Nigeria’s aviation industry is facing fresh turbulence as the soaring cost of JetA1 fuel pushes domestic airlines to the brink of operational collapse. Airline operators have warned that flights across the country could be suspended from Thursday, 30 April, if urgent intervention fails to address the worsening crisis.
The industry’s growing concerns follow unsuccessful negotiations between airline operators, fuel marketers, and government officials. Despite recent efforts by the Federal Government to ease financial pressure on airlines, operators insist that the current measures do not solve the core problem driving the crisis.
JetA1 prices have climbed sharply since February, recording increases of more than 300 per cent. The rise has placed enormous pressure on airline finances, making daily operations increasingly unsustainable for many carriers.
Passengers are already feeling the effects of the uncertainty. Across major airports, travellers are adjusting schedules and reconsidering travel plans amid fears of flight disruptions and cancellations.
Last week, the Minister of Aviation and Aerospace Development, Festus Keyamo, held a meeting with airline operators and fuel marketers in an attempt to resolve the dispute. However, the discussions ended without a breakthrough.
Following the meeting, the Federal Government announced a 30 per cent reduction in aviation-related taxes and statutory debts owed by airlines to aviation agencies. President Bola Tinubu approved the measure as part of efforts to reduce operational pressure on domestic carriers.
Keyamo described the move as a major intervention aimed at stabilising the aviation sector and supporting struggling airlines.
Airline operators welcomed the government’s support but maintained that the main issue remains the cost of aviation fuel. According to industry leaders, tax relief alone cannot offset the extreme increase in operating expenses caused by fuel prices.
Vice President of the Airline Operators of Nigeria, Allen Onyema, criticised the sharp rise in JetA1 prices and questioned the pricing structure adopted by fuel marketers.
He argued that the increase in Nigeria does not reflect global market realities, especially when compared with international fuel price movements. Onyema also noted that local operators continue to purchase fuel at rates far above previous levels, despite claims that fuel supplied from the Dangote Refinery remains among the cheapest available.
According to airline operators, fuel that previously sold for around N900 per litre now costs between N2,700 and N3,500, depending on the supplier. The increase has severely reduced profit margins and left many airlines struggling to remain operational.
Operators warned that continued operations under the current conditions could become impossible within days if fuel prices remain unchanged.
Industry stakeholders have proposed several measures to prevent a shutdown. These include a six-month suspension of aviation taxes, the introduction of a non-taxable fuel surcharge, and the establishment of a tax reform committee to review multiple charges affecting the sector.
Airlines also requested that oil marketers issue credit notes to operators affected by what they described as arbitrary fuel price increases.
At the same time, another challenge is emerging within the aviation sector. Ground handling companies, under the umbrella of the Aviation Ground Handlers Association of Nigeria, have threatened to withdraw services over unpaid debts exceeding N9bn.
The companies stated that repeated efforts to recover outstanding payments from airlines have produced little progress. Although the initial ultimatum expired earlier this week, the association has reportedly extended the deadline by an additional three days.
Ground handling firms provide critical airport services, including baggage processing and aircraft marshalling. Any suspension of these services would disrupt airport operations nationwide and deepen the crisis already facing the aviation industry.
Despite the mounting tension, stakeholders are still hoping that ongoing discussions between government officials, airlines, and fuel marketers will produce a last-minute agreement capable of preventing a nationwide disruption of flight operations.
