Nigeria’s domestic and international airlines are facing the possibility of service shutdowns starting April 20, as the price of aviation fuel, JetA1, has surged to approximately N3,000 per litre. This warning was issued by Tunji Oyebanji, Chief Executive of Energy Advisory and former Chairman of Mobil Nigeria. He noted that at least one airline may have already suspended operations due to unsustainable fuel costs. The crisis is attributed to local supply constraints and tightening global markets, which have been exacerbated by the ongoing conflict in the Middle East involving Iran and the United States-Israel axis.
Oyebanji explained that domestic carriers, unlike their international counterparts, typically purchase fuel on a spot basis at airport tarmacs or depots. This practice leaves them more vulnerable to price volatility. In contrast, international airlines benefit from long-term supply contracts that provide greater price stability. The financial pressures on airlines further complicate the situation. Aviation fuel transactions in Nigeria carry high credit risks for oil marketing companies, which often require cash payments. This requirement places additional strain on the working capital of airlines.
Additionally, Oyebanji criticized some operators for implementing excessive fare hikes during peak travel seasons, suggesting that there is a need for a reassessment of their business models. On a global scale, the Iran-US-Israel conflict, which escalated on February 28, 2026, has disrupted JetA1 supplies from Middle Eastern refineries. This disruption has pushed crude oil prices above $100 per barrel, contributing to the rise in domestic fuel costs. In the UK, airlines have already reduced flights due to fuel shortages. Locally, a significant portion of production from the Dangote Refinery is being exported to meet international demand, raising concerns about the adequacy of domestic supply.
Without urgent intervention, Nigeria’s aviation sector risks facing a major crisis driven by fuel scarcity and escalating costs.
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