Airlines in Nigeria are facing rising operational pressures as the price of aviation fuel continues its upward trajectory. Jet A1 fuel is currently selling for N1,835 per litre in Kano, N1,820 in Abuja, N1,815 in Port Harcourt, and N1,780 in Lagos.
Industry experts warn that the steep fuel costs are likely to push airfares higher, potentially affecting passenger traffic, particularly for leisure travel.
Prof. Obiora Okonkwo, spokesman for the Airline Operators of Nigeria (AON), said the increase in fuel prices could prompt a review of airfares after approval by the Nigeria Civil Aviation Authority (NCAA).
“Before the war, aviation fuel in Nigeria cost about N1,000 per litre. As of this evening, the last fuel we bought was going for around N1,800. We are still navigating how to respond within regulatory frameworks,” Okonkwo told Arise TV.
He explained that airlines are required to submit their inventory to the NCAA at least two weeks before implementing any price adjustments. Okonkwo also noted that the timing worsens the challenge, as passenger loads are generally lower after the holiday season, with some flights operating at 40 to 60 per cent capacity.
“The increase is astronomical but inevitable given the global situation. Aviation is highly sensitive, and any geopolitical event - like the conflict in Iran - immediately impacts fuel prices worldwide,” he added.
Aviation analyst Capt. Samuel Caulcrick attributed the surge in Jet A1 prices to Nigeria’s reliance on the dollar for petroleum transactions, despite domestic fuel production.
“If not for the dollar, Jet A1 would be around N900 per litre,” Caulcrick said. He explained that both suppliers and refiners, including the Dangote Refinery, must convert naira proceeds into dollars to purchase crude oil at international rates. “Even locally produced crude is sold in dollars. Without access to dollars, operators risk going out of business.”
He added that the Federal Government, through the Central Bank of Nigeria (CBN), has intervened to limit naira depreciation. “Without intervention, the naira could have fallen to N1,000 to the dollar, which would have sent aviation fuel prices even higher,” Caulcrick said.
The analyst noted that higher fuel costs would inevitably translate into more expensive airfares. “Business travellers may be less affected, but leisure travellers will feel the impact. Lower affordability could reduce seat occupancy and put additional pressure on airline revenues,” he said.
Caulcrick urged the CBN to take steps to stabilise the naira, stressing that a stronger currency would lower the dollar cost in the market and, by extension, reduce aviation fuel prices.
With the ongoing surge in Jet A1 costs, airlines are expected to review their ticket prices soon, signalling potentially higher travel costs for passengers across the country.
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