The Federal Government has approved a 30 percent reduction in debts owed by domestic airlines to aviation agencies. Minister of Aviation and Aerospace Development Festus Keyamo announced the decision after receiving communication from the Chief of Staff to the President, Femi Gbajabiamila, confirming approval by President Bola Tinubu. The measure means local carriers will now pay significantly less of their outstanding obligations to the Federal Government.
The debt relief follows earlier indications that authorities were considering support measures for airline operators facing rising operational costs. The debts involved include charges owed to agencies such as the Federal Airports Authority of Nigeria and the Nigerian Airspace Management Agency, along with other statutory fees. The total value of the liabilities has not been officially disclosed.
The intervention comes amid mounting pressure in the aviation sector driven by the sharp increase in the cost of Jet A1 fuel. Airline operators had earlier warned of a possible shutdown of services after fuel prices surged by more than 300 percent within weeks. The Airline Operators of Nigeria later suspended the planned action following engagements with the aviation ministry.
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Industry stakeholders say the high cost of fuel has placed severe financial strain on airlines, forcing many to rely on borrowing to sustain operations while maintaining safety and maintenance standards. Calls have also been made for further government support, including broader debt waivers and stronger regulatory oversight of fuel pricing in the sector.
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