Tinubu Grants 30% Debt Relief to Airlines, Orders Urgent Fuel Price Talks
Bola Tinubu has approved a 30% debt relief for domestic airlines and ordered urgent talks to address soaring aviation fuel prices, in a move aimed at preventing a potential shutdown of the country’s aviation sector.
The decision, announced Thursday by Aviation Minister Festus Keyamo, provides immediate financial relief to airlines struggling under heavy debt burdens owed to government aviation agencies. It also mandates negotiations between fuel marketers, airline operators, and regulators to agree on a fair price for Jet A1 fuel within 72 hours.
The intervention follows warnings from airline operators that rising fuel costs—exacerbated by global oil market tensions—could force them to suspend operations or significantly increase fares. Fuel accounts for a major share of airline operating costs, and prices in Nigeria have surged far beyond global averages in recent months.
Government officials say the debt relief is part of broader efforts to stabilize the aviation industry, which has faced mounting financial strain due to high borrowing costs, foreign exchange pressures, and volatile energy prices. Discussions are also underway to review taxes and charges affecting airlines, with the aim of easing operational costs and protecting passengers from fare hikes.
Industry stakeholders have welcomed the move but warn that more comprehensive reforms may be required to ensure long-term sustainability. Airline operators had earlier threatened a nationwide shutdown before agreeing to temporary talks with the government.
The outcome of the ongoing fuel pricing negotiations is expected to determine whether the sector stabilizes or faces further disruption in the coming weeks.
