Federal Government Offers Debt Relief Discounts to Domestic Airlines Owing Aviation Agencies

The Federal Government has announced plans to grant domestic airlines discounts on outstanding debts owed to aviation agencies, a move aimed at easing financial pressure on carriers facing escalating operational costs.

Minister of Aviation and Aerospace Development Festus Keyamo disclosed the decision during a meeting in Abuja with the Minister of State for Petroleum Resources (Oil), airline operators, and other aviation stakeholders. The meeting was convened in response to an earlier warning by the Airline Operators of Nigeria that rising Jet A1 fuel prices could force flight suspensions and fare increases.

Keyamo stated that the exact percentage of the debt relief discount will be determined by President Bola Tinubu, who has directed affected airlines to submit formal requests urgently. “A generous discount on debts owed to agencies such as the Nigerian Airspace Management Agency, Federal Airports Authority of Nigeria, and the Nigerian Civil Aviation Authority is under consideration,” the minister said.

The President has also approved the establishment of a committee to review multiple taxes, levies, and charges applied to domestic flight tickets. Keyamo said the committee’s mandate is to reduce the cost burden on both operators and passengers.

The federal intervention followed the Airline Operators’ threat to disrupt services. Keyamo noted that the government moved swiftly to avert potential travel chaos.

Speaking on fuel pricing, Minister of State for Petroleum Resources (Oil) Heineken Lokpobiri, represented by Permanent Secretary Patience Oyekunle, said a meeting with oil marketers has been scheduled for Thursday to address concerns over Jet A1 costs.

On behalf of AON, Air Peace Chief Executive Officer Allen Onyema called for a full waiver of airline debts and urged the government to strengthen the Bank of Industry to enable carriers to access loans at lower interest rates. He described the reported 300 percent increase in aviation fuel prices as abnormal and appealed to oil marketers for restraint.