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Airlines Threaten Nationwide Shutdown Over Fuel Price Crisis

Domestic airlines in Nigeria may suspend operations from Thursday over surging aviation fuel costs, raising fears of widespread travel disruptions across the country, industry officials said.

Operators say the price of Jet A1 fuel has risen by more than 300% since February, pushing operating costs to unsustainable levels despite ongoing engagements with the government and fuel marketers.

The potential shutdown follows a meeting convened last week in Abuja by the minister of aviation and aerospace development, Festus Keyamo, involving airline operators and fuel suppliers. Talks ended without a breakthrough, according to industry sources.

Keyamo announced a 30% reduction in aviation-related taxes after the meeting, but airline operators say the measure does not address the core issue of rising fuel prices.

Allen Onyema, vice president of the Airline Operators of Nigeria said airlines are struggling to cope with the cost increases and warned that operations could halt if urgent action is not taken.

“Fuel prices have risen from about 900 naira per litre to between 2,700 and 2,900 naira, with some as high as 3,500 naira,” Onyema said, adding that many airlines are operating primarily to cover fuel expenses.

He attributed part of the increase to global factors, including tensions linked to the U.S.-Iran situation, but said local pricing appears disproportionate.

Airline operators have given authorities a seven-day ultimatum, warning that flights could be grounded if fuel prices are not reduced or made more sustainable.

In a letter dated April 21, the Airline Operators of Nigeria led by President Abdulmunaf Sarina, called for additional relief measures, including a temporary suspension of aviation taxes and charges for at least six months.

The group also proposed introducing a non-taxable fuel surcharge, directing marketers to issue credit notes to affected airlines and setting up a committee to review industry charges.

Airline officials said they are up to date on payments to key aviation agencies, including the Federal Airports Authority of Nigeria and the Nigerian Airspace Management Agency.

As the deadline approaches, uncertainty is mounting in Nigeria’s aviation sector, with passengers who rely on domestic travel for business and emergencies facing possible disruption.

“If nothing is done, no airline will be flying by Thursday,” a senior airline executive said on condition of anonymity because he was not authorized to speak publicly.

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