Finance, Aviation Ministers Meet as Government Approves Debt Relief for Airlines Amid Jet Fuel Crisis

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has disclosed that he recently held talks with the Minister of Aviation and Aerospace Development, Festus Keyamo, to craft measures aimed at curbing the surging cost of aviation fuel and easing the strain on airline operators.

In a post on X, Oyedele said the two ministers had “constructive discussions on the challenges facing the aviation sector, particularly the recent sharp rise in the cost of aviation fuel and its impact on airlines’ operations and pricing.” He added that the talks also examined opportunities to reposition the industry for growth, with government efforts directed at building “a more sustainable, efficient, and competitive aviation industry that supports economic activity and connectivity.”

The meeting followed an intervention earlier in the week in which authorities approved a 30 per cent discount on outstanding debts owed by domestic carriers to aviation agencies. Keyamo announced the decision after a high-level meeting in Abuja, stating that President Bola Tinubu had given the approval. The gathering brought together oil marketers, airline operators, regulators and other stakeholders alarmed by the spike in Jet A-1 prices and the risk of widespread flight disruptions.

Domestic airlines had warned they might be forced to cut services or raise fares significantly if the situation continued, raising the prospect of reduced connectivity and higher travel costs for Nigerians.

Against this backdrop, Air Peace yesterday announced it has temporarily reduced its Abuja–London service from daily flights to three per week, citing the global aviation fuel supply crunch. The airline said in a statement that the adjustment would remain in force until July 1. “This is due to the current aviation fuel supply constraints affecting flight operations nationwide and around the world,” the statement read. “This measure is necessary to maintain the highest standards of safety and operational reliability during this period.” The carrier promised to restore full frequency from July 1 and apologised for any disruption to passengers’ travel plans.

Beyond the immediate fuel crisis, Oyedele outlined his broader economic priorities after assuming office. He said the government’s immediate focus would be to build on ongoing reforms and ensure they deliver tangible benefits. Key areas included boosting productivity by creating a stable and investor-friendly environment, maintaining fiscal discipline through prudent management of public funds, and improving revenue generation while avoiding excessive tax burdens on vulnerable groups.

He stressed the need for stronger coordination across government institutions and deeper collaboration with the private sector to improve policy design and execution. “Good policy design alone is not enough; success will be defined by execution. We are committed to disciplined implementation, accountability, and measurable results,” Oyedele said.

He expressed readiness to work with public and private stakeholders to convert reform plans into concrete outcomes, with the goal of achieving faster growth and a more stable and inclusive economy.