Airlines Raise Shutdown Alarm as Aviation Fuel Talks With FG Collapse

ABUJA — Fresh concerns have emerged over the stability of Nigeria’s aviation sector after negotiations between airline operators, fuel marketers, and the Federal Government over jet fuel pricing ended in deadlock on Thursday.

The 48-hour talks, held in Abuja, failed to produce a conclusive agreement, raising the prospect of increased airfares or a possible suspension of flight operations across the country.

The development comes despite the Federal Government’s approval of a 30 per cent debt relief package for airlines, introduced by President Bola Tinubu as emergency support following a steep 300 per cent rise in aviation fuel costs.

The waiver covers outstanding obligations owed to aviation regulatory agencies such as the Nigerian Civil Aviation Authority (NCAA) and the Nigerian Airspace Management Agency (NAMA).

Minister of Aviation and Aerospace Development, Festus Keyamo, clarified that the intervention is not a subsidy but a short-term relief measure designed to reduce financial pressure on operators.

However, airline operators argue that the support package is insufficient to address the scale of the crisis, warning that the industry is nearing operational collapse.

Following a four-hour closed-door meeting involving stakeholders in Abuja, Keyamo announced the formation of technical “focal teams” tasked with developing a sustainable pricing structure for aviation fuel.

“The focal teams will immediately engage to arrive at fair and reasonable pricing,” he said, adding that further updates would be communicated within 72 hours.

He acknowledged that airlines are currently under severe strain due to escalating fuel and operational costs.

Vice President of the Airline Operators of Nigeria (AON), Allen Onyema, described the situation as critical, warning that airlines may be forced to shut down within days if urgent steps are not taken.

“No airline can continue under these conditions. The cost of fuel alone is overwhelming operations,” Onyema said.

He noted that operators had already exceeded sustainable financial limits but welcomed the government’s engagement, while insisting that further relief within a week would determine the sector’s survival.

On his part, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Saidu Aliyu Mohammed, said discussions were ongoing to review pricing templates to ensure a balance between fuel supply dynamics and airline viability.

Stakeholders are expected to reconvene as efforts intensify to prevent a shutdown and stabilise air transport operations in Nigeria.

Africans Angle News