Nigeria’s domestic and international airlines face potential service shutdowns from April 20 as the price of aviation fuel, JetA1, has surged to approximately N3,000 per litre. The warning comes from Tunji Oyebanji, Chief Executive of Energy Advisory and former Chairman of Mobil Nigeria, who said at least one carrier may have already suspended operations due to unsustainable fuel costs.
The crisis stems from both local supply constraints and tightening global markets, exacerbated by 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, leaving them more exposed to price volatility. In contrast, international airlines secure long-term supply contracts, offering greater price stability.
Financial pressures compound the issue. Aviation fuel transactions in Nigeria carry high credit risks for oil marketing companies, which often insist on cash payments—placing additional strain on airline working capital. Oyebanji also criticised some operators for excessive fare hikes during peak travel seasons, suggesting a need for business model reassessment.
Globally, the Iran-US-Israel conflict, which escalated on February 28, 2026, has disrupted JetA1 supplies from Middle Eastern refineries, pushing crude oil prices above $100 per barrel and driving up domestic fuel costs. In the UK, airlines have already reduced flights due to shortages. Locally, a significant portion of production from the Dangote Refinery is being exported to meet international demand, raising concerns about domestic supply adequacy.
Without urgent intervention, Nigeria’s aviation sector risks a major crisis driven by fuel scarcity and escalating costs.
