President Bola Ahmed Tinubu has approved plans to grant debt relief to domestic airlines and review multiple taxes and levies on air tickets, in a bid to cushion the impact of the ongoing Jet A1 fuel crisis.
The Minister of Aviation, Festus Keyamo, disclosed this on Wednesday after a high-level meeting with airline operators and oil marketers in Abuja.
The meeting was convened to address the soaring cost of aviation fuel.
Keyamo said the President had directed that a request be brought forward for 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 Nigerian Civil Aviation Authority (NCAA).
He added that the exact terms of the relief would be determined by the President, who he said is concerned about the operational challenges facing airlines.
In addition, the minister revealed that Tinubu had approved the constitution of a committee to comprehensively review and potentially eliminate multiple levies, taxes and charges on domestic flight tickets.
The committee is expected to submit its recommendations within a short timeframe to ease costs for both operators and passengers.
Keyamo further disclosed that the President plans to hold a direct meeting with airline operators to discuss broader issues, including access to financing.
Responding on behalf of operators, Chairman of Air Peace, Allen Onyema, urged the government to grant a total waiver of airline debts rather than partial discounts, and called for a temporary suspension of further payments until global fuel supply pressures ease.
Onyema also appealed for intervention in the high cost of financing in Nigeria, noting that airlines access loans at interest rates of 30 to 35 per cent locally, compared to about three per cent globally.
He urged the government to strengthen funding for the Bank of Industry to provide more affordable credit to the aviation sector.
He commended President Tinubu’s responsiveness, citing the recent removal of the four per cent Free on Board (FOB) charge on airlines as a positive step.
(vitalnewsngr.com)
