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Airline owes FG N14bn, threatens aviation agencies’ operations – Keyamo

The Minister of Aviation and Aerospace Development, Festus Keyamo, has disclosed that a domestic airline owes the Federal Government about N14bn, warning that the growing debt is limiting the capacity of aviation agencies to deliver essential services despite efforts to support operators.

Keyamo explained that the government has deliberately avoided adopting punitive measures against indebted airlines, choosing instead to offer debt relief and negotiate flexible repayment arrangements in view of the challenging operating conditions confronting the aviation sector.

Speaking during a recent interview on Channels Television, the minister revealed that although the Federal Government had written off 30 per cent of the debts owed by airline operators, the outstanding liabilities remained significant, with one domestic airline alone still owing about N14bn.

“On debt relief, operators are beginning to see the impact. We are not even moving hard on them because we tried to understand the situation, but right now, just like the way they say it, ‘eye on red’, just one of them is owing us N14 billion, and if you remove the 30 per cent the government gave, it’s still huge,” Keyamo said.

He said the outstanding debts have placed aviation agencies under financial strain, affecting their ability to carry out their statutory responsibilities.

While acknowledging the economic pressures facing airline operators, the minister stressed that they must also fulfil their financial obligations.

Keyamo disclosed that the Federal Government recently met with airline operators and directed them to submit structured repayment plans, adding that the initiative has already begun to produce positive results.

He said, “Because of all these things, agencies can no longer perform their functions. We understand their plight, but the government too must have these revenues. These things cannot be free; they want it to be free, but it can’t be free. We built their airports, provided navigational services, power, and all. We are trying to understand them instead of being hard.

“Recently, I called a meeting and told them to make a schedule on how to pay, and in the last three weeks or so, many of them paid 10 per cent of their debt, and they are beginning to pay the rest little by little.”