KEY POINTS
- President Tinubu approved 30% debt relief for domestic airlines to ease financial pressure
- Government has ordered urgent talks to agree on fair jet fuel pricing within 72 hours
- Rising jet fuel costs have driven fare increases and disrupted airline operations globally and in Nigeria
Nigeria’s President, Bola Tinubu, has approved a 30 percent relief on debts owed by domestic airlines to aviation agencies in a move aimed at easing financial pressure on the country’s struggling aviation sector due to fuel issues.
The decision was disclosed by Aviation Minister Festus Keyamo on Thursday, alongside a directive for urgent negotiations involving key stakeholders in the aviation fuel supply chain.
According to the minister, the president also ordered immediate discussions between fuel marketers, airline operators, and regulatory authorities to agree on a fair and sustainable price for jet fuel within 48 to 72 hours. The outcome of the talks is expected to be made public once consensus is reached.
Domestic airlines have repeatedly warned that they may be forced to shut down or significantly increase ticket prices due to the sharp rise in costs, which have reportedly surged by nearly 300 percent.
The fuel price surge has placed severe strain on airline operations, increasing operational costs and disrupting financial planning across the industry.
Government intervention to stabilise sector
As part of the intervention, the federal government is seeking to balance industry sustainability with consumer protection by ensuring that fuel pricing reflects market realities while remaining affordable enough to prevent further disruption in air travel.
The planned meeting will bring together representatives of the federal government, airline operators, fuel marketers, and regulatory agencies to negotiate what authorities described as a fair and reasonable pricing framework.
The development comes amid broader global challenges affecting the aviation industry, where rising jet fuel prices, driven in part by geopolitical tensions including the Iran conflict have forced airlines worldwide to increase fares, scale back expansion plans, and revise financial forecasts.
Nigeria’s intervention is therefore seen as part of efforts to cushion domestic operators from global shocks while stabilising the aviation sector.
