Dare Babalola
The Centre for the Promotion of Private Enterprise (CPPE) has welcomed the Federal Government’s decision to grant a 30 per cent discount on outstanding debts owed by domestic airlines, describing the move as a timely intervention to ease mounting financial pressures in the aviation industry.
In a statement issued on Sunday, CPPE Chief Executive Officer, Muda Yusuf, commended President Bola Tinubu for approving the relief, noting that it would provide short-term support for operators grappling with rising operational costs.
“The intervention provides timely relief to operators grappling with escalating and unsustainable operating costs,” Yusuf said.
He also acknowledged the role of the Minister of Aviation and Aerospace Development, Festus Keyamo, praising his engagement with stakeholders in the sector.
“CPPE also acknowledges the proactive support of the Minister, whose consistent engagement with industry stakeholders has been impactful and commendable,” he added.
Despite the commendation, the CPPE boss stressed that the debt relief does not address the deeper structural issues affecting the aviation sector, particularly the high cost burden imposed by regulatory agencies such as the Nigerian Civil Aviation Authority, Federal Airports Authority of Nigeria, and Nigerian Airspace Management Agency.
“The burden of multiple taxes, fees and levies remains excessively high. Industry estimates suggest that these charges collectively account for as much as 35 per cent of airline revenues,” Yusuf stated.
He warned that such cost pressures are unsustainable for an industry already operating on thin margins, adding that Nigeria’s aviation sector remains critical to economic growth, national integration, and safer mobility amid rising insecurity on roads.
“The sector continues to suffer from a persistently high airline mortality rate, largely reflecting the difficult and hostile operating environment,” he said.
Yusuf called on the Federal Government to urgently rationalise aviation charges, describing the current framework as fragmented and overly burdensome.
“The current regime is overly burdensome, fragmented and detrimental to the sustainability of domestic airline operations,” he noted.
According to him, reducing both the number and scale of charges would significantly boost the viability and competitiveness of local carriers, while also enhancing safety standards.
“A streamlined and moderated cost structure is imperative, this is not only an economic imperative but also a safety consideration,” he added.
The CPPE boss emphasised that government intervention must go beyond debt relief to include comprehensive reforms that will lower costs, improve service quality, and ensure the long-term sustainability of Nigeria’s aviation sector.
