Nigerian airlines warn of shutdown as jet fuel prices surge

Nigerian airlines have threatened to suspend flight operations from Monday, April 20, if the sharp rise in jet fuel prices is not reversed, escalating tensions between carriers and fuel marketers in one of Africa’s largest aviation markets.

The Airline Operators of Nigeria (AON), which represents about a dozen mostly domestic carriers, said in a letter dated April 14 that the cost of aviation fuel had jumped by roughly 270% since late February. The group accused marketers of driving what it described as an unjustified spike in prices.

In the letter, reported by Reuters, the airlines described the increase as “astronomical and artificial,” arguing it far exceeded movements in global crude markets. “Currently, airline revenues are insufficient to cover the cost of fuel alone,” the group said.

The warning underscores mounting pressure on Nigeria’s aviation sector, where fuel is already the single largest cost component. Across Africa, jet fuel typically accounts for between 30% and 40% of airline operating expenses—significantly higher than the global average of 20% to 25%, according to industry estimates—leaving carriers especially exposed to price shocks.

The Major Energies Marketers Association of Nigeria (MEMAN) rejected the airlines’ claims, disputing both the pricing figures and the allegation of market distortion. In a response also seen by Reuters, the group said the price cited by AON was more than 40% above a survey-based market average.

MEMAN added that aviation fuel pricing reflects the complexity of its supply chain, noting that jet fuel distribution requires specialised infrastructure and handling, making it more expensive than other petroleum products.

The standoff comes at a time of broader global turbulence in energy markets, with rising fuel costs linked to geopolitical tensions disrupting aviation worldwide. Airlines globally have responded by raising fares, cutting capacity, and revising growth forecasts. In Nigeria, however, operators say their ability to pass on higher costs is constrained by weak consumer demand.

AON warned that significant fare increases could further depress passenger traffic, while a shutdown of operations would ripple across the economy. The group said flight suspensions would affect banking exposures, lead to job losses, and potentially worsen security conditions by limiting mobility.

Industry data highlights the scale of the challenge. Nigeria’s aviation sector consumed about 2.1 million litres of jet fuel per day last month, according to figures from the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

At the same time, supply dynamics appear uneven. The Dangote Petroleum Refinery—currently the country’s only domestic producer of jet fuel—did not supply the local market in March, according to regulatory data.

Meanwhile, export data from tanker-tracking firm Kpler showed that Nigeria’s shipments of refined petroleum products, including jet fuel, gasoline and diesel, more than doubled month-on-month during the same period.

The apparent mismatch between domestic demand and supply has intensified scrutiny of pricing and distribution practices in the market, though Dangote Refinery did not respond to requests for comment.