Chairman of Air Peace, Allen Onyema, has raised fresh concerns over the survival of Nigerian airlines, warning that more operators could shut down within days despite a recent Federal Government intervention aimed at easing financial pressure on carriers. Speaking on News at 10, a programme on TVC News, on Friday, Onyema commended President Bola Ahmed Tinubu for approving a 30 per cent reprieve on outstanding debts owed by airlines to federal aviation agencies, describing it as a welcome development.
However, he stressed that the industry’s most pressing challenge remains the soaring cost of aviation fuel, which he blamed on market conditions rather than government policy. Before the crisis, airlines were buying fuel at about N900 per litre. It has now risen to between N2,700 and N2,900, with some selling as high as N3,300 to N3,500, an increase of over 250 per cent that has placed severe pressure on airline operations. Onyema explained that airlines are now operating largely to offset fuel costs while also contending with high borrowing rates.
The Air Peace chairman warned that the situation could worsen if urgent steps are not taken, revealing that at least two more airlines risk shutting down soon. “We want to meet with Mr President because as I speak to you now, about two more airlines want to go down by Monday. It is very urgent that we meet with Mr President so that he will hear from us,” he said.
From an economic perspective, the aviation sector is a critical enabler of business travel, tourism, and cargo movement in Nigeria. A shutdown of multiple airlines would reduce capacity, increase fares, and disrupt supply chains. While the government’s debt relief is helpful, the underlying challenge of fuel price volatility requires structural solutions, including improved domestic refining capacity and access to foreign exchange for fuel imports.
