Nigeria’s President Tinubu moves to ease airline crisis with 30% debt cut, fuel price talks

Nigeria’s President Bola Tinubu approved relief measures to ease pressure on domestic airlines, including a 30 percent cut in debts owed to aviation agencies and government-backed efforts to stabilize jet fuel prices as rising operating costs continue to strain the sector.

The decision, announced by Aviation Minister Festus Keyamo, comes as airlines across the country face rising expenses that operators say are threatening service stability. Officials said the measures are immediate steps to ease pressure on carriers already dealing with tight margins, weaker cash flow, and mounting operational expenses.

Government directs jet fuel pricing talks

At the center of the concern is aviation fuel. Jet fuel prices have increased by nearly 300 percent, according to industry figures cited by officials, sharply raising the cost of flight operations. Airline executives say fuel remains their single largest operating expense, and the recent spike has left many carriers struggling to keep fares steady while maintaining schedules.

Keyamo said the federal government has now directed stakeholders to begin urgent talks involving fuel marketers, airline operators, and regulators. The aim is to reach what he called “fair and reasonable” pricing for Jet A1 within 48 to 72 hours. The outcome of those discussions is expected to be made public, a move officials say is intended to reduce uncertainty.

Debt relief, fee discounts for airlines

The latest intervention follows a series of meetings held at the Ministry of Aviation and Aerospace Development, where officials also engaged representatives from the Ministry of Petroleum Resources and private sector operators. Those discussions focused on the rapid increase in fuel costs and the pressure it has placed on airline operations.

In addition to the debt relief, the government has approved discounts on certain outstanding fees owed by airlines to federal agencies. Authorities say the measure is designed to provide short-term breathing space for carriers while broader cost issues are addressed.

A special committee is also expected to be set up in the coming days to review taxes and levies included in airfares. Government officials say the goal is to reduce overlapping charges that have contributed to higher ticket prices for passengers and operational strain for airlines.

Airlines weigh costs amid uncertainty

The move comes as global fuel markets remain unsettled, with higher energy prices affecting airline operations in several regions. Industry analysts point to ongoing disruptions in global supply chains and geopolitical tensions that have added pressure to already volatile fuel costs.

Nigeria’s domestic airlines say the pressure is already affecting operations. Several carriers warned that without relief measures or cost adjustments, they may have to increase airfares further or reduce flight operations to manage rising expenses and sustain services.

No dollar-denominated figure was provided in the government’s announcement regarding the relief package. The coming days, particularly the 72-hour pricing talks, are expected to show how quickly policymakers and industry players can align on measures to stabilize costs.