The Federal Government has commenced dialogue with oil marketers and airline operators over the rising cost of aviation fuel (Jet A1), as domestic carriers threaten to either suspend operations or increase airfares within the next 48 hours to seven days.
Airlines Issue Warning
The Airline Operators of Nigeria (AON) issued the warning amid what it described as an astronomical rise in the price of Jet A1, stressing that urgent intervention is required to avert disruption in flight operations. In response, the government disclosed plans to constitute an ad-hoc committee comprising representatives of oil marketers, AON, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and relevant government agencies to address the situation.
Meeting Ends Without Resolution
The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this in Abuja after a closed-door meeting between airline operators and oil marketers that lasted over three hours but ended without a resolution. Airlines at the meeting questioned why marketers were reportedly lifting Jet A1 from the depot at about N1,879 per litre and selling to operators at around N3,210. Keyamo acknowledged that airlines are under severe financial strain, noting that the cost of aviation fuel has become unsustainable for operators.
“We had frank discussions. Both sides presented their challenges. The airlines have been stretched to their limits and cannot continue at the current prices,” he said. He added that focal persons would be appointed from the marketers, regulators, airlines, and government to work within the next 48 to 72 hours to arrive at a fair and reasonable pricing framework.
Free Market Not a Licence to Exploit
While noting that the sector operates under a deregulated market, the minister cautioned that it should not be exploited. “There is a free market, yes, but it is not a licence to go haywire. We will determine if there are distortions or profiteering and take appropriate steps,” he said.
Airlines Warn of Shutdown
Speaking on behalf of the airlines, AON representatives said the spike in fuel prices in Nigeria is disproportionate compared to global trends, attributing part of the increase to international developments, including tensions linked to the US-Iran situation. They warned that if nothing is done within the next few days, airlines may be forced to halt operations, not by choice but due to inability to sustain current costs. “No airline will be able to continue flying in the next seven days if the situation persists. The cost of fuel alone is overwhelming,” the operators said, adding that any fare increase would be driven by operational realities. They, however, expressed optimism that government intervention would yield results, noting that the President is already engaging stakeholders on the issue.
Regulator's Assurance
Also speaking, the representative of the NMDPRA, Engr Seidu Muhammed, said it would engage marketers and review pricing frameworks to ensure fairness while maintaining a balance that allows both airlines and fuel suppliers to remain in business. The agency described the situation as critical and assured that efforts were underway to prevent a shutdown of airline operations.
Government Offers 30% Discount on Debts
Meanwhile, the Federal Government announced a 30 per cent discount on outstanding debts owed by airlines to aviation agencies, including the Federal Airports Authority of Nigeria (FAAN), the Nigerian Civil Aviation Authority (NCAA), and the Nigerian Airspace Management Agency (NAMA). The minister clarified that the relief is not a subsidy but a concession on existing liabilities to ease the financial burden on operators.
