeting with airline operators and oil marketers in Abuja convened to address the sharp rise in aviation fuel prices.
Keyamo said the President had directed his ministry to submit proposals aimed at easing the financial burden on airlines, starting with debt relief owed to key aviation agencies. “I had the privilege of meeting Mr. President to brief him about the meeting, and Mr. President mandated us to quickly bring a request to him. The first request that he will consider and grant is a generous discount on the debts the airlines are owing the aviation agencies, NAMA, FAAN, NCAA, and so on and so forth,” he said.
He added that the final decision on the scale of the debt relief would be determined by the President, noting that Tinubu was deeply concerned about the challenges facing the sector. According to him, the President also conveyed appreciation to airline operators for sustaining operations under difficult conditions.
Beyond debt relief, the government is also moving to address the longstanding issue of multiple taxation in the aviation industry. Keyamo revealed that the President has approved plans to establish a committee to review and streamline levies, taxes, and fees imposed on domestic tickets.
“The second request Mr. President has asked that we should bring for him to consider fully and grant is that he wants to set up a committee to address the issue of levies, taxes, and fees on domestic tickets once and for all,” Keyamo said. He added that the committee would be given a strict timeline to recommend which charges could be removed to provide immediate relief for both operators and passengers.
The minister also disclosed that the President is planning a direct engagement with airline operators to explore broader reforms, including access to affordable financing for the sector.
Responding on behalf of operators, Chairman of Air Peace, Allen Onyema, urged the government to go further by granting a full waiver of airline debts rather than partial relief. He also called for a temporary suspension of payments to aviation agencies until global supply disruptions ease, particularly those linked to tensions affecting the Strait of Hormuz.
Onyema commended the President’s responsiveness, citing the swift removal of the 4 per cent Free on Board charge for airlines, but stressed that deeper structural reforms were needed to sustain the industry. He highlighted the high cost of financing in Nigeria as a major constraint, noting that while airlines globally access funding at about three per cent interest, Nigerian operators face rates as high as 30 to 35 per cent.
“In Nigeria, we acquire at 30 to 35 per cent. This is killing. That’s why airlines owe FAAN, owe NCAA, owe everybody, because we are the sacrificial lambs. It’s not a lucrative business,” Onyema said, urging the government to strengthen funding for the Bank of Industry to enable access to single-digit interest loans.
