CPPE Reacts to FG's Airline Debt Relief, Seeks Aviation Sector Reforms
- The CPPE has welcomed the government’s 30% debt relief for Nigerian airlines
- The group warned that the aviation sector still faces deeper structural challenges
- In a statement to Legit.ng CPPE called for urgent and comprehensive reforms on aviation charges
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Muda Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), has welcomed the federal government’s approval of a 30% discount on outstanding debts owed by Nigerian airlines.
In a statement made available to Legit.ng on Sunday, April 26, 2026, Yusuf described the move as a timely intervention to ease financial pressure on operators in the aviation sector.
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He added that the decision by President Bola Ahmed Tinubu provides short-term relief to airlines struggling with rising and unsustainable operating costs.
Calls for reforms
The renowned economist, however, warned that the debt relief does not address deeper structural challenges undermining the sustainability of the aviation industry in Nigeria.
He explained 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).
Yusu said:
"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.
"The sector continues to face an unsustainable burden of multiple taxes, fees, and levies imposed by various regulatory and service agencies, which collectively distort cost structures, weaken competitiveness, and threaten the long-term viability of domestic carriers"
CPPE makes a demand to the government
He further 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, Yusuf expressed concern over what he described as a persistently high airline mortality rate, attributing the trend largely to a harsh and unsupportive operating environment, Punch reports.
He added:
"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."
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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.
CPPE boss further warned that continued financial pressure on operators could have broader implications for safety, service quality, and long-term sector stability, Leadership reports.
Yusuf stressed:
“A streamlined and moderated cost structure is imperative to enhance the viability and competitiveness of domestic airlines."
Another airline set to begin commercial operation in Nigeria
Earlier, Legit.ng reported that the Nigeria Civil Aviation Authority (NCAA) has officially granted an Air Operator Certificate (AOC) to Enugu Air, clearing 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.
The development will add Enugu Air to the growing list of state-owned carriers operating domestic services.
Source: Legit.ng
