FG Urges Airlines to Suspend Fare Hike Plans, Averts Shutdown Threat

The Federal Government has appealed to airline operators to shelve plans to increase airfares or suspend flight operations amid the sharp rise in aviation fuel costs.

The call was made in a letter addressed to the Airline Operators of Nigeria and signed by the Minister of Aviation and Aerospace Development, Festus Keyamo.

The government acknowledged the surge in the price of Jet A1 fuel, which reportedly rose from ₦900 per litre as of February 28, 2026, to about ₦3,300 per litre by April 16  an increase of over 300 per cent.

Despite the pressure on operators, the minister warned that any immediate hike in ticket prices would worsen the burden on Nigerians, reduce demand for air travel, and limit accessibility.

Keyamo also urged airlines to reconsider plans to halt operations, noting that such a move could disrupt economic activities, weaken public confidence, and reverse gains recorded in the aviation sector.

To address the crisis, the Federal Government has scheduled an emergency stakeholders’ meeting for April 22, 2026, in Abuja.

The meeting is expected to bring together regulators, airline operators, and other key players to find a sustainable solution.

Airlines under the AON had earlier warned of a possible nationwide shutdown from April 20, citing what they described as an “astronomical and unsustainable” increase in fuel costs.

The group argued that the spike far exceeds global trends, noting that crude oil prices have risen by only about 30 per cent within the same period.

According to the operators, revenues are no longer sufficient to cover the cost of fuel, with at least one airline already suspending operations since March 13 due to the situation.

However, the Major Energies Marketers Association of Nigeria attributed the price surge to global geopolitical tensions, particularly in the Middle East, which have disrupted supply chains for refined petroleum products.

The association also questioned claims that aviation fuel costs had risen to ₦3,300 per litre, stating that its market survey indicates more competitive pricing.

It advised airlines to adopt long-term supply contracts instead of relying on spot purchases to stabilise costs.

Reaffirming government commitment to the sector, Keyamo said the administration of President Bola Ahmed Tinubu considers aviation a critical national asset essential for trade, national security, job creation, and economic integration.

He assured operators that their concerns are receiving urgent attention and that steps would be taken to stabilise the industry.