Nigeria’s Federal Government is advancing a package of tax reliefs and debt waivers for domestic airlines in a bid to stabilise the aviation sector and protect tourism-linked travel from the crippling surge in Jet A1 fuel prices. The intervention follows emergency engagements between regulators, airline operators and oil marketers, after carriers warned that soaring fuel costs—now the single largest expense—were pushing operations toward collapse.
Under the proposed measures, President Bola Tinubu has approved in principle significant discounts on airlines’ outstanding debts to aviation agencies, with authorities also considering a broader review of taxes, levies and ticket-related charges to ease financial pressure across the industry. Aviation Minister Festus Keyamo said the reforms are designed to prevent service disruptions, lower operational costs and sustain passenger traffic, particularly in tourism-dependent travel corridors.
The policy push comes amid a deepening fuel crisis that saw Jet A1 prices spike by over 300 percent within weeks, forcing airlines to contemplate a nationwide shutdown before government intervention halted the move. With fuel accounting for more than a third of operating costs, officials warn that unchecked price volatility could ripple across the economy, driving up fares, reducing connectivity and weakening tourism flows.
