Nigeria's aviation sector, fresh off a global safety achievement, is grappling with a surge in Jet A1 fuel prices that has pushed operating costs to unsustainable levels. The International Civil Aviation Organization recently recorded Nigeria's Effective Implementation score at 91.45 per cent, but this progress is now threatened by economic strain on airlines. Between February and April, the price of Jet A1 rose from ₦900 per litre to as high as ₦3,300 in some states, with Lagos and Abuja depot prices officially pegged at ₦1,760–₦1,988 and ₦1,809–₦2,037 per litre respectively by the Nigerian Midstream and Downstream Petroleum Regulatory Authority on April 26. Air Peace responded by cutting its Abuja-London route from daily to three weekly flights on April 26, while Ibom Air reported that fuel costs per flight jumped from ₦2.1 million in January to ₦7.6 million by April 26, a 350 per cent increase. Dr Alex Nwuba, President of the Aircraft Owners and Pilots Association Nigeria, stated that airlines collectively overpaid by about ₦150 billion for jet fuel during the three-month period. He noted that Nigeria consumes approximately 14,100 barrels of jet fuel daily, equivalent to 2.24 million litres, and stressed that fuel now accounts for 45 to 50 per cent of airline operating expenses. Retired Air Commodore Ademola Onitiju, President of the Aviation Safety Roundtable Initiative, argued that the crisis extends beyond global crude oil fluctuations, citing a local pricing disconnect, as a Platts/IATA benchmark of $184.63 per barrel in mid-April should translate to about ₦1,559 per litre at an exchange rate of ₦1,342 to the dollar—far below actual depot prices. Onitiju urged urgent, precise intervention, suggesting a temporary parity-restoration measure and a potential 30 per cent reduction on verified operational debts. The Airline Operators of Nigeria attributed the price hike to rising global crude oil prices linked to Middle East tensions, but also acknowledged domestic market distortions. Airports face income losses, ground handlers have raised alarms over ₦9 billion in unpaid dues, and concessionaires are seeking relief.
Airlines paid ₦150 billion extra for fuel in three months while official benchmarks suggest domestic prices far exceeded global parity rates. The discrepancy points to structural failures in fuel pricing, not just global market shifts. If regulators cannot align local prices with verifiable international benchmarks, the sector's financial integrity remains at risk. Economic necessity, not sympathy, demands immediate corrective measures.
Editorial note: AI-assisted opinion, not established fact. Full disclaimer →
