UPDATED: Don't increase airfare or suspend operations, Nigerian govt begs airlines

The Nigerian government has appealed to the country’s airlines not to increase airfare nor suspend operations over the hike in the price of aviation fuel.

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Aviation Minister Festus Keyamo said this in a letter to the Airline Operators of Nigeria. Mr Keyamo shared the letter on his X handle on Friday morning.

PREMIUM TIMES reports that Mr Keyamo’s letter was a response to an earlier one by the AON, stating that its members would down tools on 20 April over the aviation fuel price hike.

The AON said its members now pay about N3,300 per litre of aviation fuel, up from about N900 paid for the same volume in February.

In the letter dated 16 April, Mr Keyamo acknowledged the operational challenges facing airlines, particularly the sharp rise in the cost of Jet A1 fuel, but urged restraint in taking decisions that could further affect passengers and the economy.

“First, I urge your members to exercise restraint with respect to any proposed increase in airfares at this time,” he wrote, warning that higher ticket prices could impose additional hardship on Nigerians and reduce access to air travel.

He also appealed to the airlines to reconsider any planned suspension of operations, noting that such a move could disrupt economic activities and weaken public confidence in the aviation sector.

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“Such action would have far-reaching adverse implications for the national economy, disrupt critical mobility and logistics networks, erode public confidence, and undermine the progress recorded under the ongoing reforms within the aviation sector,” he said.

The minister said the Federal Government is already engaging stakeholders to address the situation and announced plans for an emergency meeting.

“Accordingly, a high-level emergency stakeholders’ meeting has been scheduled to hold on Wednesday, April 22, 2026, in Abuja… with a view to achieving a prompt, practical, and sustainable resolution,” he noted.

Background

Nigeria’s aviation sector is already under pressure as airlines grapple with rising Jet A1 fuel costs, foreign exchange volatility, and persistent supply constraints. Aviation fuel remains one of the biggest cost drivers for operators, and any increase is quickly reflected in operating expenses and, often, airfares.

Air travel demand in the country is highly price-sensitive, with passenger traffic concentrated on major commercial routes such as Lagos–Abuja and Lagos–Port Harcourt. On these routes, operators say fare increases tend to quickly dampen demand, particularly among regular business travellers and middle-income passengers.

Globally, jet fuel prices have remained elevated, tracking crude oil movements and reflecting tight refining capacity alongside lingering supply chain pressures. Industry data from the International Air Transport Association (IATA) show that fuel can account for 30 to 40 per cent of airline operating costs, leaving carriers highly exposed to energy price shocks amid the war between US-Israel and Iran.

READ ALSO: Airport Cashless Policy: Keyamo urges Nigerians to exercise patience

In Nigeria, the pressure is further worsened by reliance on imported refined products and continued foreign exchange constraints affecting fuel importation costs. Even when global oil prices ease, domestic aviation fuel prices often remain volatile due to logistics challenges and dollar liquidity pressures.

The Dangote Petroleum Refinery, which began phased operations in January 2024 with the production of diesel and aviation fuel, is expected to boost domestic refining capacity over time. However, operators note that its full impact on Jet A1 supply and pricing is still evolving as distribution systems and market structures adjust.

The development underscores growing pressure within Nigeria’s aviation sector, where rising fuel costs continue to threaten airline operations and ticket pricing.