Federal Government to Offer Debt Relief Discounts to Domestic Airlines, Establishes Committee on Multiple Taxation
The Federal Government has announced plans to grant domestic airlines discounts on outstanding debts owed to aviation agencies as part of emergency measures to avert flight disruptions and curb rising airfares.
Minister of Aviation and Aerospace Development Festus Keyamo disclosed the decision in Abuja during a meeting with the Minister of State for Petroleum Resources (Oil), airline operators, and other aviation stakeholders. The intervention follows warnings by the Airline Operators of Nigeria that carriers may suspend operations and increase fares due to soaring Jet A1 fuel costs.
Keyamo stated that the percentage discount on debts owed to the Nigerian Airspace Management Agency, the Federal Airports Authority of Nigeria, and the Nigerian Civil Aviation Authority will be determined by President Bola Tinubu. The President has directed airlines to submit formal requests regarding the proposed relief without delay.
"A generous discount on debts owed to agencies such as NAMA, FAAN, and NCAA is under consideration," Keyamo said.
The President has also approved the establishment of a committee to review multiple taxes, levies, and charges imposed on domestic flight tickets. The committee is tasked with reducing the cost burden on both operators and passengers.
Keyamo emphasised that the government acted swiftly to prevent disruption to air travel. "The federal government intervened urgently following the operators' warning," he said.
Minister of State for Petroleum Resources (Oil) Heineken Lokpobiri, represented by Permanent Secretary Patience Oyekunle, announced that a meeting with oil marketers will be held on Thursday to address fuel pricing concerns.
Speaking on behalf of AON, Air Peace Chief Executive Officer Allen Onyema requested a full waiver of outstanding debts. He also urged the government to strengthen the Bank of Industry to enable airlines to access loans at lower interest rates. Onyema described the reported 300 percent rise in aviation fuel prices as abnormal and called for restraint from oil marketers.