Nigerian Airlines Struggle Amid Rising Aviation Fuel Costs

Domestic airlines in Nigeria are in a precarious situation as the cost of aviation fuel continues to rise, significantly impacting their operational expenses. Dr.

Alex Nwuba, an aviation industry expert, noted that the cost of jet A1 fuel has reached approximately N1,650 to N2,037 per liter, which constitutes nearly half of the total operational costs for airlines. Despite an increase in base fares to N200,000, airlines remain deeply indebted and unable to sustain operations.

The federal government has pledged to forgive 30% of the debts owed by airlines to aviation agencies, estimated at around N200 billion, but this temporary relief does not address the underlying issues. Captain Ado Sanusi, Managing Director and CEO of Aero Contractors, emphasized the need for long-term policies to ensure the survival of the aviation industry, highlighting that high taxation and operational costs hinder profitability.

The proposed Fuel Stabilization Program aims to provide sustainable economic solutions for domestic operators.