Domestic airlines in Nigeria are on the brink of suspending operations from Thursday, April 30, 2026, as operators grapple with what they describe as crippling and unsustainable aviation fuel costs.
Industry sources indicate that despite ongoing engagements with the federal government and oil marketers, no resolution has been reached, leaving airlines with the difficult option of grounding flights nationwide.
The looming shutdown follows persistent complaints over the sharp increase in the price of Jet A1 fuel, which has surged by more than 300 per cent since February.
The spike has significantly inflated operational costs, pushing many carriers to the edge of viability.
Passengers who depend on domestic flights for business and urgent travel now face uncertainty, with potential disruptions expected across major routes if the standoff remains unresolved.
In an effort to avert the crisis, the Minister of Aviation and Aerospace Development, Festus Keyamo, convened a high-level meeting in Abuja last week involving airline operators and fuel marketers.
However, the talks ended without a breakthrough, as stakeholders failed to agree on concrete measures to address the fuel pricing crisis.
Following the two-day meeting, the minister announced a 30 per cent reduction in aviation-related taxes to ease the financial burden on operators.
While airlines acknowledged the move, they insist it does not tackle the core issue of soaring fuel prices.
Vice President of the Airline Operators of Nigeria, Allen Onyema, commended the government’s efforts but maintained that oil marketers must justify the drastic increase in fuel costs.
He noted that although the government has demonstrated willingness to support the aviation sector, including offering to waive 30 per cent of airlines’ debts, the unexplained surge in fuel prices remains a major concern.
Onyema further issued a seven-day ultimatum, warning that airlines may be forced to halt operations if urgent action is not taken.
He attributed the recent spike partly to global tensions, including the US-Iran conflict, but argued that the increase in Nigeria appears disproportionate compared to international trends.
Providing insight into the financial strain, Onyema revealed that Jet A1 prices have risen from about N900 per litre before the crisis to between N2,700 and N2,900, with some marketers charging as high as N3,500 per litre.
He stressed that airlines are currently operating under severe pressure, with revenues largely going toward fuel costs, leaving little margin for other operational needs while maintaining safety standards.
Despite concerns about possible indebtedness, senior airline officials, speaking anonymously due to the sensitivity of the issue, insisted that operators remain up to date with payments to key aviation agencies, including the Federal Airports Authority of Nigeria and the Nigerian Airspace Management Agency.
Further findings show that the Airline Operators of Nigeria (AON), led by its president, Abdulmunaf Sarina, has formally requested additional relief measures from the government.
In a letter dated April 21, the group called for the immediate suspension of aviation taxes, fees, and charges for at least six months.
The operators warned that the unprecedented rise in fuel costs threatens not only airline operations but also jobs and the broader stability of Nigeria’s aviation industry.
Among other proposals, the AON advocated the introduction of a non-taxable fuel surcharge to help airlines manage rising costs, a practice common in international aviation.
The group also urged authorities to direct oil marketers to issue credit notes to airlines affected by what they described as arbitrary price increases.
Additionally, the operators proposed the establishment of an industry tax reform committee to review existing charges and align them with global best practices.
As the Thursday deadline approaches, uncertainty continues to cloud Nigeria’s aviation sector.
Another senior airline executive warned that the threat of a shutdown remains imminent if decisive intervention is not made.
