Tinubu Moves to Waive Airline Debts, Slash Ticket Taxes Amid Jet Fuel Crisis

President Bola Ahmed Tinubu has approved sweeping measures aimed at stabilizing Nigeria’s aviation sector, including plans to waive debts owed by domestic airlines and reduce multiple taxes and levies on air travel.

The announcement was disclosed by the Minister of Aviation, Festus Keyamo, following a high-level meeting with airline operators and oil marketers in Abuja. The meeting focused on addressing the sharp increase in the cost of Jet A1 fuel, which has put significant pressure on airline operations.

Keyamo revealed that the president is prepared to grant a “generous discount” on outstanding debts owed by airlines to key aviation agencies, including the Nigerian Airspace Management Agency, Federal Airports Authority of Nigeria, and the Nigerian Civil Aviation Authority. The exact percentage of the debt relief will be determined by the president.

According to the minister, Tinubu also plans to establish a committee tasked with reviewing and eliminating multiple levies, taxes, and fees imposed on domestic flight tickets. The move is intended to ease the financial burden on both airline operators and passengers.

“The president is deeply concerned about the situation and has directed that immediate steps be taken to provide relief to the industry and Nigerians,” Keyamo said.

In addition, Tinubu is expected to hold direct talks with airline operators to address broader challenges, including access to financing and long-term sustainability of the sector.

Responding on behalf of airline operators, Allen Onyema, Chairman of Air Peace, urged the government to go further by granting a full waiver of all airline debts rather than partial discounts. He also called for a temporary suspension of further debt payments until global fuel supply routes stabilize.

Onyema highlighted the crippling cost of financing in Nigeria, noting that while airlines globally access loans at around 3 percent interest rates, Nigerian carriers face rates as high as 30 to 35 percent. He appealed to the government to strengthen funding for the Bank of Industry to provide more affordable credit to the sector.

The proposed reforms come as part of broader efforts to cushion the impact of the ongoing Jet A1 fuel crisis, which has driven up ticket prices and strained airline operations across the country.