FG approves 30% debt relief for domestic airlines amid fuel cost crisis

President Bola Ahmed Tinubu has approved a 30 per cent reduction in debts owed by domestic airlines to aviation agencies, in a move aimed at easing financial pressure on operators grappling with rising costs.

The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this on Thursday, stating that the approval followed communication from the President through his Chief of Staff, Femi Gbajabiamila.

According to Keyamo, the decision means that local carriers will now pay significantly less of their outstanding obligations to government agencies. “This evening, Mr President has definitely approved a 30 per cent discount,” the minister said.

The development comes shortly after the Federal Government indicated it was considering measures to support airlines facing mounting operational challenges, particularly the surge in aviation fuel prices.

Industry operators had earlier raised concerns over the sharp increase in the cost of Jet A1 fuel, which reportedly rose from about N900 per litre in late February to over N3,300 per litre, placing a heavy burden on airline operations.

The debts owed by the airlines include charges payable to agencies such as the Federal Airports Authority of Nigeria for parking, as well as navigational fees to the Nigerian Airspace Management Agency and other statutory payments.

The Airline Operators of Nigeria had previously threatened to suspend flight operations in protest against the escalating fuel costs but later shelved the plan following intervention by the government.

Stakeholders in the aviation sector have continued to warn that the financial strain on airlines could impact safety, maintenance, and overall service delivery if urgent support measures are not sustained.