Airlines averted shutdown as FG approves debt relief, aviation tax review

Nigeria’s aviation sector has narrowly avoided a nationwide shutdown after the Federal Government approved a package of debt relief and tax reforms aimed at stabilising domestic airlines facing severe operational pressure.

The intervention followed an emergency stakeholders’ meeting in Abuja on Wednesday, April 22, 2026, where President Bola Ahmed Tinubu approved in principle what officials described as “significant debt relief” for domestic carriers.

The move comes after the Airline Operators of Nigeria (AON) warned that the industry was under extreme financial strain following a sharp rise in aviation fuel costs.

Minister of Aviation and Aerospace Development, Festus Keyamo, said the rescue package rests on two key interventions: relief on debts owed to aviation agencies and a comprehensive review of taxes and charges applied to air tickets.

Under the plan, airlines are expected to benefit from discounted or potentially waived obligations to agencies including the Federal Airports Authority of Nigeria (FAAN), the Nigerian Airspace Management Agency (NAMA), and the Nigerian Civil Aviation Authority (NCAA).

The government has also set up a high-level committee to streamline multiple taxes and levies on domestic flights, a move aimed at reducing soaring ticket prices that have climbed toward ₦250,000 on some routes.

Keyamo said the President had requested detailed documentation to determine the level of relief to be granted, adding that the decision would be finalised after further review.

The intervention follows a steep rise in Jet A1 aviation fuel prices, which surged from about ₦900 per litre in February to as high as ₦3,300 in April, according to operators.

Airlines say fuel now accounts for more than 70% of operating costs, leaving carriers unable to sustain operations without mounting debt.

Air Peace Chairman Allen Onyema, speaking on behalf of AON, said the industry’s warning of a possible shutdown was driven by financial reality rather than negotiation tactics.

“We are not threatening closure; we are bleeding,” Onyema said, adding that airlines were increasingly forced to borrow just to stay operational while struggling to meet maintenance obligations.

A separate point of tension remains the pricing of aviation fuel from domestic suppliers, including the Dangote Refinery. Airlines have accused middlemen of inflating costs despite claims of competitive refinery-gate pricing.

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has summoned oil marketers for further discussions aimed at addressing pricing discrepancies and improving supply transparency.

While the government’s intervention has averted an immediate shutdown, analysts caution that the measures may only provide short-term relief unless deeper structural issues are addressed, including currency instability and high operating costs.

However, the planned tax reforms are being viewed as a more sustainable step toward reducing the cost of air travel and improving accessibility for passengers already burdened by inflation and rising transport costs.

For now, flights across the country are expected to continue as normal, with stakeholders awaiting further details on the extent of the debt relief and the timeline for implementing the new aviation tax framework.