Nigerian airlines have warned they will suspend operations from April 20 unless authorities intervene to curb surging jet fuel prices, in a move that could disrupt air travel across Africa’s most populous nation.
The Airline Operators of Nigeria (AON), which represents about a dozen mostly domestic carriers, said fuel costs have risen sharply in recent weeks, making operations financially unsustainable.
In a letter dated April 14 to the Major Energies Marketers Association of Nigeria (MEMAN), the group said jet fuel prices had jumped by about 270 percent since late February.
“Astronomical” cost surge
Airlines described the increase as “astronomical and artificial,” arguing that it far exceeds the rise in global crude oil prices.
“Currently, airline revenues are insufficient to cover the cost of fuel alone,” AON said in the letter seen by Reuters.
The spike in prices comes amid broader global energy market disruptions linked to the Iran conflict, which has affected shipping through key routes such as the Strait of Hormuz.
However, Nigerian carriers argue that local pricing dynamics have worsened the situation, pushing costs beyond global trends.
MEMAN did not immediately respond to requests for comment.
Industry under pressure
Jet fuel is already one of the largest cost components for airlines in Africa, typically accounting for 30 to 40 percent of operating expenses, compared with a global average of 20 to 25 percent.
The latest surge has placed additional strain on Nigeria’s aviation sector, forcing airlines into a difficult position.
Raising ticket prices to reflect higher fuel costs risks reducing passenger demand, while continuing operations at current prices could lead to mounting losses.
AON warned that a shutdown would have wide-ranging economic consequences, including job losses, pressure on the banking sector and potential disruptions to security and connectivity.
Supply concerns emerge
Data from Nigeria’s petroleum regulator showed the aviation sector consumed around 2.1 million litres of jet fuel per day last month.
However, the Dangote Petroleum Refinery — the country’s only domestic producer of jet fuel — made no deliveries to the local market in March, according to the same data.
At the same time, exports of refined petroleum products from Nigeria more than doubled month-on-month, according to tanker-tracking firm Kpler, raising concerns about domestic supply availability.
The refinery did not respond to requests for comment.
Risk of disruption
The standoff between airlines and fuel marketers highlights broader structural challenges in Nigeria’s energy and aviation sectors, including supply bottlenecks, pricing transparency and foreign exchange pressures.
If airlines follow through on their threat, the suspension of flights could significantly disrupt travel and economic activity in Nigeria, where air transport plays a key role in connecting major cities and supporting business operations.
The situation also underscores the vulnerability of African airlines to fuel price shocks, particularly in markets where supply chains are constrained and operating costs are already high.
With just days before the April 20 deadline, attention is now focused on whether authorities and industry players can reach a resolution to avert a shutdown.
