MON APRIL 27 2026-theGBJournal| The Centre for the Promotion of Private Enterprise (CPPE) has welcomed President Bola Ahmed Tinubu’s approval of a 30% discount on outstanding debts owed by Nigerian airlines, describing the move as a timely and commendable intervention for operators weighed down by rising and unsustainable costs.
While applauding the relief as a much-needed fiscal breather, CPPE insists that the discount, though significant, is only a short-term cushion and not a substitute for the deeper structural reforms required to rescue Nigeria’s fragile aviation sector.
According to the CPPE, the 30% debt discount offers immediate relief to domestic airlines struggling under severe financial pressure and reflects a responsive intervention by the Federal Government at a critical time for the industry.
The organisation also commended the Minister of Aviation and Aerospace Development, Festus Keyamo, for his proactive engagement with stakeholders and sustained efforts to support the sector.
However, CPPE stressed that while the debt concession is a positive and necessary step, it falls far short of addressing the more fundamental cost distortions threatening the survival of domestic carriers.
According to the private sector advocacy group, the real challenge confronting Nigerian airlines lies in the excessively high and fragmented cost structure imposed by multiple regulatory agencies across the aviation value chain.
CPPE noted that airlines continue to grapple with an onerous burden of taxes, fees and levies from agencies such as the Nigerian Civil Aviation Authority (NCAA), the Federal Airports Authority of Nigeria (FAAN), and the Nigerian Airspace Management Agency (NAMA).
These charges, the group said, are estimated to consume as much as 35% of airline revenues—an unsustainable cost profile for an industry globally known for thin margins and high operating risks.
The organisation warned that such a hostile operating environment continues to undermine the viability of domestic airlines, fuel the sector’s persistently high mortality rate, and weaken investor confidence in the industry.
It argued that this cost pressure is especially troubling given the strategic importance of aviation to national economic integration, trade, investment flows, and business mobility.
CPPE further noted that the importance of air travel in Nigeria has grown significantly amid worsening insecurity on the roads, making aviation an increasingly vital and safer transportation alternative for many Nigerians.
Yet, despite its strategic relevance, the sector remains constrained by a punishing cost regime that raises ticket prices, weakens service delivery, and threatens long-term sustainability.
The group therefore urged the Federal Government to treat the 30% debt discount as only a first step and move swiftly toward comprehensive reform of the aviation cost environment.
It called for a broad rationalisation of aviation-related charges, including ticket sales charges, cargo sales charges, passenger service charges, landing and parking fees, aircraft inspection fees, administrative and facility charges, boarding bridge fees, fuel-related charges, and import duties on aircraft and spare parts.
According to CPPE, the current framework is excessively burdensome, fragmented and economically counterproductive. It argued that streamlining and moderating these charges would significantly improve the competitiveness, resilience and financial sustainability of domestic airlines.
CPPE maintained that reducing the multiplicity and scale of aviation charges is not only an economic necessity but also a strategic safety imperative. Excessive financial strain on operators, it warned, could ultimately compromise operational efficiency and service standards.
The organisation concluded that government intervention in the aviation sector must go beyond temporary debt relief.
For CPPE, the 30% discount is a welcome and commendable reprieve—but what the sector urgently needs is a comprehensive overhaul of its cost structure to unlock investment, improve service quality, moderate ticket prices and secure the long-term survival of Nigeria’s domestic airline industry.
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