President Bola Tinubu has approved plans to waive debts owed by domestic airlines and reduce multiple charges on flight tickets, as part of urgent measures to ease pressure from the rising cost of Jet A1 fuel.
Keyamo reveals presidency’s intervention
Minister of Aviation, Festus Keyamo, disclosed the development on Wednesday after a meeting with airline operators and oil marketers in Abuja.
“I had the privilege of meeting Mr. President… The first request that he will consider and grant is a generous discount on the debts the airlines are owing aviation agencies,” Keyamo said.
He noted that the decision affects debts owed to agencies such as NAMA, FAAN, and NCAA, with the final percentage of relief to be determined by the president.
Fresh plan to cut ticket charges
Keyamo also revealed that Tinubu has directed the formation of a committee to review and remove multiple levies, taxes, and fees on domestic air tickets.
“He wants to set up a committee to address the issue of levies, taxes, and fees on domestic tickets once and for all,” the minister said.
The committee is expected to submit recommendations within a short timeframe, with the aim of reducing costs for air travellers.
Airlines push for full waiver
Reacting to the proposal, Air Peace Chairman Allen Onyema urged the president to go further by approving a total waiver of all airline debts.
He also called for a temporary suspension of payments by operators until global fuel supply stabilises.
Onyema commended Tinubu’s responsiveness, citing the recent removal of the 4 per cent Free on Board charge as a positive step.
Funding concerns raised
The airline boss further highlighted the high cost of financing in Nigeria, noting that operators access loans at rates between 30 and 35 per cent, compared to about 3 per cent globally.
“In Nigeria, we acquire at 30 to 35 per cent. This is killing,” Onyema said, urging the government to strengthen the Bank of Industry to support airlines with lower-interest funding.
Relief expected for aviation sector
The proposed measures are expected to provide temporary relief for airline operators and passengers amid the ongoing fuel crisis affecting flight operations across the country.
The development is already gaining attention in latest Nigerian news and breaking news Nigeria today as stakeholders await implementation details.