Nigeria’s federal government is considering granting debt discounts to domestic airlines as part of emergency measures to cushion the impact of a sharp rise in aviation fuel costs that has pushed the industry toward crisis.
Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this after a high-level meeting in Abuja, noting that President Bola Tinubu has requested a formal proposal for immediate review. The planned intervention includes potential reductions in debts owed by airlines to key aviation agencies such as the Nigerian Airspace Management Agency, Federal Airports Authority of Nigeria, and the Nigerian Civil Aviation Authority. The president will determine the exact scale of the discount.
In addition, the government is set to establish a committee to review multiple taxes and levies imposed on domestic air travel, to lower ticket costs. Plans are also underway for direct engagement between the president and airline operators to address broader financing challenges within the sector. Airlines, however, say the proposed relief measures may not be sufficient. Industry operators are calling for a full waiver of outstanding debts and a temporary suspension of further payments until global supply conditions stabilise, particularly disruptions linked to the Strait of Hormuz.
Operators have also raised concerns about the high cost of financing in Nigeria, where borrowing rates for aircraft acquisition range from 30 to 35 percent, significantly higher than in other markets. They argue that these conditions are straining their ability to maintain operations, meet safety standards, and sustain fuel purchases.
At the centre of the crisis is a steep increase in the price of Jet A1 fuel, which has surged by more than 300 percent, from about N900 per litre in February to roughly N3,300 per litre. The spike has intensified financial pressure on airlines and sparked concerns over fare increases and operational sustainability.
Industry stakeholders have questioned the scale of the price increase, noting that it appears disproportionate to global crude oil trends. They are urging regulators to scrutinise pricing practices within the fuel supply chain.
The rising costs had earlier prompted the Airline Operators of Nigeria to threaten a shutdown of operations from April 20. However, the group later suspended the plan following government intervention and ongoing discussions.
The government’s proposed measures are seen as a short-term response to stabilise the sector, as authorities work to prevent disruptions to air travel and broader economic activity.
