Reported by: Ijeoma G | Edited by: Oravbiere Osayomore Promise.
President Bola Ahmed Tinubu has approved a 30 per cent discount on the total debts owed by domestic airline operators to key aviation agencies, in a decisive intervention aimed at easing the mounting financial pressure on an industry buckling under the weight of a severe aviation fuel crisis. The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed the approval on Thursday, April 23, 2026, after a high-level meeting with members of the Airline Operators of Nigeria (AON) convened to address the astronomical rise in the price of Jet A1 fuel. The relief applies to outstanding debts owed to the Federal Airports Authority of Nigeria (FAAN), the Nigerian Civil Aviation Authority (NCAA), and the Nigerian Airspace Management Agency (NAMA), covering charges such as parking fees, navigational charges, and other operational costs.
Keyamo explained that the approval was communicated directly by President Tinubu through his Chief of Staff, Femi Gbajabiamila, while the meeting was ongoing. "So this evening, Mr President just communicated to us through the Chief of Staff, whilst we were at the meeting, that he's granting a 30 per cent discount to all airlines," Keyamo told journalists. The minister clarified that the measure is intended to help airlines manage their outstanding obligations and is part of a broader government strategy to prevent a total shutdown of domestic flight operations. The intervention follows weeks of intense negotiations and a credible threat by the Airline Operators of Nigeria to suspend all flights nationwide from Monday, April 20, 2026, which was later stood down following an appeal from the minister. The discount is seen as critical in persuading airlines to maintain operations while a more sustainable, long-term solution to the fuel crisis is negotiated.
The root cause of the crisis is a staggering 300 per cent surge in the price of Jet A1 fuel, which has jumped from approximately N900 per litre in late February 2026 to over N3,300 per litre. The spike is directly linked to the disruption of global oil shipments through the Strait of Hormuz following the outbreak of the Iran war. Chairman of Air Peace and Vice President of AON, Allen Onyema, highlighted the disproportionate impact on Nigerian carriers, noting that the price increase far outstrips the rise in international crude prices. "Globally, if crude oil rises by 10 per cent, refined products should increase proportionately. But in Nigeria, after the Hormuz blockade, we recorded an increase of about 300 per cent," Onyema told the meeting.
Onyema painted a dire picture of the industry's financial health, warning that carriers are being pushed to the brink. "These airlines are bleeding. We are bleeding. Yes, we threatened to shut down, not because we wanted to shut down, but because we had no money anymore to continue to borrow money from the banks just to pay for fuel and neglecting other things that are supposed to be done in the aviation industry," he stated frankly. He further highlighted the crippling effect of high financing costs, noting that while airlines in other countries borrow at approximately 3 per cent interest, Nigerian carriers face rates between 30 and 35 per cent, a disparity he described as "killing" the industry. While welcoming the government's intervention, Onyema called for a total waiver of all debts owed to aviation agencies and a suspension of further payments until the Strait of Hormuz is reopened.
Despite the debt relief, the immediate threat of a shutdown has not been entirely averted. A follow-up meeting between the government and aviation fuel marketers concluded on Thursday without a definitive resolution. Keyamo disclosed that the negotiations resulted in the establishment of four "focal persons" who will continue dialogue over the next 48 to 72 hours to reach a more sustainable pricing framework. He warned that airlines may not be able to sustain operations beyond seven days if the crisis continues, underscoring the urgency of the situation. He also revealed that the government has initiated a review of multiple taxes, levies, and charges on domestic tickets, with the aim of reducing the overall cost burden on both operators and passengers.
Beyond providing immediate relief, there is a strong expectation that the government will go further. Keyamo indicated that President Tinubu is expected to grant airline operators a one-on-one meeting to discuss broader, more robust issues, including long-term access to capital which remains a critical barrier to industry growth and sustainability. As part of this process, the government will also look at ways to recapitalise the Bank of Industry (BOI) to provide the sector with more affordable financing. The crisis has also prompted a sharp focus on the pricing practices of oil marketers, with the government vowing to hold them accountable for what many see as exploitative price hikes in the local market.
For the Nigerian flying public, the immediate impact of this relief is a temporary reprieve from a potential air travel shutdown. However, if the fuel negotiations fail, the outlook remains uncertain. Keyamo has confirmed that technical teams will continue to engage with oil marketers to find a workable solution. The industry now waits to see if the government's multi-pronged approach can successfully stabilize the sector and prevent a catastrophic disruption to domestic air travel.
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