President Bola Tinubu has approved significant interventions in the Nigerian aviation sector to prevent the imminent shutdown of operations by domestic airlines over the high cost of fuel.
Speaking after a high-level emergency stakeholders’ meeting on Wednesday, Minister of Aviation and Aerospace Development, Festus Keyamo, said President Tinubu approved debt relief and a tax review for domestic airlines to cushion the high cost of operations currently incurred by the operators following the hike in price of aviation fuel in recent times.
The domestic operators had threatened to shut down operations over a 300 per cent surge in jet fuel prices triggered by disruptions to oil shipments through the Strait of Hormuz due to the ongoing Iran war.
Keyamo said the president agreed to write off part of domestic airlines’ debts to aviation agencies, including Federal Airports Authority of Nigeria (FAAN), Nigeria Civil Aviation Authority (NCAA), and Nigerian Airspace Management Agency (NAMA).
According to the minister, Tinubu asked the airline operators to submit a formal request to that effect, adding that the discount percentage will be determined by the President.
The minister also stated that a government committee will be formed to review taxes and fees on domestic tickets, with the aim of lowering costs for airlines and passengers.
The president, who thanked the airline operators for not raising their ticket prices despite the surge in aviation fuel, hinted at scheduling a date for a one-on-one meeting with the operators for discussions on access to capital and other issues about their operations that could boost the industry.
Also speaking after the meeting, Chairman/CEO of Air Peace, Allen Onyema, thanked the president for the gesture and the support of his government to airline operators.
Onyema clarified that airlines had threatened to shut down because of the high cost of operations and they couldn’t continue borrowing money from banks to buy fuel, while other things critical to operations remain unattended.
“Yes, we threatened to shut down, not because we wanted to shut down but because we had no money anymore to continue to borrow money from the banks just to pay for fuel and neglecting other things and neglecting other things that are supposed to be done in the aviation industry.
Reacting to the president’s offer, Onyema said the airlines are asking for a total waiver of all the debts owed to aviation agencies during this period instead of a discount. He further called for suspension of further payments until the Strait of Hormuz is reopened, when oil prices would have eased.
“We are asking for total waiver of all debts we owe and at the same time a suspension of further payments until the Strait of Hormuz is reopened,” the Air Peace CEO stated.
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On the cost of aviation fuel, Onyema called for a review to ascertain how marketers raised prices by about 300 per cent, adding that even Dangote is surprised about such an increment, as what the refinery is selling remains the cheapest and some of them lifted product from there.
Fuel marketers and government officials will meet on Thursday to resolve pricing disputes.
Airline operators had lamented the hike in price of aviation fuel by 300 percent in just two months, jumping from ₦900 in February to over ₦3,300 per liter in April.
Global supply chains for Jet A1 fuel have been severely disrupted by geopolitical instability in the Middle East.
Major Energies Marketers Association of Nigeria (MEMAN) had said that apart from the supply chain disruption caused by the closure of the Strait of Hormuz, there was also a challenge of logistics costs and currency volatility, which adds to the final cost of aviation fuel when delivered to airlines.
Airline Operators of Nigeria (AON) had planned to suspend all flight operations starting April 20, 2026. The strike was suspended after Keyamo intervened and invited the operators to a stakeholders’ meeting to address the issues. The action has been put on hold following the President’s intervention and the promise of immediate fiscal relief.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in Mass Communication. He can be reached via @VICTOREZEJA on X