Nigerian Airlines Threaten Shutdown Over Soaring Fuel Costs

The Nigerian aviation sector is teetering on the brink of collapse as domestic airlines signal a potential shutdown from Thursday, April 30, 2026. This drastic measure stems from what operators describe as unbearable and unsustainable aviation fuel prices, a crisis that threatens widespread travel disruption across the nation. The situation has escalated after numerous engagements with both the Federal Government and oil marketers failed to yield a breakthrough, leaving airlines with little choice but to ground their fleets.

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This government has helped the industry more than anyone since 1999, and the President is even willing to waive 30 per cent of the debts airlines are owing.

The core of the problem lies in the staggering 300% increase in Jet A1 fuel prices compared to February levels. This astronomical rise has pushed operating costs to an untenable point, forcing airlines to consider ceasing operations. Passengers, who rely heavily on domestic flights for business and urgent travel, now face immense uncertainty as the looming shutdown casts a shadow over their plans.

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But the truth is that the marketers must be brought to book to explain how they came about the 300 per cent increase when even Dangote is surprised because what he is selling to us is still the cheapest.

In a bid to avert this crisis, the Minister of Aviation and Aerospace Development, Festus Keyamo, convened a meeting with airline operators and fuel marketers. While a 30% reduction in aviation-related taxes was announced as a measure to alleviate the burden, industry insiders argue that this gesture, though acknowledged, falls far short of addressing the fundamental issue. The Airline Operators of Nigeria, represented by Vice President Allen Onyema, have stressed the need for fuel marketers to be held accountable for the price surge.

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We expect that in the next 48 hours something drastic should be done because no airline will fly in this country in the next seven days if nothing is done, not because they don’t want to fly, but because fuel may not be available to us at sustainable pricing.

Onyema pointed out that while the current administration has been supportive, the marketers must explain the basis for the 300% increase, especially when even the Dangote refinery's pricing is noted as being more competitive. He issued a stark warning: if no drastic action is taken within the next seven days from last Thursday midnight, no airline will fly. The airlines are not unwilling to fly, but the unavailability of fuel at sustainable prices makes it impossible. The current prices have reportedly skyrocketed from around N900 per liter to between N2,700 and N2,900, with some marketers charging as high as N3,500, a situation that is simply not viable for the industry's survival.

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