For domestic airlines in Nigeria, the sharp rise in aviation fuel prices has pushed operations to the brink, forcing difficult choices between sustaining flights and maintaining safety standards.
Against this backdrop, President Bola Tinubu has intervened, with the Federal Government considering debt relief and broader reforms to ease the burden on operators and prevent a potential shutdown of services.
The Federal Government has announced plans to waive debts owed by domestic airlines to aviation agencies as part of measures to cushion the impact of the ongoing Jet A1 fuel crisis.
Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this during a high-level meeting in Abuja on Wednesday, convened to address the astronomical rise in the cost of Jet A1 fuel.
Keyamo said he had briefed the President after the meeting, adding that one of the immediate measures under consideration is a discount on debts owed by airlines to aviation agencies, including NAMA, FAAN and NCAA. He noted that the level of relief would be determined by the President.
He added that the President would also consider broader reforms, including the establishment of a committee to review taxes, levies and charges on domestic tickets, with a view to reducing the burden on both operators and passengers.
Speaking at the meeting, Chairman of Air Peace, Allen Onyema, attributed the crisis in the aviation sector to the sharp increase in the price of Jet A1 fuel.
Onyema said the rise in fuel costs in Nigeria had been disproportionate compared to global crude oil trends, warning that airlines are under severe financial strain. He noted that operators had considered shutting down services due to escalating costs but stepped back following government intervention.
He also called for stronger regulatory oversight of fuel pricing, a total waiver of airline debts, and improved access to low-interest financing through institutions such as the Bank of Industry.
Onyema added that high borrowing costs in Nigeria—ranging between 30 and 35 per cent—continue to weigh heavily on airline operations, compared to single-digit rates in other parts of the world.
Airline Operators of Nigeria had earlier threatened to shut down operations nationwide from April 20, 2026, over the soaring cost of Jet A1 fuel. The operators said the price of aviation fuel surged from about N900 per litre in late February to over N3,300 per litre within weeks, representing an increase of more than 300 per cent.
They warned that if urgent intervention was not made, revenues would no longer cover fuel costs, raising concerns over flight disruptions and wider economic implications. However, the planned shutdown was later suspended following appeals by the minister, pending the outcome of discussions to address the crisis.
