Federal Government Moves to Cushion Airlines with Debt Relief Plan Amid Rising Fuel Costs

The Federal Government is weighing measures to ease the financial strain on domestic airlines as the cost of aviation fuel continues to surge. Central to the plan is a proposed reduction or waiver of debts owed by airline operators to key aviation agencies, aimed at stabilising the sector and preventing disruptions to flight operations.

This move follows a high-level engagement between government officials, airline operators, and industry stakeholders in Abuja, where concerns over the sharp increase in Jet A1 fuel prices dominated discussions. The Minister of Aviation and Aerospace Development explained that the President has been briefed and is considering granting significant concessions on outstanding debts to help operators stay afloat.

Beyond debt relief, the government is also exploring broader reforms to reduce the burden of taxes, levies, and service charges imposed on domestic flights. A dedicated committee is expected to be set up to review these costs and recommend adjustments that could make air travel more affordable while supporting airline sustainability.

Airline operators have attributed the crisis to the steep and disproportionate rise in aviation fuel prices, which has significantly increased operating costs. Many carriers warn that without urgent intervention, maintaining operations could become increasingly difficult, raising the risk of service disruptions across the country.