馃嚦馃嚞NigeriaWest Africa
Nigerian government to waive airline debts amid aviation fuel crisis
via Punch Nigeria5 min read
The Federal Government of Nigeria plans to waive debts owed by domestic airlines to aviation agencies, a measure announced by Minister of Aviation and Aerospace Development Festus Keyamo. This intervention follows a high-level meeting in Abuja to address the rising cost of Jet A1 fuel. Keyamo stated that President Tinubu mandated a request for a generous discount on debts owed to agencies like NAMA, FAAN, and NCAA, expressing appreciation to airline operators for not increasing prices despite the challenges. The President will also consider establishing a committee to review and potentially reduce levies, taxes, and fees on domestic tickets, aiming to provide relief to Nigerian travelers. Additionally, a one-on-one meeting between the President and airline operators is planned for broader discussions on access to capital. Allen Onyema, Chairman/Chief Executive Officer of Air Peace, attributed the crisis to the disproportionate increase in Jet A1 fuel prices, noting a 300 percent rise in Nigeria compared to a 20 percent global increase after the Hormuz blockade. He emphasized that airlines were "bleeding" and had threatened to shut down due to unsustainable fuel costs, but suspended the action after appeals from the Minister. Onyema called for a total waiver of all debts and a suspension of further payments until the Hormuz situation stabilizes. He also highlighted the high cost of funding acquisition for airlines in Nigeria, urging the government to fund the Bank of Industry
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This summary was AI-generated from a story originally published by Punch Nigeria.
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