Nigerian airlines suspend shutdown plan over fuel crisis

Nigerian airlines have paused a planned nationwide shutdown of flight operations after government intervention, opening a narrow window for talks over soaring jet fuel costs that operators say are crippling the sector.

The Airline Operators of Nigeria (AON), which represents about a dozen mostly domestic carriers, had threatened to halt services from Monday, April 20, citing a sharp spike in aviation fuel prices that it said had made operations unsustainable.

In a weekend statement, the group said it agreed to suspend the action following an appeal from Festus Keyamo, Nigeria’s Minister of Aviation and Aerospace Development, who called for restraint and dialogue.

“Rising from an emergency meeting held this evening, the Airline Operators of Nigeria has reached a concessionary but conditional decision to temporarily suspend its earlier planned shutdown action,” AON said.

The suspension is tied to the outcome of a meeting scheduled for April 22, convened by the minister, where airlines, regulators and fuel suppliers are expected to address pricing and supply concerns.

As part of its conditions, AON urged government agencies and service providers to maintain operations and stop demanding upfront payments, which it said are worsening airlines’ financial strain.

The pause follows days of escalating tensions in Nigeria’s aviation sector. Airlines had warned that jet fuel prices had surged by about 270% since late February, describing the increase as “astronomical and artificial” and far out of line with global crude oil trends. “Currently, airline revenues are insufficient to cover the cost of fuel alone,” the group said earlier.

Fuel is the single largest cost for airlines in Nigeria, accounting for more than a third of operating expenses—well above the global average—leaving carriers highly exposed to price shocks.

Operators say the pressure has been compounded by supply constraints and foreign exchange challenges, which have pushed up the cost of importing and distributing aviation fuel.

Fuel marketers, however, have pushed back. The Major Energies Marketers Association of Nigeria (MEMAN) disputed the airlines’ figures, saying quoted prices were significantly above market averages and reflecting the high cost of specialised logistics required to handle jet fuel.

Industry data points to deeper structural issues. Nigeria consumes about 2.1 million litres of jet fuel daily, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority, yet domestic supply remains inconsistent. The Dangote Petroleum Refinery—currently the country’s only local producer—made no deliveries to the domestic market in March, even as exports of refined products surged.