KEY POINTS

• The federal government approved a 30% reduction in debts owed by domestic airlines to aviation agencies.
• The move aims to support airlines grappling with a 300% surge in aviation fuel prices.
• Operators warn the sector remains under severe strain and are calling for further government intervention.

The federal government has approved a 30 percent reduction in debts owed by domestic airlines to aviation agencies, as part of efforts to support the struggling sector.

The move comes shortly after airline operators raised alarm over the sharp increase in Jet A1 fuel prices, which surged by over 300 percent within weeks.

Airline stakeholders say the industry remains under pressure, urging stronger measures including debt waivers and action against fuel price inflation.

The intervention comes just a day after the minister revealed that the federal government was considering measures to ease the burden on airlines, particularly in response to the soaring cost of aviation fuel.

AON had threatened to suspend operations nationwide

Earlier in April, the Airline Operators of Nigeria (AON) had threatened to suspend operations nationwide, citing the sharp rise in the price of Jet A1 fuel—from about ₦900 per litre in late February to as high as ₦3,300 per litre, marking an increase of over 300 percent.

However, the planned shutdown was temporarily shelved following appeals by the aviation minister.

Industry leaders have continued to express concerns over the sustainability of operations. Allen Onyema, chairman of Air Peace, described the situation as a major crisis driven largely by the fuel price hike. He called for an investigation into fuel marketers, questioning the basis for the steep increase.

Onyema also noted that many airlines are struggling to stay afloat, relying heavily on loans to finance fuel purchases while trying to maintain safety standards and operational efficiency.