Nigerian Airlines Threaten Shutdown Over Jet Fuel Crisis

Nigeria’s aviation sector is on the brink of a major disruption as domestic airlines warn they may suspend operations over the soaring cost of jet fuel, triggering fears of widespread economic fallout.

Airline operators under the umbrella of the Airline Operators of Nigeria (AON) say the price of aviation fuel has surged by over 270 percent since late February, making it nearly impossible to sustain operations. Industry leaders argue that fuel costs now exceed airline revenues, placing carriers in a precarious financial position.

The looming shutdown, expected to take effect within days if unresolved, threatens to cripple domestic travel, disrupt business activities, and impact thousands of jobs tied to the aviation value chain. Airlines insist the spike is “artificial,” accusing fuel marketers of inflating prices beyond global crude oil trends.

Fuel suppliers, however, have pushed back, citing logistics challenges and distribution costs as key drivers of pricing. They also note that local refining capacity has yet to stabilize supply, despite the presence of the Dangote refinery, which did not deliver jet fuel to the domestic market in March.

The crisis is unfolding against a backdrop of structural challenges in Nigeria’s aviation industry, including high operating costs, currency volatility, and infrastructure gaps. While new entrants into the market have helped stabilize ticket prices temporarily, experts warn that sustained fuel hikes could reverse those gains and force airlines to cut routes or reduce frequency.

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Aviation analysts say the situation highlights the sector’s vulnerability to external shocks and its heavy reliance on imported or inconsistently supplied aviation fuel. Calls are growing for government intervention, including price regulation, subsidies, or emergency supply measures to avert a shutdown.

Passengers are already bracing for potential disruptions, with travel agents reporting uncertainty in bookings and possible fare increases if operations continue under current cost pressures.

If airlines follow through on their threat, Nigeria could face one of its most severe aviation crises in recent years, with ripple effects across commerce, tourism, and national connectivity.