Market News
Nigerian airlines brace for shutdown as US–Iran conflict disrupts aviation fuel supply chains
by
Nigeria’s domestic aviation industry is edging toward a potential shutdown as operators grapple with a sharp and sustained spike in fuel costs, raising concerns about widespread disruptions to air travel and economic activity.
Nigerian airlines brace for shutdown as US–Iran conflict disrupts aviation fuel supply chains
- Nigeria's aviation industry is facing potential shutdown due to a sharp increase in jet fuel prices.
- The cost of Jet A1 fuel has risen by more than 300%, far outpacing global oil price increases.
- Geopolitical tensions and disruptions in global oil supply chains have worsened the crisis, impacting Nigeria's fuel-dependent aviation sector.
- Airline revenues are now unable to cover fuel costs, forcing at least one carrier to suspend operations and threatening job losses and connectivity.
The Airline Operators of Nigeria (AON) said the price of Jet A1 has skyrocketed from N900 per litre in late February to N3,300 per litre - an increase of more than 300%.
The group described the spike as “astronomical and artificial,” arguing it far exceeds the roughly 30% rise in global crude oil benchmarks.
Abdulmunaf Yunusa Sarina, AON president, issued the warning in a notice to fuel marketers, copied to top government officials including President Bola Tinubu and Aviation Minister Festus Keyamo.
ADVERTISEMENT
“For the past four weeks, airlines have endured this burden… however, the situation has now become unbearable and clearly unsustainable,” the notice said.
“Accordingly… all airlines in Nigeria will be compelled to suspend operations effective Monday, April 20, 2026,” the group warned, calling it a final appeal for urgent intervention.
Global oil shock deepens Nigeria’s aviation crisis
About 20 million barrels of oil, worth nearly $600 billion annually passed through the Strait of Hormuz daily in early 2023.
The crisis is being exacerbated by escalating tensions between the United States and Iran, which have disrupted global energy markets.
The reported closure of the Strait of Hormuz - a critical artery for global oil shipments, has significantly constrained fuel transportation, triggering supply shocks and price volatility worldwide.
For Nigeria, which relies heavily on imported refined petroleum products, the disruption has amplified domestic price pressures, particularly in the aviation sector.
However, questions are emerging over why the country’s growing domestic refining capacity, including output from the Dangote Refinery, has not yet fully translated into stable relief for the aviation fuel market, despite its increasing role in supplying jet fuel locally.
AON warned that airline revenues can no longer cover fuel costs alone, placing operators under severe financial strain. “Airlines are now facing existential threats, with serious consequences for the broader economy,” the group said.
The association also accused fuel marketers of “decimating” the industry, noting that at least one airline has already suspended operations since March.
While airlines could raise ticket prices to offset costs, AON cautioned that higher fares would likely suppress passenger demand. A full shutdown, however, would have wider implications from job losses to risks to national connectivity and security.
