Group says 30% discount offers breathing space but calls for urgent overhaul of aviation cost structure….
The Centre for the Promotion of Private Enterprise has commended President Bola Ahmed Tinubu for approving a 30 percent discount on outstanding debts owed by Nigerian airlines, describing the move as a timely intervention for operators under mounting financial pressure.
In a statement signed by its Chief Executive Officer, Muda Yusuf, the organisation said the relief would ease the burden of rising and unsustainable operating costs currently facing the aviation industry.
The group also acknowledged the role of the Minister of Aviation and Aerospace Development, Festus Keyamo, praising his continued engagement with stakeholders in the sector.
However, CPPE cautioned that while the debt relief provides short-term support, it does little to resolve the deeper structural issues affecting airline operations in Nigeria.
According to the group, one of the biggest challenges remains the heavy load of taxes, fees, and levies imposed by regulatory agencies such as the Nigerian Civil Aviation Authority, Federal Airports Authority of Nigeria, and the Nigerian Airspace Management Agency.
These combined charges, CPPE noted, account for as much as 35 percent of airline revenues, an unsustainable level in an industry already known for thin profit margins.
The organisation stressed that Nigeria’s aviation sector plays a critical role in economic connectivity, trade, and investment flows, while also serving as a safer alternative to road travel in many parts of the country.
Despite its importance, the sector continues to face a high rate of airline failures, which CPPE attributed largely to the harsh operating environment.
To address this, the group called on the Federal Government to urgently review and streamline the current cost regime. It described the existing structure covering ticket and cargo charges, passenger service fees, landing and parking costs, inspection and administrative charges, fuel-related expenses, and import duties on aircraft parts as excessive and fragmented.
CPPE argued that reducing both the number and scale of these charges would significantly improve the viability and competitiveness of domestic airlines, while also strengthening safety standards by easing financial pressure on operators.
The group concluded that meaningful support for the aviation industry must go beyond one-off interventions, urging a comprehensive reform of the cost framework to ensure long-term sustainability, lower ticket prices, and improved service delivery across the sector.
