Nigerian Airlines Push for Debt Relief as Fuel Crisis Threatens Operations
Oru Leonard
Airline operators in Nigeria have renewed calls for sweeping debt relief from aviation authorities, warning that a steep surge in aviation fuel prices is pushing the industry toward a potential shutdown.
The appeal was made during an emergency stakeholders’ meeting convened by the Minister of Aviation and Aerospace Development, Festus Keyamo, to address growing concerns over the sustainability of domestic flight operations.
Operators, under the umbrella of the Airline Operators of Nigeria (AON), said the cost of Jet A1 fuel has risen by about 300 percent, placing unbearable financial pressure on airlines. They warned that without urgent intervention, many carriers may be forced to halt services.
Speaking at the meeting, AON Vice President and Chairman of Air Peace, Dr. Allen Onyema, stressed that airlines are struggling to stay afloat amid escalating operational costs. He noted that carriers are increasingly borrowing just to procure fuel, leaving little room for essential obligations such as aircraft maintenance.
According to Onyema, the request for a complete waiver of debts owed to aviation agencies is not a negotiating tactic but a necessary step to keep the sector alive. He cautioned that continued operations under current conditions could compromise both safety and long-term viability.
In response, the Minister confirmed that the Federal Government had intervened to prevent immediate disruption to air travel.
He disclosed that President Bola Ahmed Tinubu had been briefed and had directed airlines to submit formal proposals, particularly regarding debt relief.
While a final decision is yet to be announced, the Minister indicated that the government is considering significant concessions, including possible reductions in debts owed to key aviation agencies.
He also revealed that a committee has been approved to review multiple taxes, levies, and charges imposed on domestic air travel, with the aim of easing the financial burden on both airlines and passengers.
Industry stakeholders further highlighted the challenge of high interest rates in Nigeria, often exceeding 30 percent, compared to much lower rates in other countries. They called for reforms to improve access to affordable financing within the aviation sector.
Meanwhile, officials from the Ministry of Petroleum Resources said discussions with fuel marketers would continue, with plans for further engagements to address pricing concerns and understand the sharp rise in aviation fuel costs.
The meeting ended with cautious optimism, as all parties agreed to coperations.
