The Centre for the Promotion of Private Enterprise (CPPE) has commended President Bola Ahmed Tinubu for approving a 30 percent discount on outstanding debts owed by Nigerian airlines, describing the move as a timely intervention for operators facing rising and unsustainable costs.
In a statement issued on April 26, 2026, the organisation also praised the Minister of Aviation and Aerospace Development, Festus Keyamo, for his engagement with industry stakeholders, noting that his efforts have been impactful.
However, CPPE cautioned that while the debt relief offers short-term respite, it does not address the deeper structural issues affecting the aviation sector.
The group highlighted the heavy burden of multiple taxes, fees, and levies imposed by regulatory agencies, including the Nigerian Civil Aviation Authority (NCAA), the Federal Airports Authority of Nigeria (FAAN), and the Nigerian Airspace Management Agency (NAMA).
According to industry estimates cited by CPPE, these charges account for up to 35 percent of airline revenues, a level the organisation described as incompatible with the typically thin margins in the aviation industry.
The think tank stressed that Nigeria’s aviation sector remains critical to economic connectivity, trade facilitation, investment flows, and national integration.
It noted that increasing insecurity on major highways has made air travel a preferred option for many Nigerians, further elevating the sector’s importance.
Despite its strategic role, CPPE observed that the industry continues to face a high airline mortality rate, which it attributed to a challenging operating environment.
The organisation called on the Federal Government to undertake a comprehensive review and rationalisation of aviation charges, describing the current cost structure as excessive and fragmented.
It listed multiple charges – including ticket and cargo sales fees, passenger service charges, landing and parking fees, aircraft inspection costs, and import duties on aircraft and spare parts – as major constraints on airline sustainability.
CPPE argued that reducing both the number and scale of these charges would improve the viability, competitiveness, and resilience of domestic airlines. It also warned that sustained financial pressure on operators could have unintended consequences for safety standards.
“Government support for the aviation sector must go beyond debt relief,” the statement said. “A comprehensive reform of the aviation cost environment is necessary to prevent excessive charges from undermining investment, weakening service quality, increasing ticket prices, and threatening the long-term sustainability of the sector.”
The statement was signed by Dr. Muda Yusuf, Chief Executive Officer of CPPE.
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