The Centre for Promotion of Private Enterprise (CPPE) said that the Nigerian government’s 30 percent debt discount for airline operators will not resolve the structural problems confronting the country’s aviation sector.
In a statement released on Sunday, CPPE Chief Executive Officer Muda Yusuf praised the government’s attempt to ease soaring operational costs caused by multiple taxes and the sharp rise in Jet A1 fuel prices. However, he warned that a one‑off debt relief measure will not provide lasting relief for airlines.
Yusuf argued that the sector requires a comprehensive rationalisation of its cost structure. “A streamlined and moderated cost framework is essential,” he said. “Reducing both the multiplicity and magnitude of charges will significantly improve the viability, competitiveness and resilience of domestic carriers.” He added that excessive financial pressure on operators could erode safety standards, making the issue both an economic and a safety concern.
The think‑tank called on the federal government to move beyond debt relief and implement a broader reform of aviation‑related taxes and fees. According to CPPE, the current “tax and charge regime undermines investment, weakens service quality, inflates ticket prices and threatens the long‑term sustainability of the sector.”
The call for reform follows the government’s announcement last week of a 30 percent discount on outstanding debts owed by airlines. The measure was intended to prevent airline shutdowns and curb potential fare hikes after operators warned of a possible disruption to air services. Airlines had highlighted a surge of approximately 300 percent in Jet A1 fuel costs, which they said threatened the sector’s stability.
Industry observers note that Nigeria’s aviation environment has been burdened by a complex web of levies, including airport charges, security fees, passenger service charges and fuel taxes. Critics argue that the cumulative effect of these taxes raises operating costs beyond the level faced by regional rivals, limiting the ability of Nigerian carriers to expand routes or upgrade fleets.
CPPE’s statement underscores the need for a coordinated policy response that addresses the root causes of high operating expenses rather than offering isolated financial relief. The think‑tank urged the Ministry of Aviation and the Federal Inland Revenue Service to work with stakeholders to design a cost‑effective regulatory framework.
If the government adopts the recommended reforms, airlines could see improved cash flows, lower ticket prices for consumers and a more robust domestic aviation market. Without such systemic changes, the sector may continue to face financial strain, risking service disruptions and reduced connectivity across the country.
