Nigeria’s aviation industry is facing a potential shutdown, with domestic airlines warning they may suspend operations nationwide from Thursday, April 30, 2026, over surging aviation fuel costs that operators say are no longer sustainable.
The crisis, driven by a sharp spike in the price of Jet A1 fuel, has intensified in recent weeks, with costs reportedly rising by more than 300 per cent since February. Industry stakeholders say the situation has placed enormous pressure on airlines, forcing them to operate at the edge of viability.
Sources within the sector confirmed that negotiations between airline operators, government officials, and fuel marketers have failed to produce a workable solution, heightening the risk of a complete halt in flight operations.
Last week, the Minister of Aviation and Aerospace Development, Festus Keyamo, convened a meeting in Abuja in a bid to resolve the impasse. While the government offered a 30 per cent reduction in aviation-related taxes, operators insist the move does little to address the core issue of escalating fuel prices.
Vice President of the Airline Operators of Nigeria (AON), Allen Onyema, said the current pricing regime is unsustainable and called for greater accountability from fuel suppliers.
“This government has supported the aviation industry significantly,” Onyema said. “But the increase in fuel prices is difficult to justify, and marketers need to explain how we got here.”
According to him, aviation fuel prices have surged from about N900 per litre to between N2,700 and N2,900, with some marketers selling at rates as high as N3,500 per litre.
He warned that airlines are now operating primarily to meet fuel expenses, leaving little room for profit or reinvestment. “At this point, airlines are flying just to pay for fuel, and that is not sustainable,” he said.
Operators have issued a seven-day notice for decisive action, warning that failure to address the crisis will result in a nationwide suspension of flights. Onyema noted that while global developments, including tensions involving the United States and Iran, may have influenced oil prices, the scale of increase in Nigeria appears excessive.
In a formal appeal dated April 21, AON President Abdulmunaf Sarina urged the Federal Government to implement emergency measures, including a six-month suspension of aviation taxes and charges.
The group also proposed the introduction of a non-taxable fuel surcharge to help airlines cope with rising costs, as well as the issuance of credit notes by fuel marketers to cushion the impact of sudden price increases. Additionally, they recommended the establishment of a tax reform committee to review and streamline industry levies.
Airline executives, however, dismissed suggestions that the crisis is linked to unpaid obligations, insisting that operators remain compliant with payments to key agencies such as the Federal Airports Authority of Nigeria and the Nigerian Airspace Management Agency.
With the Thursday deadline looming, uncertainty continues to grow. A senior airline official, who spoke on condition of anonymity, warned that the shutdown threat is not a negotiating tactic but a real possibility.
“If nothing changes, flights will stop,” the official said.
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