Indications have emerged that the Federal Government is considering a new seat-for-debt arrangement to address outstanding debts owed by domestic airlines to aviation agencies.
A senior source in the Ministry of Aviation and Aerospace Development disclosed that under the proposed framework, airlines could allocate tickets in place of cash payments to aviation agencies, including Nigeria Civil Aviation Authority, NCAA, Nigerian Airspace Management Agency, NAMA and Federal Airports Authority of Nigeria, FAAN, towards settling their debt obligations.
It is expected that the arrangement would provide the government with a continuous debt-recovery mechanism while allowing airlines to preserve cash for critical operations.
The source noted that the proposal is being considered as an alternative to aggressive enforcement measures that could disrupt airline services.
Further consultations are expected to determine the participating airlines, eligible debts, allocation arrangements and the possibility of commencing with a controlled pilot programme.
The consideration of the seat-for-debt plan
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