Nigerian Airlines Threaten Shutdown Over Fuel Price Surge

Airlines in Nigeria are facing a crisis as the price of aviation fuel, Jet A1, has surged to N3,000 per litre, prompting them to threaten a suspension of operations effective April 20. Tunji Oyebanji, Chief Executive of Energy Advisory and former Chairman of Mobil Nigeria, stated that the current fuel price is unsustainable for domestic carriers, which have already begun halting services.

The spike in fuel prices is attributed to a combination of domestic supply constraints and tightening global markets, exacerbated by ongoing conflicts involving Iran, the United States, and Israel. Oyebanji explained that Nigerian airlines heavily rely on local suppliers, particularly Dangote Refinery, but unlike international carriers, they lack long-term contracts and are thus vulnerable to price volatility.

He urged airlines to review their pricing strategies, especially during peak travel seasons. Without urgent intervention, Nigeria's aviation sector could face significant disruptions due to fuel scarcity and escalating costs, which are further influenced by global oil prices exceeding $100 per barrel.