CHIDI UGWU, ABUJA
Airline operators in Nigeria have demanded a total waiver of debts owed to aviation agencies, citing an unsustainable 300 per cent increase in aviation fuel prices, during a crucial high-level meeting with the Minister of Aviation and Aerospace Development, government officials, and industry stakeholders.
The demand was made under the umbrella of the Airline Operators of Nigeria (AON) at an emergency meeting convened by the Minister, Mr. Festus Keyamo, to avert a looming shutdown of domestic flight operations.
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The crisis, triggered by the sharp rise in the price of Jet A1 fuel, had pushed airlines to the brink, with operators warning they could no longer sustain operations under current conditions. The situation nearly resulted in a planned nationwide shutdown before government intervention.
Speaking at the meeting, AON Vice President and Chairman of Air Peace, Dr. Allen Onyema, said airlines were “bleeding” financially due to the disproportionate hike in fuel costs, which he said had risen by about 300 per cent compared to global crude oil price movements.
“We are asking for a total waiver of all debts owed to aviation agencies. The airlines are under severe strain and cannot continue to borrow just to pay for fuel while neglecting critical obligations like maintenance,” Onyema said.
He explained that the threat to suspend operations was not a bargaining tactic but a reflection of the dire financial realities facing operators.
According to him, airlines had reached a breaking point where continued operations would compromise safety and sustainability.
The Minister, Mr. Keyamo, confirmed that the Federal Government had stepped in swiftly to prevent disruption to air travel, following the operators’ warning.
He disclosed that he had briefed President Bola Ahmed Tinubu ahead of the meeting and secured presidential backing for immediate intervention.
Keyamo said the President had directed that formal requests from the airlines be submitted urgently, particularly regarding debt relief.
While noting that a decision on the extent of concessions would rest with the President, the Minister revealed that a “generous discount” on debts owed to agencies such as the Nigerian Airspace Management Agency (NAMA), Federal Airports Authority of Nigeria (FAAN), and the Nigerian Civil Aviation Authority (NCAA) was under consideration.
However, the airlines insisted that anything short of a full waiver would be insufficient to stabilise the sector.
In addition, the Minister announced that the President had approved the setting up of a committee to review multiple taxes, levies, and charges imposed on domestic tickets, with a view to reducing the cost burden on both operators and passengers.
Onyema also called for urgent reforms in access to financing, noting that high interest rates—often above 30 per cent in Nigeria—were crippling airline operations, compared to single-digit rates obtainable globally.
Meanwhile, the Permanent Secretary, Ministry of Petroleum Resources (Oil), Mrs. Patience Oyekunle, said engagements with fuel marketers would continue, with a follow-up meeting scheduled to address pricing concerns and seek clarity on the steep increase.
The meeting ended with cautious optimism, as stakeholders agreed to further negotiations aimed at preventing a collapse of the domestic aviation sector.
