The Centre for the Promotion of Private Enterprise (CPPE) has commended the federal government's decision to grant a 30% discount on outstanding debts owed by Nigerian airlines. Muda Yusuf, the Chief Executive Officer of CPPE, described the move as a timely intervention to alleviate financial pressure on operators in the aviation sector.
In a statement released on Sunday, April 26, 2026, Yusuf noted that the approval by President Bola Ahmed Tinubu provides short-term relief to airlines grappling with rising and unsustainable operating costs. However, he cautioned that the debt relief does not tackle the deeper structural challenges that threaten the sustainability of the aviation industry in Nigeria.
Calls for Comprehensive Reforms
Yusuf emphasized that airlines continue to face an excessive burden of taxes, fees, and levies imposed by key regulatory and operational agencies, including the Nigerian Civil Aviation Authority (NCAA), the Federal Airports Authority of Nigeria (FAAN), and the Nigerian Airspace Management Agency (NAMA). He stated:
"Although the 30% debt discount is a welcome short-term relief measure that may help improve liquidity and provide temporary breathing space for struggling airlines, it does not address the fundamental and long-standing structural issues within Nigeria's aviation sector."
He added that the sector continues to grapple with an unsustainable burden of multiple taxes, fees, and levies, which collectively distort cost structures, weaken competitiveness, and threaten the long-term viability of domestic carriers.
Growing Reliance on Air Travel
Yusuf highlighted the increasing reliance on air travel due to worsening insecurity on several road corridors, noting that more Nigerians now depend on aviation as a safer mode of transportation. Despite this growing demand, he expressed concern over the persistently high airline mortality rate, attributing it largely to a harsh and unsupportive operating environment.
"The current regime spanning ticket sales charges, cargo sales charges, passenger service charges, landing and parking fees, aircraft inspection charges, administrative and facility fees, boarding bridge charges, fuel-related charges, and import duties on aircraft and spare parts is overly burdensome, fragmented, and detrimental to the sustainability of domestic airline operations," Yusuf said.
He argued that the multiplicity and magnitude of these charges place a significant strain on domestic airlines, limiting their ability to invest, expand, and operate sustainably. The CPPE boss warned that continued financial pressure on operators could have broader implications for safety, service quality, and long-term sector stability.
Imperative for Streamlined Cost Structure
Yusuf stressed that a streamlined and moderated cost structure is imperative to enhance the viability and competitiveness of domestic airlines. He called for urgent and comprehensive reforms on aviation charges to ensure the sector's growth and sustainability.
In related news, the Nigeria Civil Aviation Authority (NCAA) has officially granted an Air Operator Certificate (AOC) to Enugu Air, enabling the state-owned carrier to commence scheduled commercial flight operations in Nigeria. The certificate was presented at the NCAA headquarters in Abuja by the Director-General of Civil Aviation, Chris Najomo. This development adds Enugu Air to the growing list of state-owned carriers operating domestic services.
