…AON Pushes for Full Waiver Amid Soaring Jet Fuel Costs
By Davidson Igwe
ABUJA — President Bola Ahmed Tinubu has stepped into the deepening crisis in Nigeria’s aviation sector, signalling plans to grant debt relief to airline operators grappling with the rising cost of Jet A1 fuel.
The intervention follows an emergency meeting convened by the Minister of Aviation and Aerospace Development, Festus Keyamo, with airline operators and regulatory agencies.
The Airline Operators of Nigeria had earlier warned that domestic carriers might suspend operations over what it described as the “astronomical and unsustainable” increase
in aviation fuel prices.
Addressing journalists after the meeting on Wednesday, Keyamo disclosed that he had briefed the President, who directed that a formal request be submitted immediately for intervention.
He said the President has indicated willingness to grant airlines discounts on debts owed to key aviation agencies, including the Nigerian Airspace Management Agency, Federal Airports Authority of Nigeria, and the Nigerian Civil Aviation Authority.
“He asked that the request be brought to him promptly and assured that he will personally determine the level of discount,” Keyamo said.
The minister added that Tinubu expressed concern over the situation and commended airline operators for resisting fare increases despite mounting operational costs.
As part of broader measures, the President also directed the establishment of a committee to review multiple taxes, levies, and charges on domestic air travel, with a mandate to recommend possible reductions.
Keyamo further revealed that Tinubu is expected to meet directly with airline operators in the coming days to explore long-term solutions, including access to affordable financing.
Earlier, Permanent Secretary at the Ministry of Petroleum Resources, Patience Oyekunle, said fuel marketers would be invited to a follow-up meeting to address pricing concerns.
“We expect that by tomorrow afternoon, some of these issues will have been resolved,” she said.
Despite the government’s intervention, operators insist the crisis remains critical. Speaking on behalf of the airlines, Allen Onyema, Chairman of Air Peace, said Jet A1 prices have surged by about 300 per cent, far above global trends.
“The airlines are bleeding. Our threat to suspend operations was not a bluff—we can no longer sustain current costs,” he said.
He warned that financial pressure could impact essential maintenance operations, stressing that safety must not be compromised.
While welcoming the proposed debt relief, the operators are demanding a full waiver of outstanding debts and a temporary halt to further payments until fuel prices stabilise.
They also questioned the sharp rise in fuel prices despite local supply sources, including output from the Dangote Refinery.
Additionally, the airlines highlighted the challenge of high borrowing costs, noting that while global carriers access credit at around three per cent interest, Nigerian airlines face rates as high as 30 to 35 per cent.
They urged the Federal Government to strengthen the Bank of Industry to provide more affordable financing for the aviation sector.
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