Airlines threaten nationwide shutdown over soaring jet fuel prices

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Allen Onyema: Aviation Fuel Price Increment Is Counter-productive

  • Nigerian airlines may suspend operations from April 30 over rising Jet A1 costs.
  • Fuel prices surge by over 300%, pushing operators to the brink.
  • Talks between government, airlines, and marketers end in deadlock.

Main story

Domestic airlines in Nigeria are considering a nationwide shutdown of operations from Thursday, April 30, 2026, as escalating aviation fuel prices threaten the sustainability of the sector.

Industry sources indicate that operators, under the umbrella of the Airline Operators of Nigeria, may be forced to ground flights after failed negotiations with the Federal Government and fuel marketers.

The crisis follows a sharp increase in the price of Jet A1 fuel, which has reportedly surged by more than 300 per cent since February. The spike has driven operating costs to critical levels, raising concerns over the viability of continued flight operations.

In response, the Minister of Aviation and Aerospace Development, Festus Keyamo, convened a high-level meeting in Abuja involving airline operators and fuel marketers. However, the talks ended without a resolution, despite the government’s announcement of a 30 per cent reduction in aviation-related taxes.

Operators acknowledged the gesture but insisted it does not address the core issue of fuel pricing.

The issues

The aviation sector is grappling with rising operational costs driven largely by volatile fuel prices, which now account for the bulk of airline expenses. The situation has exposed structural vulnerabilities in Nigeria’s aviation value chain, particularly the sector’s dependence on market-driven fuel pricing.

What’s being said

Vice President of the Airline Operators of Nigeria, Allen Onyema, described the situation as unsustainable, urging fuel marketers to justify the steep increase in prices.

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“Before the crisis, we were buying fuel at about N900 per litre. Now it has risen to between N2,700 and N2,900, with some selling as high as N3,500,” Onyema said.

He warned that airlines are now operating largely to offset fuel costs, raising concerns about long-term sustainability and safety.

In a formal communication to the government, AON President Abdulmunaf Sarina called for urgent intervention, including a temporary suspension of aviation taxes and the introduction of a non-taxable fuel surcharge.

Operators also proposed the issuance of credit notes by marketers and the establishment of a tax reform committee to review industry charges in line with global standards.

What’s next

Airlines have issued a seven-day ultimatum, warning that failure to address the crisis could result in a complete shutdown of domestic flights. Stakeholders are expected to continue engagements in a bid to avert disruptions that could impact business travel and economic activity nationwide.

Bottom line

With fuel costs spiralling and negotiations stalled, Nigeria’s aviation sector faces a critical moment, as the threat of a nationwide airline shutdown underscores the urgent need for sustainable solutions.

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