Nigerian Airlines Avert Shutdown as Government Steps In on Jet Fuel Crisis
Nigeria’s domestic aviation sector has narrowly avoided a nationwide shutdown after urgent intervention by federal authorities enabled airlines to sustain operations despite a sharp surge in aviation fuel costs. Carriers including Air Peace, Max Air, and Rano Air continued scheduled flights, defying earlier threats by the Airline Operators of Nigeria to suspend services over unsustainable […] ظهرت المقالة Nigerian Airlines Avert Shutdown as Government Steps In on Jet Fuel Crisis أولاً على African Percentions.
Nigeria’s domestic aviation sector has narrowly avoided a nationwide shutdown after urgent intervention by federal authorities enabled airlines to sustain operations despite a sharp surge in aviation fuel costs.
Carriers including Air Peace, Max Air, and Rano Air continued scheduled flights, defying earlier threats by the Airline Operators of Nigeria to suspend services over unsustainable operating conditions.
Emergency measures prevent disruption
The crisis was defused following high-level negotiations involving the Ministry of Aviation and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
As part of immediate relief efforts, the federal government directed fuel marketers to extend a 30-day credit facility to airline operators and implement direct fuel supply arrangements, bypassing intermediaries accused of inflating prices.
These steps aim to provide short-term liquidity and stabilize flight operations while broader solutions are explored.
Jet fuel prices reach critical levels
Jet A1 prices have surged to between ₦1,760 and ₦2,037 per litre. Industry sources say fueling a single domestic flight can exceed ₦7.6 million, significantly straining airline finances.
Fuel now represents the largest share of operating costs, raising concerns about long-term sustainability.
Global oil shock
The domestic spike is linked to global volatility, with Brent crude exceeding $126 per barrel. Ongoing geopolitical tensions, including disruptions in the Strait of Hormuz, have further tightened supply chains.
Limited local relief
Although refining capacity has expanded, domestic supply remains constrained. The Dangote Refinery has increased jet fuel output, but export incentives have limited local availability.
Critical infrastructure under strain
Air travel remains essential due to security risks on highways, including kidnapping and banditry. Analysts warn that prolonged disruption would affect economic activity and connectivity.
Monitoring compliance
Authorities are expected to enforce compliance with the credit directive, amid concerns over potential manipulation or supply restrictions by fuel marketers.
The AON described the arrangement as an emergency stabilization measure, noting that long-term sustainability depends on deeper reforms.
Outlook
With global markets still volatile, uncertainty persists. The current reprieve may stabilize operations temporarily, but structural challenges remain unresolved.
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