The Federal Ministry of Aviation in Nigeria has promised to work with the Central Bank of Nigeria (CBN) to provide foreign exchange to airlines at low interest rates of 1.5% to 2% to support the airline industry and improve its financial stability, reports Business Post.
The federal government also plans to enforce Nigeria Civil Aviation Authority (NCAA) regulations that require domestic airlines to compensate passengers for frequent flight delays and cancellations. The move is part of its efforts to align the sector with international standards and provide greater consumer protection.
This emerged during a meeting in Abuja on October 9 between Aviation Minister Festus Keyamo and the Airline Operators of Nigeria (AON), called to discuss flight disruption challenges. The minister said the government planned to address foreign exchange scarcity, while AON members urged the government to provide a dedicated support line for domestic airlines to access foreign exchange through the CBN.
The cable reports that TopBrass Aviation (BRL, Lagos) CEO Roland Iyayi called for urgent government intervention to secure adequate jet fuel supply. "There is an urgent need to facilitate the liberalisation, procurement, and distribution of Jet A1 nationwide and allow AON to procure a requisite license for product importation and distribution," he said. "There should be an immediate review of all air taxes and charges to determine applicability in line with the cost recovery model," he said.
Meanwhile, Air Peace (P4, Lagos) CEO Allen Onyema complained about 5th freedom rights granted to foreign airlines.
