Experts Fault FG’s 30% Airline Debt Relief, Warn of Policy Gaps in Aviation Sector

ABUJA — Aviation stakeholders have criticised the Federal Government’s decision to grant a 30 per cent discount on outstanding statutory charges owed by domestic airlines to aviation agencies, describing the move as inappropriate and lacking transparency.

The policy, approved by President Bola Tinubu about two weeks ago, was designed to ease financial pressure on operators in the aviation sector, particularly amid rising costs triggered by the ongoing Jet-A1 fuel crisis.

The relief covers accumulated debts owed to key agencies including the Federal Airports Authority of Nigeria (FAAN), the Nigerian Airspace Management Agency (NAMA), and other regulatory bodies.
However, industry experts say the decision effectively amounts to waiving public funds without addressing structural inefficiencies in the sector.

A former Nigeria Airways pilot, Capt. Mohammed Badamasi, questioned the rationale behind the intervention, arguing that it ignores broader liabilities within the aviation value chain.

“I agree with the Association of Nigeria Aviation Professionals that it’s wrong to waive 30 per cent of public money to airlines,” he said.

He also raised concerns about alleged non-remittance of statutory charges, warning that accountability gaps persist across the system.

“The airlines demand total debt cancellation. Where in the world is this done? Were the passengers not made to pay for this tax?” he asked, describing the situation as a failure of corporate responsibility by both airlines and regulators.

Badamasi further queried the absence of provisions for debts owed to other service providers.

“What about the ground handling companies and oil marketing companies? Are they also expecting waivers?” he said, warning that repeated bailouts without reforms could worsen the industry’s outlook.

Similarly, the Chief Executive Officer of Centurion Security Limited, Capt. John Ojikutu (retd), questioned the scope and value of the relief.

“30 per cent of what debt? What is the value? Which year? Is it for one year or two years?” he asked, estimating that total indebtedness in the sector could run into hundreds of billions of naira.
He recalled that similar debt relief measures in the past failed to produce lasting solutions.

“They have given airlines this type of relief before. It was about N300 billion, and nothing came out of it. The airlines that were given collapsed before new ones came in,” he said.

Ojikutu also blamed regulatory weaknesses for recurring challenges in the sector, arguing that excessive interference in aviation oversight has undermined enforcement.

“If the regulatory body is allowed to function under the law without interference from the Ministry of Aviation, we will not be where we are today,” he added.

The debate highlights growing tensions within Nigeria’s aviation sector over debt recovery, regulatory compliance, and the sustainability of repeated government interventions without structural reform.

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