The Federal Government of Nigeria has proposed a significant discount on legacy debts owed by domestic airlines to avert a total collapse of the country’s aviation sector following a high-level meeting.
Aviation Minister Festus Keyamo announced the proposal on Wednesday, stating that President Bola Tinubu directed the ministry to negotiate a “generous discount” on liabilities owed to various regulatory agencies.
However, the Airline Operators of Nigeria (AON) rejected the offer, demanding a full 100 percent waiver of all outstanding debts to ensure their continued survival in the harsh economy.
The operators warned that without a total waiver and urgent intervention, a total shutdown of domestic flight operations is imminent due to an unsustainable liquidity crisis facing the industry.
The standoff is exacerbated by skyrocketing aviation fuel prices, which have surged to over ₦3,300 per liter, representing a nearly 300 percent increase in just two months.
AON representatives argued that partial discounts are insufficient because fuel costs now consume the majority of their revenue, making statutory debt repayments impossible under current market conditions.
The government has also pledged to review multiple taxation and ticket levies, though the aviation ministry is simultaneously grappling with a 23 percent budget cut for the 2026 fiscal year.
A special committee is expected to be formed to find a middle ground, but airlines remain firm that they will suspend services if a total waiver is not granted.
