President Bola Tinubu has agreed in principle to write off part of domestic airlines’ debts to aviation agencies following successful talks with the Airline Operators of Nigeria (AON).
The group demanded a total waiver of debts owed to aviation agencies to cushion the effect of a 300 per cent increase in aviation fuel prices during a crucial high-level meeting with the Minister of Aviation and Aerospace Development, Mr Festus Keyamo and other critical stakeholders in Abuja on Wednesday.
Recall that the airlines had called off their impending strike due to commence on Monday over the rising cost of operations, particularly for fuel, triggered by the current Middle East crisis.
Mr Keyamo said President Tinubu asked for a formal request to be submitted immediately, with the percentage of the write‑off to be determined by him.
Also, the federal government will set up a committee to review taxes, levies and fees charged on domestic air tickets, to recommend cuts to ease pressure on airlines and passengers.
Speaking at the meeting, the chairman of Air Peace, Mr Allen Onyema, who spoke on behalf of airline operators, 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.
According to him, “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.”
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.
Mr 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.
On his part, Minister Keyamo confirmed that the federal government had stepped in swiftly to prevent disruption to air travel, following the operators’ warning.
He said that he had briefed President Bola Tinubu ahead of the meeting and secured presidential backing for immediate intervention.
Mr Keyamo said the president had directed that the formal requests from the airlines be submitted urgently, particularly regarding debt relief.
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.