Nigeria: Airlines warn of shutdown or fare hike as jet fuel talks with FG stall
By Zuleihat Owuiye, Mamos Nigeria
Nigerian airlines may raise ticket prices or suspend operations after 48 hours of negotiations with the Federal Government on the aviation fuel crisis ended in deadlock.
The warning comes despite a 30 percent debt discount approved by President Bola Tinubu for airline operators to ease pressure from a roughly 300 percent spike in aviation fuel prices.
The waiver covers debts owed to agencies including the Nigerian Civil Aviation Authority and the Nigerian Airspace Management Agency. Aviation and Aerospace Development Minister Festus Keyamo called it emergency relief, not a subsidy, meant to cushion rising operational costs.
But operators say the intervention may not be enough to avert a crisis. They warn that fare increases could be unavoidable as carriers struggle to stay afloat.
After a four-hour closed-door meeting in Abuja on Thursday, Keyamo said stakeholders — airline operators, oil marketers, regulators, and the ministry — agreed to set up technical “focal teams” to negotiate a sustainable pricing framework.
“The focal teams will immediately engage to arrive at fair and reasonable pricing,” Keyamo said, adding that the public would be updated within 72 hours. He acknowledged that soaring fuel costs and other expenses are pushing airlines to the brink.
Allen Onyema, Vice President of the Airline Operators of Nigeria, said the situation is critical. “No airline can continue under these conditions. The cost of fuel alone is overwhelming operations,” he said, noting operators have “stretched beyond sustainable limits.”
Onyema commended the government’s engagement but stressed that without further relief within seven days, airlines may be forced to halt operations.
Saidu Aliyu Mohammed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, said efforts are underway to review pricing templates and balance fuel supply with airline survival.
The outcome of the next round of talks is expected to determine whether the sector avoids a shutdown or faces higher ticket prices.
