Nigeria is moving to prevent a potential shutdown of domestic airlines by offering debt relief and reviewing taxes on air travel, after carriers warned they could halt operations due to soaring fuel costs.
President Bola Tinubu has agreed in principle to write off part of the debts owed by local airlines to aviation agencies, following talks with industry stakeholders, Aviation Minister Festus Keyamo said.
The exact scale of the debt forgiveness will be determined after airlines submit formal requests, with the presidency expected to decide on the percentage to be waived.
Authorities also plan to establish a committee to review taxes, levies and charges imposed on domestic flight tickets, with a mandate to recommend reductions aimed at easing financial pressure on both airlines and passengers.
The intervention comes as Nigeria’s aviation sector faces mounting strain from sharply higher jet fuel prices, driven in part by global supply disruptions linked to the Iran conflict.
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Airlines have warned that the cost surge is unsustainable, raising the risk of widespread service disruptions in a country where air travel plays a key role in connecting major cities.
Officials said further talks are scheduled with fuel marketers to address pricing challenges and ensure more stable supply, in a bid to avert immediate operational risks.
The crisis highlights broader vulnerabilities in Nigeria’s aviation industry, where operators have long struggled with high operating costs, foreign exchange constraints and infrastructure limitations.
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Jet fuel — typically one of the largest cost components for airlines — has become significantly more expensive in recent months, forcing carriers to raise fares, cut capacity and reconsider expansion plans.
Analysts say the government’s proposed measures could provide short-term relief, but structural challenges remain, including reliance on imported fuel and exposure to currency volatility.
The situation mirrors wider pressures across the global aviation industry, where rising energy costs have strained profitability and complicated recovery efforts following earlier disruptions.
In Nigeria, however, the impact has been particularly acute due to existing financial fragilities among domestic carriers.
Industry stakeholders have repeatedly called for policy support, including tax rationalisation and improved access to foreign exchange, to stabilise operations and prevent further consolidation or closures.
The government’s decision to consider debt write-offs marks one of the most direct interventions in recent years, signalling concern over the potential economic and social impact of an airline shutdown.
Air transport is critical for business travel, logistics and regional connectivity in Africa’s largest economy, where alternatives such as rail and road infrastructure remain underdeveloped in many areas.
Officials said discussions with fuel suppliers are expected to continue, with the aim of reaching a near-term agreement that could help stabilise prices and ensure consistent supply to airlines.
While the proposed measures may help avert an immediate crisis, analysts caution that longer-term reforms will be needed to build resilience in the sector, particularly as global energy markets remain volatile.
For now, attention will focus on whether the government’s intervention can quickly restore confidence among operators and prevent disruptions to domestic air travel.
