DESPITE President Bola Ahmed Tinubu’s approval of a 30 per cent debt relief for domestic carriers, Nigeria’s aviation sector is facing a looming shutdown, as airline operators warn they may halt operations from Thursday, April 30, 2026, over soaring aviation fuel prices.
News Point Nigeria gathered that the dual developments, government intervention and industry resistance underscore a deepening crisis, with airlines insisting that the relief measures fall short of addressing the fundamental challenge of skyrocketing Jet A1 fuel costs.
There are strong indications that domestic airlines may suspend operations nationwide, a move that could trigger widespread travel disruption and uncertainty for passengers who rely on air transport for business and urgent engagements.
Sources told this newspaper that operators, after engaging both the Federal Government and oil marketers without reaching a breakthrough, may have no option but to ground flights if urgent action is not taken.
The shutdown threat follows persistent complaints by airlines, which have seen the price of aviation fuel surge by over 300 per cent compared to February levels, pushing operational costs to unsustainable levels.
Passengers are now bracing for uncertainty, as many face the possibility of cancelled flights and disrupted travel plans across the country.
In a bid to avert the crisis, the Minister of Aviation and Aerospace Development, Festus Keyamo, convened a high-level meeting with airline operators and fuel marketers in Abuja last week.
However, findings revealed that the tripartite talks ended in a deadlock, with operators unwilling to reconsider their position without decisive intervention.
At the conclusion of the two-day meeting, the minister announced a 30 per cent reduction in aviation-related taxes and debts owed to government agencies as part of efforts to ease financial pressure on operators. While the gesture was acknowledged, airline operators maintain that it does not address the core issue of fuel pricing.
Vice President of the Airline Operators of Nigeria (AON), Allen Onyema, commended the government’s effort but insisted that fuel marketers must explain the sharp rise in prices.
“This government has helped the industry more than anyone since 1999, and the President is even willing to waive 30 per cent of the debts airlines are owing. But the truth is that the marketers must be brought to book to explain how they came about the 300 per cent increase when even Dangote is surprised because what he is selling to us is still the cheapest,” Onyema said.
Issuing a stark warning at the end of the meeting, Onyema gave a seven-day ultimatum, stressing that airlines would be forced to stop operations if the situation persists.
“Since the advent of the US-Iran war, there has been a spike in aviation fuel in Nigeria, which we feel is not proportionate to the hike internationally.
“We expect that in the next 48 hours something drastic should be done because no airline will fly in this country in the next seven days if nothing is done,” he warned.
He further revealed the extent of the financial strain, noting that fuel prices have jumped from about N900 per litre to between N2,700 and N2,900, with some marketers selling as high as N3,500 per litre.
“Before the crisis, we were buying fuel at about N900 per litre. Now it has risen to between N2,700 and N2,900, with some selling as high as N3,300 to N3,500,” he said, adding that airlines are now operating mainly to service fuel costs without compromising safety.
“All the airlines in Nigeria have been flying to pay fuel marketers only,” Onyema added.
Despite concerns about indebtedness, senior airline officials, who spoke anonymously due to the sensitive nature of the matter, insisted that operators remain up to date with payments to key agencies, including the Federal Airports Authority of Nigeria and the Nigerian Airspace Management Agency.
Further findings show that the Airline Operators of Nigeria, under its President Abdulmunaf Sarina, formally requested additional relief measures in a letter dated April 21. The group called for the immediate suspension of aviation taxes, fees, and charges for at least six months.
The operators argued that the unprecedented fuel price increase threatens not only airline operations but also jobs and the broader stability of the aviation sector. Among other proposals, they recommended the introduction of a non-taxable fuel surcharge to help cushion rising costs, as well as the issuance of credit notes by oil marketers to airlines affected by what they described as arbitrary pricing.
They also advocated the creation of an industry tax reform committee to review existing charges and align them with global best practices.
As the Thursday deadline approaches, uncertainty continues to mount. Another airline executive warned that the threat of a shutdown remains real if no immediate action is taken.
“If nothing is done, no airline will be flying by Thursday,” the official said.
Meanwhile, President Tinubu’s intervention followed rising tensions in the sector, after the AON had earlier threatened to suspend operations beginning April 20 over the escalating cost of aviation fuel before temporarily stepping back after appeals by the aviation minister.
Announcing the relief, Keyamo disclosed that the President approved a 30 per cent discount on debts owed by airlines to aviation agencies, following communication through the Chief of Staff, Femi Gbajabiamila.
“This evening, Mr President has definitely approved a 30 per cent discount,” the minister said.
According to him, the debt relief covers multiple obligations, including parking fees payable to FAAN, navigational charges owed to NAMA, and other regulatory costs.
While the intervention is expected to ease some financial pressure, airline operators insist that without urgent and targeted action on aviation fuel pricing, the crisis could escalate further.