Nigerian airlines, on Wednesday, demanded a total cancellation of debts owed to aviation agencies, warning that a 300% spike in jet fuel prices has pushed domestic carriers to the brink of shutdown.

The ultimatum came during an emergency meeting convened by Aviation and Aerospace Development Minister Festus Keyamo, as operators threatened to ground all flights nationwide.

Speaking for the Airline Operators of Nigeria (AON), Air Peace Chairman and AON Vice President Dr Allen Onyema, said carriers are “bleeding” and can no longer borrow to buy fuel while skipping safety-critical obligations like maintenance.

“The threat to suspend operations was not a bargaining tactic. We have reached a breaking point where flying becomes unsafe and unsustainable,” Onyema told the Minister, government officials, and industry stakeholders.

He said Jet A1 prices have jumped by roughly 300%, far outpacing global crude oil movements, leaving airlines with losses on nearly every flight.

To avert a total collapse, AON demanded “a total waiver of all debts” owed to the Nigerian Airspace Management Agency (NAMA), Federal Airports Authority of Nigeria (FAAN), and the Nigerian Civil Aviation Authority (NCAA).

Keyamo confirmed the Federal Government intervened swiftly to stop a shutdown, saying he briefed President Bola Tinubu before the meeting and secured presidential backing for immediate action.

He disclosed that the President has directed airlines to submit formal requests for debt relief urgently, noting that while the final call on concessions rests with Tinubu, a “generous discount” on agency debts is already under consideration.

However, operators pushed back, insisting that anything short of a full waiver would fail to stabilize the sector.

Keyamo also revealed that Tinubu had approved a Committee to review multiple taxes, levies, and charges on domestic tickets, aiming to cut costs for both airlines and passengers.

Onyema further pressed for financing reforms, noting that interest rates above 30% in Nigeria were crippling airlines when global competitors borrow at single digits.

On fuel pricing, Permanent Secretary, Ministry of Petroleum Resources (Oil), Mrs. Patience Oyekunle, said talks with marketers would continue, pointing out that a follow-up meeting was scheduled to probe the steep Jet A1 hike.