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Home Politics

Airline Owes Govt N14bn Despite Debt Relief-Keyamo

by Hajara Abdullahi
August 3, 2026
in Politics
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Airline Owes Govt N14bn Despite Debt Relief-Keyamo

Minister Of Aviation And Aerospace Development, Festus Keyamo. Photo Credit-Google

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The minister stressed that the debts have had direct implications for agencies such as the Nigerian Airspace Management Agency and the Nigeria Civil Aviation Authority, which rely heavily on revenues from airlines to fund their operations.

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2 August 2026

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The Federal Government has raised fresh concerns over the financial health of Nigeria’s aviation sector, disclosing that a domestic airline is owing the government as much as N14bn despite ongoing debt relief measures designed to ease the burden on operators.

The Minister of Aviation and Aerospace Development, Festus Keyamo, revealed the development during a recent interview, warning that the accumulation of debts by airlines is placing significant strain on aviation agencies and limiting their capacity to deliver essential services.

Keyamo explained that while the government has adopted a conciliatory approach by granting concessions and restructuring repayment plans, the level of outstanding liabilities remains alarming.

According to him, even after writing off 30 per cent of debts owed by operators, the balance still runs into billions, with one airline alone accounting for N14bn.

He said the government deliberately avoided aggressive enforcement in recognition of the difficult operating environment confronting domestic carriers, including high operating costs, foreign exchange constraints, and infrastructure challenges.

“Operators are beginning to see the impact of the relief measures. We are not even moving hard on them because we tried to understand the situation,” the minister said.

“But right now, just one of them is owing us N14 billion, and even after removing the 30 per cent relief, the figure remains substantial.”he added.

Debt Has Direct Implications For Agencies-Keyamo

The minister stressed that the debts have had direct implications for agencies such as the Nigerian Airspace Management Agency and the Nigeria Civil Aviation Authority, which rely heavily on revenues from airlines to fund their operations.

He noted that the inability of agencies to generate adequate income due to unpaid charges has affected their statutory responsibilities, including air navigation services, safety oversight, and airport infrastructure maintenance.

Keyamo, however, said the government recently convened a meeting with airline operators, during which they were directed to submit structured repayment plans.

He added that the initiative has already begun to yield results, with several airlines making partial payments.

“In the last three weeks or so, many of them paid about 10 per cent of their debts, and they are beginning to pay the rest gradually,” he said, expressing optimism that the phased repayment arrangement would help stabilise the sector.

Industry stakeholders have long argued that Nigeria’s aviation environment is one of the most challenging globally, citing high fuel costs, multiple taxation, and currency volatility as major pressures on airlines.

However, Keyamo maintained that while the government understands these challenges, operators must also fulfil their financial obligations.

“These services cannot be free,” he said. “The government has invested heavily in building airports, providing navigation services, and ensuring safety. Airlines must contribute their share.”

Minister Addresses Recent Aviation Incident

Beyond financial concerns, the minister also addressed a recent aviation incident involving a foreign-registered private jet, describing it as a serious security breach that is currently under investigation.

The aircraft reportedly landed on a concrete road near the Asaba International Airport instead of the designated runway, triggering widespread concern within the aviation community.

Keyamo clarified that the aircraft had been properly cleared by air traffic controllers to land on the runway but that the pilot ignored the instructions and chose an unauthorised landing site outside the airport perimeter.

“The control tower performed its duties professionally,” he said. “They cleared the aircraft to land, but the pilot did not comply. When controllers realised the aircraft was not on the runway, it became clear that something was wrong.”

The situation escalated further when the crew allegedly departed the scene before accident investigators could conduct a proper inspection, a move the minister described as highly irregular and unacceptable under aviation protocols.

He disclosed that the crew members were later apprehended and are currently in the custody of the Department of State Services, where they are undergoing questioning to determine the circumstances surrounding the incident.

Keyamo also noted that the aircraft is registered in the United States, which allows for operational flexibility under international aviation agreements, including the use of older pilots who may not meet Nigeria’s age restrictions for commercial aviation.

“In Nigeria, commercial pilots cannot fly beyond the age of 65, but under foreign registration, such limitations may differ,” he explained, adding that the investigation would establish whether regulatory breaches occurred.

Meanwhile, tensions are also brewing within the aviation sector over a proposed amendment to the revenue-sharing formula among key agencies.

NCAA Opposes Move To Increase Shared Funds

The Nigeria Civil Aviation Authority has strongly opposed any move to increase the share of funds allocated to the Nigerian Airspace Management Agency, warning that such a decision could undermine safety oversight and regulatory effectiveness.

The Director of Public Affairs and Consumer Protection at the NCAA, Michael Achimugu, said the agency is already operating below the funding levels recommended by the International Civil Aviation Organization.

He cautioned that further reductions in the NCAA’s revenue could jeopardise Nigeria’s ability to meet international safety standards and pass future ICAO audits.

“You cannot fix one agency by weakening another,” Achimugu said. “If you take more funds away from the regulatory body, it will affect our ability to ensure safety and compliance. That is a risk Nigeria cannot afford.”

The proposal under consideration by the National Assembly seeks to review the sharing formula for the five per cent Ticket Sales Charge and Cargo Sales Charge collected from passengers and cargo operators.

Currently, the NCAA receives 56 per cent of the revenue, while NAMA gets 22 per cent, with the remaining portion distributed among other aviation institutions, including the Nigerian Meteorological Agency, the Nigerian College of Aviation Technology, and the Nigerian Safety Investigation Bureau.

The ongoing debates highlight deeper structural issues within Nigeria’s aviation sector, particularly around funding, regulation, and sustainability.

As the government continues efforts to balance support for struggling airlines with the need to maintain efficient and safe aviation services, industry players are calling for comprehensive reforms to address longstanding challenges.

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Hajara Abdullahi

Hajara Abdullahi

Hajara Abdullahi is a News Reporter at Morganable, with primary responsibility for politics and general news coverage. She reports on political developments, governance, public institutions, elections, public policy and major events affecting Nigeria and the wider African region. Her work focuses on delivering clear, factual and accessible reporting that helps readers understand the people, decisions and institutions shaping public life. Through timely news coverage and careful attention to context, Hajara contributes to Morganable’s commitment to informed, responsible and public-interest journalism.

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