In a staggering blow to Nigerian aviation, the cost of the very lifeblood of the industry has tripled recently. What was once a manageable ₦900 per litre has mutated into a ₦3,500 burden, leaving operators with a grim choice: stop flying or face financial ruin.

As the ripples of the US-Iran crisis reach Nigerian runways, the nation’s airspace hangs in a delicate balance.

Now, there are strong indications that domestic airlines in Nigeria may halt operations from Thursday, April 30, 2026, over what operators described as unbearable and unsustainable aviation fuel prices, raising fresh fears of widespread travel disruption across the country.

Industry insiders say the airlines, having engaged both the Federal Government and oil marketers without a breakthrough, may be left with no option but to ground flights by Thursday.

The looming shutdown comes after several complaints by operators, who have watched the price of Jet A1 surge by over 300 per cent compared to February levels, pushing operating costs to the brink.

Passengers, many of whom rely on domestic flights for business and urgent travel, now face uncertainty.

In a bid to avert the crisis, Festus Keyamo, the minister of Aviation and Aerospace Development, convened a meeting with airline operators and fuel marketers in Abuja last week. However, findings indicate that the tripartite talks ended in a deadlock, with operators unwilling to shift their stance unless decisive action is taken.

At the end of the two-day meeting, the minister announced a 30 per cent reduction in aviation-related taxes as part of efforts to ease the burden on airlines. While the gesture was acknowledged, operators insist it falls short of addressing the root problem.

Speaking on the first day of the meeting, Allen Onyema, vice president of the Airline Operators of Nigeria, welcomed the government’s intervention but maintained that fuel marketers must account for the sharp rise in prices.

Onyema said,

“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.”

At the end of the second day, Onyema issued a stark warning, giving a seven-day ultimatum from midnight last Thursday for action to be taken. “Since the advent of the US-Iran war, there has been a spike in aviation fuel in Nigeria, which we, the Airline Operators of Nigeria, 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, not because they don’t want to fly, but because fuel may not be available to us at sustainable pricing.”

Providing further insight into the financial strain, Onyema disclosed that fuel prices have skyrocketed from about ₦900 per litre before the crisis to between ₦2,700 and ₦2,900, with some marketers selling as high as ₦3,500.

“Before the crisis, we were buying fuel at about N900 per litre. Now it has risen to between ₦2,700 and ₦2,900, with some selling as high as ₦3,300 to ₦3,500,” he said.

According to him, airlines are now operating primarily to service fuel costs. “All the airlines in Nigeria have been flying to pay fuel marketers only, and you don’t want to compromise safety,” he added.

Despite speculations about indebtedness, senior airline officials who spoke to our correspondent in confidence on Sunday, due to the sensitive nature of the matter, insisted that operators are up to date with payments to key aviation agencies, including the Federal Airports Authority of Nigeria and the Nigerian Airspace Management Agency.

According to Punch report, the Airline Operators of Nigeria have formally requested additional relief measures from the government.

In the letter dated April 21 and signed by Abdulmunaf Sarina, AON president the group called for the immediate suspension of aviation taxes, fees, and charges for at least six months.

The operators argued that the unprecedented rise in fuel costs threatens not only airline operations but also jobs and the stability of the aviation sector.

Among other demands, the AON proposed the introduction of a non-taxable fuel surcharge, a standard practice in international aviation to help airlines manage rising costs.

They also urged the government to direct oil marketers to issue credit notes to airlines affected by what they described as excessive and arbitrary price hikes. In addition, the group called for the establishment of an industry tax reform committee to review existing charges, assess their relevance, and align them with global standards.

As the deadline approaches, uncertainty hangs over Nigeria’s aviation sector. Another airline executive, who spoke anonymously on Sunday because he was not authorised to comment publicly, warned that the shutdown threat remains real. “If nothing is done, no airline will be flying by Thursday,” he said.

The Air Peace boss in an interview with Channels shared on App X, said that ‘taking Air Peace off’ will make Nigeria pay 20 times over for flight tickets.

Onyema recounted his experience in the groundbreaking Air Peace Lagos to London flight, the associated challenges, and the support from the federal government of Nigeria.

Recall that Techeconomy reported Air Peace’s commencement of services on Lagos-London route after it announced plans to begin direct flight operations on March 10, 2024, during a pre-launch forum organized by the airline in February.

Present at the inaugural flight to London is the Minister of Aviation and Aerospace Development, Festus Keyamo; Doris Uzoka-Anita, among others.

Speaking further, Onyema, the Ananmbra born lawyer turn businessman, while  unraveling the details surrounding the operation of the Airline,  noted that there is the devilish conspiracy from the international Airlines, which as in less than one month begin to splash their price in a way that is lower than the cost of  operation.

In his words: It’s a devilish conspiracy; all of a sudden airlines are underpricing that is below the cost of operation in not more than one month.  One other airlines was advertising $100, another one is $350.

“If you filled up the entire Aircraft and carry people on the wind it is not even enough to buy your fuel so why I they even doing that?  Their governments are supporting them because Nigeria has been cash out for everybody.

According to him, the Governments of those Airlines support them because they want to take   Air Peace out and the moment they succeed in taking Air Peace out, Nigerians will pay 20times over once again, it is going to happen, God forbid if they take Air Peace out.

While narrating the challenge he is faced with in the industry, particularly as it has to do with the newly launched Lagos to London direct flight.

He said “let me tell you this, on the first day, that is the inaugural flight out of London, 24 hours to the time, they moved us to another checking area other than the place assigned to us, the place they gave us, the carousel was not walking so when you check in people, you need to manually carry the load, which is 50meters away somewhere else to go and drop them just to delay us.

“No  other airline faces that, they did not allow us  to land at Heathrow Airport,  even  when we to Gatwick Airport  they say no slot  is available, when we push and push they gave us scattered slot, today 3:Pm , the next day 2:am who does that?

Onyema was how however  grateful to the Federal Government of Nigeria,  and the Festus Keyamo, the minister of Aviation and Aerospace Development who came to the succour of the Air Peace.

According to him, Festus Keyamo had to wade in, went to London with us and to warn them, that if they continue the foolish act, the government of Nigeria will retaliate and this is from the President of the federal Republic of Nigeria.

It is important to note that , with Air Peace’s entry into London Gatwick, not only will the country be saved scarce foreign exchange, but her citizens will benefit from reduced airfares, avoid exploitation by foreign airlines, and benefit from direct flights into the United Kingdom and other parts of the world where that is Possible

Abdérahmane Berthé, the Secretary General of the AFRAA, stated this during the CEO Dialogues initiative with Member Airlines in Nigeria recently.

The CEO Dialogues initiative was launched in 2022 as part of AFRAA’s strategy to engage with member’s leadership to create dialogue that is necessary to enhance value addition of the association to better meet its members’ needs.

The AFRAA Secretary General further had a meeting with the Vice President of Airline Operator of Nigeria (AON), Barr Allen Onyema to discuss their Associations’ mutual areas of interest and support to airlines in Nigeria.

The issues covered in the deliberations included: priorities for the recovery of the airline industry, sustainability of airlines, challenges being faced by Nigerian operators and the establishment of a coordination mechanism between AFRAA and AON.

At the conclusion of the CEO’s Dialogue sessions, Berthé, stated that Nigeria is a key market for the African air transport which is ranked at 8th position out of 54 in terms of the number of intra African passengers that are estimated at 1.1 million according to IATA statistics.

“The market has a huge potential for growth and economic contribution. Today’s deliberations have been fruitful and critical to align our actions for our member airlines in Nigeria and give the support within our mandate to drive the development of the air transport sector.

With this initiative, AFRAA aims to facilitate better understanding of individual airline needs, local matters and challenges, priorities and business plans thereby enabling us tailor specific actions that enhance relevance of the Association to our membership”,  Berthé said.

The CEO’s Dialogues are continuous, round-the-year sessions that engage the Member airlines’ decision makers with AFRAA leadership towards effective implementation of added-value projects and actions supporting members’ sustainability. 

AFRAA’s actions are anchored on 5 pillars including: Safe, secure and reliable air transport, visibility, reputation and influence of African Airlines, sustainable air transport, cooperation and data intelligence.

In a video clip seen by TechEconomy, the Air Peace boss questioned why Nigerians should pay a whopping N2.3 million for an economy ticket to London when Air Peace, an indigenous operator, would charge N500,000.

“As I speak to you, the UK is doing 21 frequencies into my country. They have not been able to respect Airpeace’s ordinary email. They even had the temerity to write us to say we should stop writing them. Whenever they are ready they will get across to us.

“Why are Nigerians paying 2.3 million Naira for an economy ticket to go to London when Air Peace could have taken 500,000 Naira for the same trip.”

Onyema said in the last 25 years, Nigerians have been paying more than any other country for the same trip. “The people from South Africa, nine hours away from London, have been paying less than Nigerians on a six-hour flight.”

BASA Agreement

Onyema also accused foreigners of failing to comply with the Bilateral Air Services Agreement (BASA), which provides for both repatriations of funds.

BASA is an air transport agreement between two countries that allows designated airlines to operate commercial flights, covering the transportation of passengers and cargoes.

According to Onyema, the most important aspect of BASA is reciprocity. “Have these foreign airlines and their countries abided by that? Have they respected the BASA they signed with Nigeria? The answer is no.”

Continuing, he said: “You know, the other time we fought one of the countries from the Middle East. They were doing about twenty-something frequencies to Nigeria, not even one to us. We had to fight for it.”

Trapped Funds

On the trapped funds belonging to foreign airlines, Onyema said he wished they got their funds. He, however, debunked the reports that funds were deliberately seized.

“It pains me when Nigerians and some agents go on television, criticizing the federal government of Nigeria, saying that the government has failed, because foreign airlines didn’t get their funds. I support airlines in getting their funds. The Central Bank of Nigeria didn’t seize anybody’s money.

“They just wanted to get the exchange through the Central Bank’s official window. They could also go through the I&E window, which is a little bit more expensive.”

He added that the Central Bank of Nigeria has always supported indigenous operations and called on operators to start international operations to so to save money for the country, but foreign airlines do not allow them to come to their country to operate