Nigeria’s aviation minister has appealed to domestic airlines to avoid increasing airfares or suspending flight operations following a 300% spike in the price of jet fuel. He was responding to the organisation's warning that Nigerian airlines would suspend operations from April 20 over the hike.
In a letter addressed to the Airline Operators of Nigeria (AON), minister Festus Keyamo on April 16 acknowledged that the industry is facing severe operational challenges.
He acknowledged that the price of Jet A1 fuel had skyrocketed from NGN900 naira (USD0.66) per litre on February 28 to NGN3,300 (USD2.45) on April 16.
In a letter to fuel marketers, the AON described the increase as "artificial" and far out of line with the roughly 30% rise in global crude oil prices.
Airlines said they had absorbed the higher costs for over a month but could no longer continue, with revenues now insufficient to cover fuel alone. The situation is already forcing operational shutdowns, the AON warned, with one carrier grounded since March 13, cautioning that more could follow, posing risks to the aviation sector, the economy, and national security.
Minister's response
However, Keyamo urged airlines to "exercise restraint" regarding any proposed fare hikes, warning that any immediate adjustments would impose "significant hardship on the travelling public" and could depress demand for air travel across the country.
He called on carriers to reconsider any plans to shut down services, stating that a suspension of flights would have "far-reaching adverse implications for the national economy" and disrupt critical logistics networks.
"The sector remains a critical national asset essential to trade facilitation, national security, employment generation, and overall economic integration," Keyamo wrote, noting that the administration of President Bola Ahmed Tinubu views the industry as a high strategic priority.
To address the crisis, the federal government has scheduled a "high-level emergency stakeholders' meeting" for April 22 in Abuja. The meeting will include regulatory authorities and industry stakeholders to seek a "prompt, practical, and sustainable resolution" to the pricing crisis.
Keyamo assured operators that their concerns have the "full attention" of the government and that immediate steps are being taken to stabilise the sector.
