Nigerian Aviation Ministry Vows to Tackle Forex Shortage for Airlines

The Federal Ministry of Aviation in Nigeria has pledged to collaborate with the Central Bank of Nigeria (CBN) to address the forex shortage faced by airlines. The ministry aims to provide foreign exchange at low-interest rates ranging from 1.5% to 2%, aiming to bolster the financial stability of the airline industry, as reported by Business Post.

Additionally, the federal government plans to enforce regulations set by the Nigeria Civil Aviation Authority (NCAA), requiring domestic airlines to compensate passengers for frequent flight delays and cancellations. This initiative aligns with the government’s efforts to bring the sector in line with international standards and enhance consumer protection.

The commitment to address forex scarcity was highlighted during a meeting on October 9 in Abuja between Aviation Minister Festus Keyamo and the Airline Operators of Nigeria (AON). The discussions primarily focused on challenges related to flight disruptions. Minister Keyamo expressed the government’s determination to tackle forex scarcity, with AON members urging the establishment of a dedicated support line for domestic airlines to access foreign exchange through the CBN.

TopBrass Aviation CEO Roland Iyayi emphasized the urgent need for government intervention to ensure an adequate supply of jet fuel. He called for the liberalization, procurement, and distribution of Jet A1 nationwide, urging the government to allow AON to secure a license for product importation and distribution. Iyayi also stressed the necessity of reviewing air taxes and charges to align them with a cost recovery model.

On a separate note, Air Peace CEO Allen Onyema raised concerns about the 5th freedom rights granted to foreign airlines, underscoring the complex regulatory landscape within the aviation sector.

As the government and industry stakeholders collaborate to address these challenges, the outcomes will significantly impact the operational landscape for Nigerian airlines, influencing their financial stability and overall competitiveness.