Nigeria Moves to Prevent Airline Shutdown with Debt Relief and Tax Reforms
Bola Tinubu moves to stabilise the aviation sector as rising fuel costs threaten airline operations.
- Nigeria considers partial airline debt write-off
- Government to review taxes and ticket levies
- Fuel price surge threatens airline operations
Nigeria’s government is taking urgent steps to prevent a potential shutdown of domestic airlines, with President Bola Tinubu agreeing in principle to write off part of the debts owed by local carriers to aviation agencies.
The move follows warnings from airlines that they may suspend operations due to rising operational costs, particularly the surge in aviation fuel prices.
Aviation Minister Festus Keyamo said the President has requested a formal proposal outlining the extent of the debt relief, with the final percentage to be determined after review.
In addition to the proposed debt write-off, the government plans to establish a committee to assess taxes, levies, and fees applied to domestic air travel. The committee is expected to recommend possible reductions aimed at easing financial pressure on both airlines and passengers.
Officials are also engaging fuel marketers in discussions to address pricing concerns. Talks are expected to continue, with stakeholders seeking a swift resolution to stabilise fuel costs.
According to Patience Oyekunle, the government is working closely with industry players to resolve the dispute and prevent disruptions to air travel.
The situation reflects wider global challenges facing the aviation sector, as rising jet fuel prices—linked in part to the ongoing Iran conflict—continue to strain airline operations, leading to higher fares and adjustments to growth plans worldwide.
