Festus Keyamo, Minister of Aviation and Aerospace Development, says President Bola Tinubu has granted a 30% discount on domestic airlines’ debts to aviation agencies.
This means that domestic airlines will pay 30% less to the federal government.
Keyamo confirmed the debt reduction on Thursday, following a communication from Femi Gbajabiamila, Tinubu’s chief of staff.
“This evening, Mr. president has definitely approved a 30 percent discount,” the minister told journalists on Thursday night.
The gesture comes around 24 hours after the minister announced that the federal government was exploring debt reduction for local carriers as part of measures to mitigate the impact of rising aviation fuel costs.
It is unclear how much the airline operators owe the various aviation organizations, but Keyamo stated that the debts include parking charges for the Federal Airports Authority of Nigeria (FAAN), navigational charges to the Nigerian Airspace Management Agency (NAMA), and “other fees owed by the airlines.”
On April 14, the Airline Operators of Nigeria (AON) threatened to halt operations beginning April 20 because of the growing cost of Jet A1.
The operators stated that the price of aviation fuel has risen from N900 per litre on February 28 to N3,300 per litre, signifying a more than 300 percent increase.
Following the minister’s petitions, AON issued a temporary stay of the planned suspension.
Allen Onyema, chairman of Air Peace, decried the aviation situation, “driven largely by the steep increase in Jet A1 prices,” and advocated for the prosecution of the product’s marketers.
“The truth is that the marketers must be brought to book to explain how they got about the 300 percent increase,” he had said.
“Even Dangote is surprised, because what he is selling to us still remains the cheapest, and some of them lift from there. So why the astronomical rise?”
Onyema stated that airlines are experiencing extreme financial strain, with operators having to rely on borrowing to cover fuel purchases while struggling to maintain other key areas of operations, such as safety and maintenance.
The airline owner also urged Tinubu to consider a “total waiver of all the debts we owe” and “a suspension of further payment until Hormuz is open.”
