The Federal Government is considering a new arrangement that would allow domestic airlines to settle some of their outstanding debts to aviation agencies by providing flight tickets instead of making direct cash payments.
Under the proposed plan, airlines could allocate tickets to agencies such as the Nigeria Civil Aviation Authority (NCAA), Nigerian Airspace Management Agency (NAMA), and Federal Airports Authority of Nigeria (FAAN) as part of their debt repayment.
A senior official in the Ministry of Aviation and Aerospace Development said the arrangement is being considered as an alternative to stricter debt-recovery measures that could disrupt airline operations.
The proposal followed a presentation of a “national ticket-for-cash aviation revenue recovery programme” to the ministry by QuickAir Networks Ltd, led by aviation technology expert Dr Segun Oyebolu.
Oyebolu explained that the plan would allow airlines to exchange their available flight seats for cash value against existing debts. Under the arrangement, each participating airline would create a digital wallet containing the agreed value of its outstanding debt. The tickets would then be distributed through designated platforms to large travel agencies, corporate organisations and government institutions at discounted rates.
He said the system could help airlines facing serious cash-flow challenges caused by high operating costs, rising Jet A1 fuel prices and foreign exchange pressures.
The proposal also includes an automated system for handling the five per cent Ticket Sales Charge (TSC). Under the plan, five per cent of every online ticket sale would be transferred directly to the designated NCAA account, while the remaining 95 per cent would go to the airline.
Oyebolu, however, warned that the arrangement would only be effective if airlines stopped accumulating new debts.
Implementation of the plan would require the agreement of the Airlines Operators of Nigeria (AON), after which the government could begin with a controlled pilot programme.
Domestic airlines are reportedly owing more than ₦60 billion to aviation agencies and fuel suppliers. Aviation authorities have also raised concerns over unpaid statutory charges, including the TSC.
The debt crisis has contributed to tensions between airlines and aviation labour unions. Unions, including the National Union of Air Transport Employees (NUATE) and the Association of Nigerian Aviation Professionals (ANAP), have previously protested over the non-remittance of ticket sales charges.
NUATE recently alleged that airline operators were withholding about ₦25 billion in ticket sales charges meant for aviation agencies, warning that the situation could affect the sustainability of the aviation industry and workers’ welfare.
Minister of Aviation and Aerospace Development Festus Keyamo also recently disclosed that one domestic airline owes the Federal Government about ₦14 billion. He warned that the growing debts were putting pressure on aviation agencies and affecting their ability to provide essential services.
