April 27, (THEWILL) — Aviation experts have issued a stark warning over Nigeria’s deepening Jet A1 fuel crisis, cautioning that continued market distortions and mounting financial pressures could force airlines to suspend operations, with far-reaching consequences for the nation’s economy.
In a strongly worded statement dated April 27, 2026, with reference number: ASRTI/001/FGN/26, the Aviation Safety Round Table Initiative (ASRTI) appealed to the Federal Government, the National Assembly, and the Ministry of Aviation and Aerospace Development to urgently intervene in what it described as a “systemic emergency”.
The statement, jointly signed by ASRTI President, Commodore (rtd) Ademola Onitiju and General Secretary, Olumide Ohunayo, was addressed to the President of the Federal Republic of Nigeria, with copies sent to key aviation oversight committees in the National Assembly.
According to the group, Nigeria’s aviation sector is currently at a critical inflexion point, driven by three converging pressures: escalating Jet A1 fuel prices, severe liquidity constraints among airlines, and a cascading financial strain across airports, concessionaires, and ground-handling companies.
The experts highlighted a significant disparity between global fuel benchmarks and domestic pricing. While international refinery-gate benchmarks averaged approximately $184.63 per barrel in mid-April—translating to about ₦1,559 per litre at prevailing exchange rates—local depot prices surged dramatically from ₦900 per litre in February to as high as ₦3,300 per litre by mid-April.
They stressed that even after accounting for logistics and exchange rate volatility, domestic prices remain nearly double global parity, indicating structural inefficiencies within the local supply chain rather than purely global market pressures.
ASRTI warned that the crisis is being compounded by a chain reaction triggered by debt concessions across the sector. Airports, concessionaires, and ground handling companies have all sought financial relief, with ground handlers threatening to halt services over debts exceeding ₦9 billion.
However, the group emphasised that prioritisation is critical, noting that airlines represent the core of the aviation value chain. “If airlines collapse, the entire system collapses with them”, the statement noted, stressing that agency revenues, concession income, and thousands of jobs depend directly on airline operations.
To avert an imminent shutdown, the experts proposed a series of emergency and structural interventions. Central among them is the introduction of a time-bound Jet A1 price stabilisation mechanism. This would involve government-backed procurement of fuel at negotiated parity rates for six months, covering February to April distortions, with an additional four-month buffer to ensure stability.
The proposed mechanism, they said, must be transparent, independently audited, and aligned with global benchmarks to eliminate pricing discrepancies across the supply chain.
In addition, ASRTI called for an emergency stabilisation package for airlines, including low-interest bridge financing and working capital guarantees. These funds would be tied to strict compliance conditions such as safety standards, payroll continuity, and uninterrupted service delivery, alongside verifiable debt restructuring plans.
The statement also outlined measures to support other industry stakeholders, including liquidity support for ground handlers, temporary rent deferrals for concessionaires, and carefully controlled debt restructuring frameworks.
However, it cautioned against indiscriminate financial relief, advocating targeted interventions backed by independent valuation and strict oversight.
To ensure accountability, the experts recommended the establishment of a neutral reconciliation framework to manage all financial interventions, supported by independent auditing and transparent reporting mechanisms.
Beyond immediate crisis management, ASRTI stressed the need for long-term structural reforms. These include a comprehensive audit of aviation charges, taxes, and fees to align Nigeria’s cost structure with global standards and eliminate inefficiencies that inflate ticket prices.
The group also proposed the creation of a National Energy Price Protection Programme (NEPPP), designed to provide a rules-based framework for managing fuel price volatility, enhancing transparency, and preventing anti-competitive practices within the supply chain.
Already, domestic airlines operating in the country are showing signs of shutting down as they grapple with a steep rise in aviation fuel costs, a development operators describe as unprecedented.
For instance, Ibom Air says the cost of fueling a single flight has surged dramatically from about ₦2. 1m in January to roughly ₦7.6m as of April 26, marking an increase of more than 350 percent in just a few weeks.
Same frustration and complaints also emanated from other airlines such as Air Peace, United Nigeria, Arik, Aero, etc.
Meanwhile, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has pegged aviation fuel prices as high as ₦2,037 per litre in Abuja. The regulator also set a Lagos band between ₦1,760 and ₦1,988 per litre.
According to the Authority, this intervention is to stabilise supply and pricing amid persistent volatility in Nigeria’s aviation sector.
In addition, the NMDPRA has directed energy marketers to sell directly to airline operators. This move is designed to cut out middlemen and reduce inflated costs within the supply chain. Therefore, the regulator expects improved efficiency, transparency and quicker access to fuel across airports.
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
