Evaluating Debt Management Practices and Their Impact on the Stability of Nigeria's Domestic Airlines

The financial stability of Nigeria’s domestic airline industry remains a pressing concern due to the persistent challenges associated with debt management. This study examines debt management strategies in domestic airlines throughout Nigeria with specific attention to Kano State to determine their effect on airline stability. The research investigates vital debt management approaches while it studies debt financing structure impacts on operational sustainability together with major financial hurdles and introduces strategic frameworks for better financial resilience. This research employs a conceptual methodology by using information from aviation finance and debt management literature combined with industry reports as well as empirical evidence. External debt financing consumes the financial structure of numerous domestic airlines in Nigeria which produces severe interest expense while reducing operational efficiency and creating liquidity constraints. Debt financing without proper structure causes consistent cash problems and flight delays and networking problems that destroy sustainability in the long term. Access to low-cost credit and unstable exchange rates and expensive aviation fuel supplements and irregular governmental guidelines form critical financial barriers that decrease profitability in the airline industry. Research results indicate that airlines should compile debt repayment schedules and enhance their debt-equity balance and expand financing into long-term credit programs and aircraft leases with aviation bond opportunities. Domestic airlines need a stable financial environment which requires government intervention by providing favorable lending terms together with tax relief programs and strengthened regulatory frameworks. A directed debt management system consisting of sound financial guidelines and stable regulatory regimes alongside international funding opportunities aims to increase aviation sector financial stability.