Tinubu moves to waive airline debts to cushion impact of soaring jet fuel prices

• Bola Tinubu agreed in principle to reduce airline debts

• Airlines threatened shutdown due to rising Jet A1 fuel costs

• Debt relief targets agencies like Federal Airports Authority of Nigeria and others

• Proposal is not final; government also reviewing taxes and charges

Nigeria’s domestic aviation sector narrowly avoided a potential shutdown after President Bola Tinubu agreed in principle to reduce the mounting debts owed by local airlines to key aviation agencies.

The decision followed urgent talks between government officials and airline operators, who had warned they might suspend operations nationwide due to soaring costs, particularly the sharp rise in aviation fuel prices.

At the heart of the crisis is the escalating cost of Jet A1 fuel, which now accounts for a significant portion of airlines’ operating expenses. Carriers say the surge has made it increasingly difficult to sustain flights, raising fears of widespread disruptions across the country.

In response, the federal government is considering a partial write-off or discount on debts owed to agencies such as the Federal Airports Authority of Nigeria, Nigerian Civil Aviation Authority, and Nigeria Airspace Management Agency.

Officials say the relief is intended to ease immediate financial pressure on airlines and prevent a collapse of domestic air travel.

However, the proposal is not yet final. Authorities noted that the exact scale of the debt reduction will be determined after further consultations and a formal submission to the presidency.

Beyond debt relief, the government is also reviewing taxes, levies, and regulatory charges imposed on airlines, with the aim of reducing operational costs across the sector.

Industry stakeholders have long argued that multiple charges and high fuel costs are making Nigeria one of the most expensive environments for airline operations in Africa.

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The latest intervention underscores the growing strain within the aviation industry, as operators grapple with rising fuel prices, foreign exchange challenges, and shrinking profit margins.

While the government’s move offers temporary relief, the coming weeks will be critical in determining whether broader measures can stabilise the industry and prevent future shutdown threats.