The Federal Government is weighing plans to grant debt relief to domestic airlines as part of urgent measures to address the escalating Jet A1 fuel crisis threatening Nigeria’s aviation sector.
Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this during a high-level stakeholders’ meeting in Abuja, convened to tackle the sharp rise in aviation fuel costs.
According to the minister, President Bola Tinubu has agreed in principle to consider granting significant discounts on debts owed by airlines to key aviation agencies, including the Federal Airports Authority of Nigeria (FAAN), Nigerian Airspace Management Agency (NAMA), and the Nigerian Civil Aviation Authority (NCAA).
Keyamo explained that the proposed relief is part of broader efforts to cushion the financial strain on operators, many of whom are struggling to remain viable amid rising operational costs. He noted that the President also plans to establish a committee to review multiple taxes, levies, and charges imposed on domestic air travel, with the aim of reducing ticket costs and easing the burden on passengers.
In addition, Tinubu is expected to hold direct consultations with airline operators to address deeper structural challenges, including access to affordable financing and long-term sustainability of the sector.
Speaking at the meeting, Chairman of Air Peace, Allen Onyema, attributed the crisis to the dramatic surge in the price of Jet A1 fuel, which he said has risen disproportionately compared to global crude oil trends.
He revealed that aviation fuel prices jumped by over 300 percent within weeks, pushing costs from about N900 per litre to more than N3,300 per litre. Onyema warned that the spike has placed airlines under severe financial pressure, forcing operators to consider suspending operations to avoid compromising safety standards.
He also questioned the pricing structure of fuel marketers, noting inconsistencies despite local supply sources, including products linked to Dangote Refinery.
Onyema further highlighted the challenge of high borrowing costs in Nigeria, where airlines face interest rates as high as 30–35 percent, compared to about 3 percent in other parts of the world. He argued that this has contributed significantly to the accumulation of debts owed to aviation agencies.
The Airline Operators of Nigeria had earlier threatened a nationwide shutdown beginning April 20, 2026, over the crisis. However, the plan was temporarily suspended following government intervention and ongoing negotiations.
Industry stakeholders say the success of the proposed measures will depend on swift implementation and sustained reforms to stabilise the aviation sector.
