President Bola Ahmed Tinubu has approved a general discount on debts owed by operators to key aviation agencies in a move to cushion the impact of rising Jet A1 fuel costs on Nigerian domestic airlines.
The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this after a high-level meeting with members of the Airline Operators of Nigeria (AON), convened to address the astronomical increase in aviation fuel prices and their impact on the industry.
According to Keyamo, the President has directed that a formal request be submitted for immediate consideration, with a commitment to grant relief to airlines through reduced charges owed to agencies such as the Nigeria Civil Aviation Authority, Federal Airports Authority of Nigeria, and National Airspace Management Agency.
“Mr. President has asked us to submit a formal request, and the first intervention he will consider is a generous discount on debts owed by airlines to aviation agencies,” Keyamo said.
“The percentage of the discount will be determined by him, but he is deeply concerned about the situation and has expressed appreciation to airline operators.”
He further revealed that the President has approved the formation of a committee to review taxes, levies, and charges on domestic air tickets, with a mandate to recommend immediate relief measures for both operators and passengers.
Keyamo noted that discussions with stakeholders have been productive, adding that oil marketers would be engaged in subsequent meetings to address fuel pricing concerns.
Meanwhile, the Minister of State for Petroleum (Oil), Heineken Lokpobiri, represented by the Permanent Secretary of the Ministry, Mrs. Patience Onyekunle, confirmed that a meeting with oil marketers would be held to resolve pricing challenges.
“We will engage the marketers and hear directly from them. Hopefully, by Thursday, some of these issues will be resolved,” she said.
Speaking on behalf of AON, the Chief Executive Officer of Air Peace, Allen Onyema, called for a total waiver of all debts owed by airlines, rather than a partial discount.
He also urged the Federal Government to support the Bank of Industry to enable access to low-interest funding for operators.
Onyema decried the sharp increase in Jet A1 prices, attributing it partly to global tensions, including disruptions linked to the Strait of Hormuz.
“Globally, if crude oil rises by 10 per cent, refined products should increase proportionately. But in Nigeria, prices rose by over 300 per cent. Airlines are bleeding,” he said.
He warned that operators were on the verge of shutting down operations due to unsustainable costs.
“We considered shutting down, not out of choice but necessity. We cannot continue borrowing just to pay for fuel while neglecting critical maintenance and operations,” Onyema added.
The airline operators also called for stricter oversight of oil marketers, questioning the justification for the steep price hike despite local supply dynamics.
Despite the challenges, Onyema acknowledged the government’s efforts, stating that the current administration has shown more support to the aviation sector than previous governments.