Nigerian Airlines Face Bankruptcy Amid Fuel Price Surge

Nigerian airlines are on the brink of bankruptcy as aviation fuel prices have surged, with current prices ranging from N2,690 per liter in Lagos to N2,990 in Kano. Captain Ado Sanusi, Managing Director and CEO of Aero Contractors, stated that airlines cannot continue to absorb these rising costs without increasing ticket prices.

The aviation fuel price in Nigeria has risen by 50% recently, compared to a 30% increase in global crude prices. Sanusi emphasized the need for government intervention to regulate fuel prices, arguing that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has failed to ensure transparency in pricing.

He noted that if fuel prices continue to rise, airlines may have no choice but to increase fares, potentially leading to a decrease in passenger traffic. The situation is exacerbated by the high costs associated with importing fuel and logistics, which further strain airline operations.