By Chidi Ugwu
Efforts to avert a shutdown of Nigeria’s domestic aviation sector over the soaring cost of Jet-A1 fuel have hit a stalemate, despite 48 hours of intensive negotiations between the Federal Government and key industry stakeholders.
Briefing journalists in Abuja on Thursday after hours of closed-door talks, Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed that Bola Ahmed Tinubu has approved a 30 per cent waiver on debts owed by airlines to federal aviation agencies as part of emergency relief measures.
- Advertisement -
The waiver covers liabilities to agencies such as the Nigerian Civil Aviation Authority and the Nigerian Airspace Management Agency.
Keyamo said the concession is aimed at easing the financial burden on operators grappling with spiralling fuel costs, stressing that it should not be seen as a subsidy but a targeted intervention.
Despite the presidential directive, negotiations ended without a final agreement, with parties acknowledging deep divisions over Jet-A1 pricing. As a result, stakeholders resolved to establish specialised focal teams to harmonise positions and develop a workable pricing framework.
“The focal teams will immediately engage to arrive at fair and reasonable pricing,” the minister said, warning that airlines are being pushed to the brink by escalating operational costs.
He added that although Nigeria operates a liberalised market, regulators would scrutinise pricing structures to guard against excessive margins and anti-competitive practices.
The talks, which brought together airline operators, fuel marketers and regulators, were convened after carriers threatened to suspend operations over what they described as unsustainable fuel prices.
Vice President of the Airline Operators of Nigeria, Allen Onyema, said local operators are facing a far harsher pricing environment than their global counterparts, with aviation fuel costs in Nigeria rising by over 200 per cent compared to about 70 per cent elsewhere.
“No airline can continue under these conditions. The cost of fuel alone is overwhelming operations,” Onyema warned, adding that a shutdown could occur within days without urgent intervention.
However, he expressed cautious optimism that the President’s involvement and the work of the focal teams could still produce a resolution.
Also speaking, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Saidu Aliyu Mohammed, said the agency would review current pricing templates and engage marketers to ensure a balance between sustainable supply and airline viability.
With negotiations now shifting to technical teams, industry watchers say the coming days will be decisive in determining whether Nigeria can avoid a crippling disruption to domestic air travel.
