…Plans fuel pricing review committee
By Seun Ibiyemi
The Federal Government (FG) has announced plans to grant domestic airlines a discount on outstanding debts owed to aviation agencies as part of urgent measures to stabilise Nigeria’s aviation sector.
Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this after a high-level meeting with the Airline Operators of Nigeria (AON) and other stakeholders in Abuja.
Keyamo said President Bola Ahmed Tinubu has directed him to immediately submit a formal request for consideration, stressing that the matter would not follow the usual Federal Executive Council memo process.
According to him, the proposed relief will apply to debts owed to key aviation agencies including the Nigerian Airspace Management Agency, Federal Airports Authority of Nigeria, and the Nigerian Civil Aviation Authority.
“The President specifically told me not to wait for a council memo. The percentage of discount will be decided by Mr. President because he is very concerned about the situation,” Keyamo said.
He added that Tinubu will also establish a committee to review levies, taxes, and fees imposed on domestic airline tickets, with a view to reducing the cost burden on passengers and operators.
The Minister further revealed that the President is considering a separate engagement with airline operators to discuss broader sector challenges, including access to capital.
The development followed threats by domestic airlines to suspend operations and increase airfares due to rising operational costs, particularly jet fuel (Jet A1) prices.
The Minister of State for Petroleum (Oil), represented by Permanent Secretary Mrs. Patience Onyekunle, said discussions would also be held with oil marketers to address fuel pricing concerns.
Speaking on behalf of operators, Air Peace CEO, Allen Onyema, called for a full waiver of debts owed by airlines and urgent government intervention to address high financing costs.
He argued that Nigerian airlines face interest rates as high as 30–35 per cent compared to single-digit rates in other countries, making operations unsustainable.
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Onyema also urged the Federal Government to strengthen the Bank of Industry as a key funding channel for aviation, warning that current financial pressures are crippling the sector.
Airline operators further questioned the sharp increase in aviation fuel prices, calling for greater transparency in pricing and accountability from oil marketers.
The Federal Government is expected to continue engagements with stakeholders in the coming days as it seeks to avert a potential disruption in domestic flight operations.
