The Federal Government is considering debt waivers and tax relief measures to prevent a shutdown of domestic airline operations in Nigeria following a sharp rise in Jet A1 aviation fuel prices.

The move comes amid rising concerns over the sustainability of local airline operations, as fuel prices have surged in recent weeks.

The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this after a high-level meeting in Abuja on Wednesday evening, according to The PUNCH.

The Airline Operators of Nigeria had initially planned to suspend flight operations on April 20, but the planned shutdown was later called off after government engagement, including commitments to urgent negotiations to address the crisis.

Jet A1 prices, a major driver of airline costs in Nigeria, reportedly rose from about N900 per litre in February to over N3,000 per litre as of April, driven by global supply disruptions linked to geopolitical tensions in the Middle East.

Speaking after the meeting, Keyamo said President Bola Tinubu had been briefed and directed immediate consideration of relief measures.

He said the first proposal is a “generous discount” on debts owed by airlines to aviation agencies, including the Nigerian Airspace Management Agency (NAMA), Federal Airports Authority of Nigeria (FAAN), and the Nigerian Civil Aviation Authority (NCAA), with the final decision to be taken by the President.

“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 and so forth.”

“The percentage of discounts and all that Mr President will decide, he is so concerned about what is happening,” the Aviation Minister said.

“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.”

He added that the President commended airlines for maintaining fares despite rising costs, noting that government intervention was necessary to support the sector.

Keyamo also said a committee would be set up to review levies, taxes, and charges in domestic airfares, with recommendations expected to ease pressure on airlines and passengers.

He added that the President would also engage operators on wider sector challenges, including financing and long-term stability.

Airline operators, under AON, attributed the crisis to the sharp rise in Jet A1 prices, arguing that local increases far exceeded global crude oil trends. They warned that operations had become financially unsustainable.

While welcoming government intervention, airlines insisted that deeper reforms may still be required, including debt waivers, fuel pricing regulation, and improved access to low-interest financing.

The crisis escalated after operators warned of a nationwide suspension of flights on April 20, 2026, due to rising aviation fuel costs.

In a letter to the Major Energies Marketers Association of Nigeria (MEMAN), AON said Jet A1 prices had jumped from about N900 per litre in late February to over N3,000 per litre within weeks.

Operators said the increase was not aligned with global crude oil trends. Airlines warned that operations had become commercially unviable. They said continued operations could no longer be sustained without urgent action.

The warning raised concerns over possible nationwide travel disruptions. Following this, Keyamo appealed for suspension of the shutdown, warning it would severely affect Nigeria’s economy, trade, and mobility. He also confirmed emergency engagements and a high-level meeting held on April 22, 2026, to address the crisis.

Jet fuel costs now account for over 40% of airline operating expenses in Nigeria, compared to about 25% globally, according to industry estimates.

Experts had earlier warned that supply constraints could worsen delays and cancellations as marketers struggle to restock Jet A1.

They also said airlines may be forced to increase fares due to rising costs. The situation, they noted, could further destabilise operations if fuel supply tightens.

Globally, jet fuel shortages are also affecting parts of Asia and Europe, with some airlines reducing flight frequency amid supply pressures.

Nigeria’s aviation sector already faces heavy tax and levy burdens, which industry players say worsen fuel cost pressures.

From December 1, 2025, an additional $11.5 security levy under the Advance Passenger Information System (APIS) was introduced.

This raised total security charges per ticket to $31.50. The NCAA requires airlines to remit the charge on every ticket sold. The system, the NCAA noted, is aimed at improving border security and passenger tracking.

According to the International Air Transport Association (IATA), Nigeria generated about $62 million from airline ticket taxes in 2024.

A 2024 African Airlines Association (AFRAA) report ranked Nigeria among countries with the highest air travel taxes in Africa, alongside Sierra Leone and the Benin Republic.

The report warned that Africa’s aviation tax burden remains among the highest globally, affecting affordability and airline profitability.