Nigeria’s domestic aviation industry is on the brink of disruption as airlines warn they may halt operations starting Thursday, April 30, 2026, over the soaring cost of aviation fuel.
Operators say ongoing negotiations with the Federal Government and fuel suppliers have failed to produce a workable solution, leaving many carriers with little choice but to consider grounding their fleets if conditions do not improve quickly.
At the center of the crisis is the dramatic spike in the price of Jet A1 fuel.
Industry figures indicate that costs have more than tripled since February, placing severe financial pressure on airlines already operating on tight margins.
Uncertainty For Travelers
The surge has made it increasingly difficult for operators to sustain flights without incurring heavy losses.
The looming shutdown has created uncertainty for travelers across the country, particularly business passengers and those relying on domestic flights for urgent trips.
Airlines have cautioned that services could be suspended if fuel prices remain at current levels.
Efforts to resolve the situation intensified last week in Abuja, where the Minister of Aviation and Aerospace Development, Festus Keyamo, met with airline executives and fuel marketers.
Despite the high-level talks, no agreement was reached, as operators insisted that more decisive action is needed to address the fuel price crisis.
Following the meeting, the government introduced a 30 percent reduction in aviation-related taxes in a bid to ease the burden on airlines.
While the move was acknowledged by operators, they stressed that it falls short of tackling the core issue of escalating fuel costs.
Industry stakeholders say the rapid price increase has been difficult to justify.
Allen Onyema, Vice President of the Airline Operators of Nigeria, noted that carriers are struggling to stay afloat and called on fuel suppliers to explain the sharp rise.
He emphasised that even with some government relief, current conditions are unsustainable for continued operations.
According to operators, aviation fuel prices have jumped from about ₦900 per litre before the crisis to between ₦2,700 and ₦2,900, with some suppliers reportedly charging as high as ₦3,500 per litre.
Fuel Palava
As a result, airlines are now spending a significant portion of their revenue on fuel, while still maintaining strict safety standards.
Airlines have also dismissed claims of outstanding debts to key aviation agencies, stating that payments to institutions such as the Federal Airports Authority of Nigeria and the Nigerian Airspace Management Agency are up to date.
In a letter dated April 21 and signed by Abdulmunaf Sarina, the airline operators urged the government to implement additional support measures.
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Their proposals include a temporary suspension of aviation taxes and charges for six months, as well as approval for a non-taxable fuel surcharge.
They also called for compensation from fuel suppliers for the impact of the price hikes and recommended the establishment of a review committee to reassess aviation taxes and bring them in line with international standards.