President Bola Tinubu Wednesday said he is considering granting discount on the debts airlines operators owed the aviation agencies in the sector.
The decision followed the astronomical rise in the cost of Jet A1 fuel and the growing concerns within the aviation industry, including the threat by airline operators to shut down operations if urgent measures are not taken.
The President has also directed the Minister of Aviation and Aerospace Development, Festus Keyamo to quickly bring a request to him, a formal request in writing first thing Thursday morning
Keyamo disclosed this in a closed-door meeting with the Airline Operators of Nigeria (AON) over a 300 per cent hike in aviation fuel prices.
He said: “This engagement underscores the federal government’s commitment to finding sustainable solutions to stabilize the aviation sector and ensure uninterrupted air transport services.
“In the last two hours, we have had very, very deep and robust discussions and frank discussions regarding the threats by the airlines to stop flying altogether because of the astronomical rise in the cost of jet A one fuel that has made the cost of their operations almost unbearable for now.
“Before this meeting, I had the privilege of meeting Mr. President to brief him about the meeting, and Mr. President mandated us to quickly bring a request to him, a formal request in writing first thing tomorrow morning.
“And the first request that he will consider and grant is a generous discount on the debts the airlines owing the aviation agencies, Nigeria Airspace Management Agency (NAMA), Federal Airport Authority of Nigeria (FAAN), Nigeria Civil Aviation Authority (NCAA) and so on and so forth.
“So Mr. President, specifically told me not to wait for a council memo that I should bring the letter to him as early as possible tomorrow, the percentage of discounts and all that, Mr. President will decide he’s so, so concerned about what is happening..”
Keyamo revealed that President said directed that ‘to set up a committee to address the issues of levies, taxes and fees on domestic tickets once and for all.
“This request has been on for a long time, so mister president will put the team together, and he will give them a deadline to report to him as quickly as possible on the fees, the government fees and charges and levies that we can take off domestic tickets for now to give respite to Nigerians who are also buying tickets.
“And of course, he will consider a date for the airline operators to meet him one on one for the other, more robust discussions regarding access to capital and all of that.
“Questions regarding access to capital and all of that. So that is what that’s the message from mr. President to this body,” Keyamo said.
Representing the Minister of State Petroleum Resources (Oil), the Permanent Secretary of the Ministry, Patience Oyekunle, said: “We have had very fruitful deliberations, and we have agreed to disagree and disagreed to agree.
“So at this point, since this is an urgent matter on the table, there is the suggestion and the agreement that the marketers will be invited here tomorrow for us to continue this deliberation, and hopefully come tomorrow, by 4pm come tomorrow would have some of these issues resolved.
Speaking on behalf of the Airline Operators of Nigeria (AON), Chairman/Chief Executive Officer, Air Peace, Allen Onyema, said: “Why are we here in the first place? Was because of the astronomical rise of Jet A1 fuel in Nigeria, which we consider not to be proportionate with the cost of or the rise in the cost of crude oil all over the world.”
According to Onyema, “The world, the standard is, if crude oil rises by 10% the byproduct of crude oil should rise by proportionate raise in the pricing.
“But in Nigeria, after the Straight of Hormuz blockade, 20%, Nigeria increased by about 300% and these airlines are bleeding.”