The Federal Government has stepped in to prevent a looming shutdown of domestic flight operations, offering debt relief to airline operators grappling with an unprecedented spike in Jet A1 fuel prices. The intervention follows weeks of mounting pressure on carriers, who saw fuel costs skyrocket by over 300 percent within a matter of weeks .
Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed after a high-level emergency meeting in Abuja on Wednesday that President Bola Tinubu had approved a “generous discount” on debts owed by airlines to key aviation agencies, including the Nigerian Airspace Management Agency (NAMA), the Federal Airports Authority of Nigeria (FAAN), and the Nigeria Civil Aviation Authority (NCAA) .
“Mr. President mandated us to quickly bring a request to him. The first request he will consider and grant is a generous discount on the debts the airlines are owing the aviation agencies,” Keyamo told reporters following the closed-door session. “Mr. President specifically told me not to wait for a council memo. I should bring the letter to him as early as possible tomorrow. The percentage of discounts and all that, Mr. President will decide. He is so concerned about what is happening” .
The minister further revealed that the President intends to establish a committee to review multiple taxes, levies, and fees imposed on domestic air travel, with a mandate to report back within a specific timeframe .
Airlines: “We Are Bleeding”
Speaking on behalf of the Airline Operators of Nigeria (AON), Air Peace Chairman and CEO Allen Onyema painted a grim picture of the industry’s financial health, revealing that Jet A1 prices surged from approximately N900 per litre in late February to over N3,300 per litre by mid-April .
“We are bleeding,” Onyema stated bluntly. “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 neglect other things that are supposed to be done in the aviation industry” .
The Air Peace boss raised serious safety concerns, noting that continued operations under severe financial strain could compromise critical maintenance activities. “You know very well that your regime pushes utmost safety, and we don’t want to shorten safety. So we decided that instead of not having money to do other things like maintenance, but only buy the fuel that we needed, to shut down” .
Marketers Under Scrutiny
Onyema also questioned what he described as a disproportionate price hike, noting that while global crude oil prices had risen by approximately 30 percent, domestic jet fuel prices had increased ten times that amount .
“The truth is that the marketers must be brought to book to explain how they got about the 300 percent increase, when even Dangote is surprised because what he is selling to us, his product, remains the cheapest. And some of them lifted from there. So why the astronomical rise?” he queried .
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, represented by Permanent Secretary Mrs. Patience Oyekunle, confirmed that oil marketers would be summoned for further discussions on Thursday to provide explanations and seek resolutions .
Total Waiver Sought
While welcoming the President’s proposed debt relief, Onyema appealed for a more comprehensive intervention. “Instead of the President deciding which discount to give us, we are asking for a total waiver of all the debts we owe, and at the same time a suspension of further payment until Hormuz is open” .
The airline operators also highlighted the broader challenge of accessing affordable financing, noting that while global carriers borrow at interest rates of around three percent, Nigerian airlines face rates of 30 to 35 percent from local financial institutions .
Presidential Appreciation
Keyamo conveyed President Tinubu’s appreciation to the airline operators for their restraint. “He asked me in particular to express his deep appreciation to the airline operators. He knows the conditions under which we operate. And he said I should thank you for not raising your prices despite all that has happened” .
The AON had initially threatened to suspend all flights nationwide from April 20, but agreed to temporarily pause the action following the government’s intervention and the scheduling of Wednesday’s meeting . A follow-up meeting with oil marketers was scheduled for Thursday to continue deliberations on resolving the crisis .
