The Centre for the Promotion of Private Enterprise (CPPE) has commended President Bola Ahmed Tinubu for approving 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 sector.
CPPE said the debt relief would provide short-term breathing space for operators grappling with escalating and unsustainable operating costs, but cautioned that the measure does not address the deeper structural challenges threatening the viability of the industry.
The economic think tank also acknowledged the role of the Minister of Aviation and Aerospace Development, Festus Keyamo, noting that his continued engagement with stakeholders has been instrumental in drawing attention to the sector’s challenges.
Despite the intervention, CPPE stressed that the aviation industry remains weighed down by an excessive burden of taxes, fees and levies imposed by regulatory and service agencies, including the Nigerian Civil Aviation Authority (NCAA), Federal Airports Authority of Nigeria (FAAN), and the Nigerian Airspace Management Agency (NAMA).
According to the organisation, industry estimates indicate that these charges account for as much as 35 per cent of airline revenues, a level it described as incompatible with the thin profit margins that typically characterise the aviation business.
CPPE warned that the persistent cost burden continues to undermine the sustainability of domestic carriers, contributing to a high airline mortality rate and limiting the sector’s capacity to deliver reliable and affordable air transport services.
Highlighting the strategic importance of aviation to Nigeria’s economy, the group noted that the sector plays a critical role in economic connectivity, trade facilitation, investment flows and national integration.
It added that growing insecurity on road networks has further increased reliance on air travel, making the health of the aviation industry even more crucial.
The organisation therefore called on the Federal Government to undertake a comprehensive rationalisation of aviation charges, describing the current regime as fragmented, excessive and detrimental to industry growth.
It identified multiple cost components—including ticket and cargo sales charges, passenger service charges, landing and parking fees, aircraft inspection charges, administrative and facility fees, boarding bridge charges, fuel-related costs, and import duties on aircraft and spare parts, as key pressure points for operators.
CPPE argued that streamlining and moderating these charges would significantly enhance the viability, competitiveness and resilience of domestic airlines, while also improving service quality and reducing ticket prices for consumers.
It further noted that beyond economic considerations, easing financial pressures on airlines is also critical for maintaining high safety standards, warning that prolonged financial strain could have unintended operational consequences.
The think tank concluded that government support for the aviation sector must extend beyond debt relief to include far-reaching reforms aimed at creating a more enabling cost environment. Such reforms, it said, are essential to attract investment, strengthen industry stability and secure the long-term sustainability of Nigeria’s aviation sector.