By Wellington Jopelo
Nigeria’s aviation sector is under growing pressure as soaring jet fuel prices continue to threaten airline operations, forcing the Federal Government to step in with emergency measures to stabilise the situation.
Fresh moves by the government include pushing for a 30-day credit window for airline operators and encouraging direct fuel supply arrangements to ease the financial burden on carriers already struggling with rising costs.
The intervention followed a series of high-level meetings involving regulators, aviation agencies, fuel marketers, and airline operators, all aimed at preventing a potential breakdown in flight operations across the country.
Stakeholders at the meeting agreed on a new pricing range for aviation fuel, with estimates placing Jet A1 between about N1,760 and N1,988 per litre in Lagos, and slightly higher in Abuja. However, there are concerns that prices may continue to rise due to global oil market instability.
The ongoing tension linked to the U.S.-Iran conflict has been identified as a key factor driving volatility in crude oil prices, which directly impacts the cost of aviation fuel in Nigeria’s deregulated market.
To address supply chain inefficiencies, regulators are also considering reducing the number of fuel distributors operating within airport areas, limiting access to only companies with verified capacity and infrastructure.
Another major concern is the growing debt between airlines and fuel suppliers. Authorities have now moved to facilitate discussions between both sides in a bid to resolve outstanding payments and prevent service disruptions.
Despite these efforts, airlines say the situation is becoming increasingly difficult to manage. Operators reveal that the cost of fueling a single domestic flight has risen sharply, with some airlines now spending over N7m per trip.
One domestic carrier disclosed that its fuel cost jumped from about N2.1m earlier in the year to over N7m in just a few weeks, describing the increase as unsustainable and a serious threat to continued operations.
Airlines also noted that while costs have surged, ticket prices have not increased at the same rate due to competition and economic realities, forcing operators to absorb heavy losses.
Industry players warn that if the trend continues, airlines may be left with no option but to reduce flights or suspend certain routes to stay afloat.
Adding to the pressure is a looming crisis with ground handling companies, who are threatening to withdraw services over unpaid debts running into billions of naira. This development has raised fears of widespread disruptions across both domestic and international flights.
Meanwhile, the Dangote Refinery is reportedly benefiting from strong global demand for jet fuel, exporting a large portion of its production to international markets where prices are more favourable.
Although the refinery continues to supply the local market, stakeholders say additional logistics and distribution costs are significantly increasing the final price paid by Nigerian airlines.
Experts insist that while short-term interventions may provide relief, a lasting solution will depend on improving crude oil supply to local refineries and addressing inefficiencies in the downstream sector.
For now, operators remain on edge, warning that without urgent and sustained action, Nigeria’s aviation industry could face deeper disruptions in the coming weeks.