Nigerian airlines face mounting debts as fuel costs surge
Nigerian airlines are struggling financially due to soaring Jet A1 fuel prices, forcing them to borrow over N60bn from local banks to keep operations running. Roland Iyayi of the Airline Operators of Nigeria (AON) highlighted the severe impact of high fuel costs and insufficient government intervention. Airlines are unable to increase ticket prices enough to cover rising expenses, leading to growing debts and operational losses. The situation has been worsened by multiple taxes and a lack of effective relief measures from the government.
TLDR
- Nigerian airlines have borrowed more than N60bn from local banks to purchase aviation fuel, according to Roland Iyayi of the AON.
- The AON threatened to shut down operations in February due to escalating fuel prices, leading to intervention by the Minister of Aviation and Aerospace Development, Festus Keyamo.
- A meeting in April 2026 between the AON, government officials, and fuel marketers aimed to address the crisis but did not result in substantial relief for airlines.
- The Federal Government announced a 30 per cent relief on airlines’ debts and called for negotiations on Jet A1 pricing, but operators say financial pressures remain.
- Airlines are unable to sufficiently increase ticket fares, and high fuel prices combined with multiple taxes continue to drive up operating costs, threatening the sustainability of domestic air services.
