Nigeria has averted a potentially damaging nationwide strike by domestic airlines by agreeing to write off their debts.
Festus Keyamo, minister of aviation and aerospace development, made this known after holding crucial talks with the aviation companies in Abuja.
“I had the privilege of meeting Mr President to brief him about the meeting, and Mr President mandated us to quickly bring a request to him. And the first request that he will consider and grant is a generous discount on the debts the airlines are owing the aviation agencies, NAMA, FAAN, NCAA, and so on.
“The percentage of discounts and all that Mr President will decide, he is so concerned about what is happening. And he asked me in particular to express his deep appreciation to the airline operators. He knows the conditions under which we operate. And he said he should thank you for not raising your prices despite all that has happened. So he has to also respond.“
Apart from debt relief. Keyamo said the government was also reviewing taxes.
“The second request Mr President has asked that we should bring for him to consider fully and grant is that he wants to set up a committee to address the issues of levies, taxes, and fees on domestic tickets once and for all. This request has been on for a long time. So Mr President will put the team together, and he’ll give them a deadline to report to him as quickly as possible on the government fees and charges and levies that we can take off domestic tickets for now to give respite to Nigerians who are also buying their tickets.
“And of course, he’ll consider a date for the airline operators to meet him one-on-one for the other more robust discussions regarding access to capital and all of that,” he said.
The debt relief effort comes at a time when domestic carriers have been grappling with high Jet A1 fuel prices, foreign exchange pressures, and accumulated charges owed to aviation agencies.
Industry stakeholders say the waiver is expected to ease liquidity constraints and prevent further disruptions in flight operations.
READ ALSO: Nigerian airlines threaten nationwide strike over rising fuel costs
Reciprocity
In a parallel development, the Airline Operators of Nigeria suspended its planned shutdown after direct intervention by Aviation Minister Festus Keyamo.
The decision followed high-level engagements between the government and airline operators, which resulted in commitments to address key industry concerns, including fuel pricing and financial burdens.
According to AON, the suspension of the strike was based on assurances received from the government, providing temporary relief to passengers and stakeholders who had braced for widespread flight cancellations.
Fuel Costs Push Airlines to the Brink
At the heart of the crisis is the soaring cost of aviation fuel, which accounts for a significant portion of airline operating expenses.
Nigerian carriers have repeatedly warned that without urgent government support, continued operations would become unsustainable.
The situation escalated as airlines signalled plans to halt services nationwide, citing inability to absorb rising costs.
Alex Onyeama, Chief Executive of Air Peace, explained the challenges.
“Why are we here in the first place? It was because of the astronomical rise of Jet A1 in Nigeria, which we consider not to be proportionate to the rise in the cost of crude oil all over the world. The standard is that if crude oil rises by 10 per cent, the byproduct of crude oil should rise by a proportionate rise in pricing.
“But in Nigeria, after the Hormuz blockade, Nigeria increased (Jet A1 price) by about 300 per cent, and these airlines are bleeding. We are bleeding. Yes, we threatened to shut down, not because we wanted to shut down, but because we had no money anymore to continue to pay for fuel and neglect other things that are supposed to be done in the aviation industry.
“And you know very well that your regime pushes utmost safety, and we don’t want to shorten safety. So we decided that instead of not having money to do other things like maintenance, but only buy the fuel that we needed, to shut down. We appreciate this government.
He added that, “The truth is that the marketers must be brought to book to explain how they got about the 300 per cent increase, when even Dangote is surprised, because what he is selling to us, his product, remains the cheapest. And some of them lifted from there. So why the astronomical rise?.
The move raised fears of a major disruption to domestic travel, with implications for business, tourism, and regional connectivity.
Industry Reaction
Aviation analysts say the combination of debt waivers and policy engagement signals a more proactive government approach to managing sector challenges.
Onyema said the airlines are happy because the President is very responsive and very listening, adding that “the other time, he removed the four per cent FOB for airlines within 24 hours.”
While details of the debt relief framework are still emerging, stakeholders believe the move could help airlines stabilise operations in the short term.
However, industry experts warn that structural issues such as fuel supply, forex availability, and infrastructure costs still need long-term solutions.
Turning Point
The twin developments highlight a sector operating under pressure but also one receiving renewed government attention.
For passengers, the immediate impact is clear: flights will continue, at least for now. For airlines, the challenge remains balancing rising costs with sustainable operations.
The broader question is whether these interventions mark the beginning of long-term reform or simply a temporary fix.
For now, the Nigerian aviation industry has stepped back from the edge.
