The Centre for the Promotion of Private Enterprise (CPPE) has welcomed President Bola Ahmed Tinubu’s approval of a 30 per cent discount on airlines’ outstanding debts but warned that the move falls short of addressing the deeper crisis in Nigeria’s aviation sector.
In a statement issued on April 26, 2026, CPPE Chief Executive Officer, Dr Muda Yusuf, said the intervention offers only temporary relief to operators struggling with rising and unsustainable costs.
“The debt discount provides timely relief to operators grappling with escalating and unsustainable operating costs,” Yusuf said.
He also praised the Minister of Aviation and Aerospace Development, Festus Keyamo, for his engagement with industry stakeholders, describing it as “impactful and commendable.”
High Costs Threaten Airline Survival
Despite the relief, CPPE stressed that the sector’s core problem remains the high cost of doing business, driven largely by multiple taxes, fees and levies imposed by regulatory agencies.
According to Yusuf, charges from the Nigerian Civil Aviation Authority (NCAA), Federal Airports Authority of Nigeria (FAAN), and Nigerian Airspace Management Agency (NAMA) account for as much as 35 per cent of airline revenues.
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He noted that such a cost burden is “clearly incompatible with the thin margins typical of the aviation business,” warning that it continues to weaken operators and contribute to the high failure rate among Nigerian airlines.
The CPPE added that the aviation sector plays a critical role in economic connectivity, trade, investment flows and national integration, especially as insecurity has made road travel increasingly unsafe.
Call for Urgent Structural Reforms
Yusuf urged the Federal Government to go beyond debt relief and implement broad reforms to reduce the cost pressures facing airlines.
He described the current regime of charges—including ticket and cargo sales charges, passenger service fees, landing and parking fees, inspection charges, and import duties on aircraft and spare parts, as “overly burdensome, fragmented and detrimental.”
“A streamlined and moderated cost structure is imperative,” he said, adding that reducing both the number and size of these charges would improve the viability and competitiveness of domestic airlines.
He warned that excessive financial pressure on operators could also have safety implications, stressing that reforms are not only an economic necessity but also critical for maintaining operational standards.
“Government support for the aviation sector must therefore go beyond debt relief,” Yusuf said. “What is needed is a comprehensive reform of the aviation cost environment to ensure sustainability.”
The CPPE maintained that without urgent action to address structural cost challenges, the sector will continue to face instability, rising ticket prices and weakened service delivery.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X