By By Elizabeth Ugbo
The Airline Operators of Nigeria threatened to shut down flights nationwide from April 20, 2026, due to soaring Jet A1 prices. However, the group suspended the action after intervention by Aviation Minister Festus Keyamo. The Federal Government, led by President Bola Tinubu, is now proposing relief measures. These include debt waivers and policy reforms aimed at stabilizing the aviation sector.
Jet A1 Price Surge Triggers Crisis
Airlines raised alarm over the sharp increase in aviation fuel costs. Jet A1 prices jumped from ₦900 per litre in February to over ₦3,300 within weeks.
This represents more than a 300% increase. Operators described the spike as unsustainable for business survival.
As a result, airlines warned that revenue could no longer cover fuel costs. They considered suspending operations to avoid compromising safety standards.
Airlines Cite Safety and Financial Strain
Chairman of Air Peace, Allen Onyema, said airlines faced severe financial pressure.
He explained that operators chose to halt flights rather than cut corners on safety. According to him, airlines struggled to balance fuel costs and maintenance needs.
Onyema also questioned the pricing structure. He argued that Jet A1 prices in Nigeria rose disproportionately compared to global crude oil trends.
Marketers Under Scrutiny
Onyema called for accountability among fuel marketers. He noted that even Aliko Dangote reportedly expressed surprise at the price surge.
He stressed that Dangote’s fuel remains among the cheapest available. Therefore, he questioned why prices rose sharply despite local supply.
Government Steps In With Relief Measures
In response, Keyamo announced several government interventions. First, the Federal Government plans to grant discounts on airline debts.
These debts involve agencies such as FAAN, NCAA, and NAMA. The exact discount rates will be determined by the President.
Additionally, the government will review taxes and levies on domestic tickets. A committee will soon address these charges and recommend reductions.
Plans for Broader Aviation Reforms
The Minister also revealed plans for further engagement. Airline operators will meet directly with the President to discuss long-term solutions.
These discussions will focus on access to affordable financing. Nigerian airlines currently face interest rates between 30% and 35%, compared to 3% globally.
Lower financing costs could improve sustainability across the sector.
Shutdown Suspended Amid Ongoing Talks
Following government intervention, airlines suspended their planned shutdown. Operators expressed optimism about ongoing negotiations.
They also commended the government’s responsiveness. Earlier, authorities removed the 4% FOB charge within 24 hours.
For now, flights will continue as discussions progress.
