Nigeria’s aviation sector is on the brink of disruption as airlines warn they may begin shutting down operations from April 20 following a sharp spike in aviation fuel prices to nearly ₦3,000 per litre.
The alarm was raised by Tunji Oyebanji, who disclosed that the soaring cost of JetA1 is pushing operators to the edge of survival.
According to him, at least one airline may have already suspended services, with others preparing to follow as the cost burden becomes increasingly unsustainable.
“Airlines are threatening to shut down operations effective April 20 due to the high cost of JetA1… One may already have suspended operations,” he said.
Oyebanji linked the crisis to a mix of local supply constraints and tightening global markets, worsened by the ongoing tensions involving Iran, the United States, and Israel, which have disrupted refining output and squeezed global fuel availability.
Unlike international carriers that hedge risks through long-term supply contracts, Nigeria’s domestic airlines largely depend on spot purchases at airport depots—leaving them exposed to sudden price spikes.
“When supply tightens, prices soar. Local airlines bear the brunt because they buy on the spot,” Oyebanji explained.
He further noted that the absence of effective hedging strategies, combined with weak financial buffers, has left local operators highly vulnerable. Oil marketers, wary of mounting debts, now insist on cash payments—intensifying the financial strain on airlines already grappling with rising costs.
Beyond fuel prices, Oyebanji also took a swipe at airline pricing practices, accusing some operators of exploiting peak travel seasons with steep fare hikes.
On the global stage, the situation appears equally grim. JetA1 shortages linked to Middle Eastern supply disruptions have forced airlines in countries like the United Kingdom to cut back on flights, reflecting the scale of the crisis.
There are also concerns that a significant share of output from the Dangote Refinery is being exported to meet surging international demand, potentially tightening supply within Nigeria.
The crisis traces back to escalating geopolitical tensions since late February 2026, which have driven crude oil prices above $100 per barrel, triggering a ripple effect across global energy markets and pushing domestic fuel prices upward.
With costs spiralling and supply uncertain, industry watchers warn that without urgent intervention, Nigeria could be heading toward a full-blown aviation shutdown—grounding flights and disrupting travel nationwide.
