The Centre for Promotion of Private Enterprise (CPPE) has expressed concerns that the Federal Government’s recently announced 30 percent debt discount for airline operators will not adequately address the underlying structural challenges confronting Nigeria’s aviation sector.
The position was outlined in a statement released on Sunday by the organisation’s Chief Executive Officer, Muda Yusuf. While acknowledging the government’s attempt to cushion the impact of rising operational costs, he emphasised that the measure falls short of delivering lasting solutions.
According to Yusuf, the aviation sector continues to grapple with significant cost pressures, including multiple taxation and the steep rise in aviation fuel prices, commonly referred to as Jet A1. These factors, he noted, have placed considerable strain on airline operators.
The Federal Government had introduced the debt discount as part of efforts to prevent a potential shutdown of airline operations and a further increase in airfares, following warnings from operators about a sharp spike—reportedly around 300 percent—in the cost of Jet A1.
However, the CPPE argued that addressing the sector’s long-term viability requires more comprehensive reforms, particularly in relation to its cost structure. The organisation called for a thorough rationalisation of taxes and charges imposed on airlines.
“A streamlined and moderated cost structure is imperative. Reducing both the multiplicity and magnitude of these charges will significantly enhance the viability, competitiveness, and resilience of domestic airlines.
“This is not only an economic imperative but also a safety consideration, as excessive financial pressure on operators could have unintended consequences for operational standards.
“Government support for the aviation sector must therefore go beyond debt relief. What is needed is a comprehensive reform of the aviation cost environment to ensure that domestic airlines are not overburdened by charges that undermine investment, weaken service quality, raise ticket prices, and threaten the long-term sustainability of the sector,” CPPE stated.
The think-tank maintained that without such reforms, short-term interventions like debt relief may offer limited impact, leaving the industry vulnerable to recurring challenges.
