President Bola Tinubu has intervened in the escalating crisis in Nigeria's aviation sector, following threats by airline operators to suspend services over the soaring cost of Jet A1 fuel.
Vanguard reports that the development comes after an emergency meeting between the minister of aviation and aerospace, Festus Keyamo, airline operators, and regulators.
Recall that Airline Operators of Nigeria, AON, warned that airlines across the country may suspend operations from April 20, 2026, over what it described as an "astronomical and unsustainable" rise in the price of Jet A1 fuel.
During the meeting, stakeholders described the situation as critical, with rising fuel costs pushing airline operations to the brink.
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Briefing journalists after the meeting on Wednesday evening, Keyamo said he had earlier met with the President, who directed that a formal request be submitted immediately to address the situation.
According to him, Tinubu has agreed to grant airlines a discount on debts owed to aviation agencies, including the Nigerian Airspace Management Agency (NAMA), the Federal Airports Authority of Nigeria (FAAN), and the Nigerian Civil Aviation Authority (NCAA).
"He specifically asked that we bring the request to him first thing tomorrow and assured that he will personally determine the level of discount," the minister said.
He added that the President expressed deep concern over the crisis and commended airline operators for not increasing ticket prices despite mounting operational costs.
As part of broader interventions, Keyamo also revealed that Tinubu directed that a committee be set up to review multiple taxes, levies, and fees imposed on domestic air travel.
The committee is expected to recommend reductions or removals of certain charges to ease the burden on both operators and passengers.
Keyamo noted that the President is also expected to meet directly with airline operators in the coming days to discuss long-term solutions, including access to affordable financing.
Earlier, the Permanent Secretary of the Ministry of Petroleum Resources, Patience Oyekunle, disclosed that fuel marketers would be invited to a follow-up meeting scheduled for the next day, with expectations that key issues around pricing would be addressed.
"We hope that by tomorrow, by 4 p.m., we would have resolved some of these issues," she said.
Airline operators, however, maintained that the situation remains dire, blaming what they described as a disproportionate spike in Jet A1 fuel prices in Nigeria.
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Speaking for the operators, Allen Onyema, founder and Chairman of Air Peace, said fuel prices had surged by about 300 percent, a sharp contrast to global trends where increases in crude oil prices typically translate proportionately to refined products.
"The airlines are bleeding. We threatened to shut down not because we wanted to, but because we could no longer sustain operations," he said.
He stressed that safety could not be compromised, noting that continued operations under financial strain could affect critical maintenance activities.
While welcoming the President's proposed debt relief, the airlines called for a total waiver of all outstanding debts and a temporary suspension of further payments until fuel prices stabilise.
They also raised concerns over the role of fuel marketers, questioning the sharp increase in prices despite relatively lower supply costs from domestic sources, including the Dangote refinery.
In addition, operators highlighted the challenge of high borrowing costs in Nigeria, noting that while airlines globally access financing at about three percent interest rates, Nigerian carriers face rates as high as 30 to 35 percent.
They urged the federal government to strengthen the Bank of Industry to provide more affordable funding options for the sector.
