Nigerian airlines have accumulated more than N60bn in loans from local banks to finance the purchase of aviation fuel amid persistently high Jet A1 (fuel) costs, the Airline Operators of Nigeria has said.
A member of the Board of Trustees of the AON, Roland Iyayi, disclosed this to Sunday PUNCH, saying the airlines were being forced to borrow heavily to sustain operations as the cost of aviation fuel continued to put pressure on their revenues.
“There are some airlines that are owing over N60bn from local banks just to be able to procure fuel. That’s how bad it is,” Iyayi stated.
He said the worsening financial burden was a consequence of the government’s failure to implement measures recommended by stakeholders to address the high cost of aviation fuel.
According to him, the AON had threatened to shut down operations in February following the escalation in fuel prices, prompting the Minister of Aviation and Aerospace Development, Festus Keyamo, to intervene.
