Domestic airlines in Nigeria are on the brink of a potential shutdown as operators warn they may suspend flights from Thursday, April 30, 2026, due to skyrocketing aviation fuel costs.
Industry sources indicate that despite ongoing engagements with the Federal Government and fuel marketers, no concrete resolution has been reached, leaving airlines with limited options. The situation has heightened concerns of widespread disruption for passengers who depend on domestic flights for business and urgent travel.
At the centre of the crisis is the dramatic rise in the price of Jet A1 fuel, which operators say has surged by more than 300 per cent compared to levels recorded in February. The spike has significantly strained airline operations, with many now struggling to remain viable.
In response to the growing tension, Minister of Aviation and Aerospace Development, Festus Keyamo, convened a high-level meeting in Abuja involving airline operators and fuel marketers. However, the talks reportedly ended in a deadlock, as stakeholders failed to reach a consensus on how to address the crisis.
Following the two-day meeting, the minister announced a 30 per cent reduction in aviation-related taxes in a bid to ease the financial burden on airlines. While operators acknowledged the move, they argue it does not address the fundamental issue of fuel pricing.
Vice President of the Airline Operators of Nigeria, Allen Onyema, welcomed government efforts but insisted that fuel marketers must justify the sharp increase in prices. He noted that even suppliers are surprised by the scale of the hike.
Onyema revealed that the price of Jet A1 has risen from about ₦900 per litre to between ₦2,700 and ₦2,900, with some marketers reportedly selling as high as ₦3,500 per litre. According to him, airlines are now operating primarily to cover fuel expenses, leaving little room for profit or sustainability.
He warned that unless urgent action is taken, airlines may be forced to ground operations entirely. The Airline Operators of Nigeria had earlier issued a seven-day ultimatum, stressing that continued operations under current conditions are unsustainable.
Operators have also dismissed claims of indebtedness, maintaining that they are up to date with payments to key aviation agencies such as the Federal Airports Authority of Nigeria and the Nigerian Airspace Management Agency.
In a formal communication dated April 21, signed by AON President Abdulmunaf Sarina, the group proposed additional relief measures to cushion the impact of rising costs. These include a six-month suspension of aviation taxes and charges, the introduction of a non-taxable fuel surcharge, and the issuance of credit notes by fuel marketers to offset what they describe as arbitrary price increases.
They also called for the establishment of an industry tax reform committee to review existing levies and align them with global best practices.
As the deadline approaches, uncertainty continues to cloud Nigeria’s aviation sector. Industry insiders warn that if no decisive intervention is made, the country could witness a near-total halt of domestic flight operations, with far-reaching economic and social consequences.
