Chairman of Air Peace, Allen Onyema, has warned that more domestic airlines may shut down in the coming days despite recent intervention by President Bola Tinubu.
Speaking on TVC News’ News at 10 on Friday, Onyema commended the Federal Government for approving a 30 percent reduction in debts owed by airlines to aviation agencies, describing the move as a positive step for the sector.
“We appreciate Mr President for being magnanimous enough to offer us a 30% reprieve… That’s a very welcome development,” he said, adding that the current administration has shown more support to domestic airlines than any previous government since independence.
However, Onyema emphasised that the most critical challenge facing the industry remains the sharp rise in aviation fuel prices, which he attributed to fuel marketers rather than government policies.
“For the avoidance of doubt, I want Nigerians to know that the airlines are not after the government. Government is not our problem,” he stated.
He explained that while global crude oil prices have increased by about 20 to 30 percent due to geopolitical tensions, including developments involving Iran, aviation fuel prices in Nigeria have risen far more steeply.
“Before the crisis, we were buying fuel at about N900 per litre. Now it has risen to between N2,700 and N2,900, with some selling as high as N3,300 to N3,500,” he said, noting that the surge—estimated at over 250 percent—has placed severe strain on airline operations.
According to him, many airlines are now operating primarily to cover fuel expenses while also grappling with high borrowing costs, with interest rates reaching up to 35 percent.
“All the airlines in Nigeria have been flying to pay fuel marketers only, and you don’t want to compromise safety,” he said.
Onyema warned that the situation could deteriorate further without urgent intervention, revealing that at least two additional airlines are at risk of shutting down imminently.
“We want to meet with Mr. President because as I speak to you now about two more airlines want to go down by Monday. It is very urgent that we meet with Mr. President so that he will hear from us. He’s our president and he’s a very listening president. That is not that of a good news if we have airlines folding up again,” he added.
The concerns come shortly after the Federal Government approved a 30 percent reduction in outstanding debts owed by airlines to agencies such as the Federal Airports Authority of Nigeria (FAAN) and the Nigerian Airspace Management Agency (NAMA).
The Minister of Aviation and Aerospace Development, Festus Keyamo, confirmed the approval, stating, “This evening, Mr. president has definitely approved a 30 percent discount.”
Despite the relief, industry stakeholders say sustained solutions to fuel pricing and financing challenges will be critical to preventing further disruptions in Nigeria’s aviation sector.
