…Proposes crude oil allocation to local refiners as lasting fix to aviation sector’s deepening crisis
The Aviation Safety Roundtable Initiative (ASRTI), a Nigerian aviation watchdog, has called on the Federal Government to abandon what it describes as a wasteful and ineffective N60 billion airline subsidy scheme, urging instead a structural fuel reform programme that it says could dramatically lower airfares and unlock mass-market aviation across the country.
In a strongly worded statement issued on Sunday, 1 June 2026, ASRTI President Air Commodore (rtd.) Ademola Onitiju called the current state of Nigeria’s domestic aviation sector a “profound and protracted crisis,” with the cost of Jet A1 aviation fuel – the primary driver of airline operating costs – still hovering between N1,650 and N2,037 per litre.
According to ASRTI, the soaring price of Jet A1 fuel now accounts for nearly half of total airline operating expenses, compelling domestic carriers to raise ticket prices to levels that a significant proportion of Nigeria’s population of over 220 million people can no longer afford.
“A nation of over 220 million people should not continually operate an aviation market accessible only to a narrow segment of its population,” Onitiju said in the statement.
The group contends that the Federal Government’s response to this challenge has been fundamentally misdirected.
Rather than addressing the root cause, the government has disbursed N60 billion in invoice discounts to airlines – a policy ASRTI says has produced no measurable benefit either to the industry or to ordinary travellers.
“The defects are palpable,” the statement read. “Jet A1 prices have remained unchanged. Airline debts have not reduced. Neither have passengers enjoyed cheaper fares. The cargo logistics, tourism and hospitality sectors have not experienced any growth.”
The group further noted that the broader aviation ecosystem – encompassing airlines, regulatory agencies, concessionaires and ground handlers – received no structural relief from what it characterised as the “hollow” government handout.
As an alternative, ASRTI is proposing a Fuel-for-Stability Programme centred on the direct allocation of crude oil to local refiners on behalf of domestic airline operators.
The initiative, the group argues, would eliminate the N60 billion in wasteful expenditure, reduce the government’s overall cost exposure, and establish a stable, predictable fuel-pricing structure that would fundamentally transform the economics of Nigeria’s aviation sector.
“Whether the final feasible fuel price is N300 or slightly above is not the issue,” Onitiju said. “The grand strategy is to emplace a stable, predictable supply of crude to local refiners in order to dramatically lower operating costs, enable lower fares, higher passenger traffic, more profitable airlines, stronger aviation agencies, and a healthier, fiscally backed ecosystem.”
ASRTI was careful to clarify that the proposed programme would apply exclusively to domestic operators, ensuring that public resources are targeted where they are most needed.
Cheaper Fares as a Catalyst for Growth
Central to ASRTI’s argument is the proposition that reducing airfares is not merely a matter of consumer benefit, but a structural catalyst for broader economic expansion.
Lower ticket prices, the group contends, would drive passenger traffic growth, raise load factors, and generate the economies of scale that make commercial aviation commercially sustainable over the long term.
“Reduced airfares will result in a natural expansion of the market and sustainable sectoral growth,” the statement said, adding that deliberate, market-shaping policy reforms would make flying a mass-market activity in Nigeria and enhance the country’s global competitiveness.
Lessons from India, Turkey and Brazil
ASRTI drew on international precedents to bolster its case, pointing to India as a model of what structural fuel reforms can achieve.
India, the group noted, achieved some of the lowest domestic airfares in the world alongside explosive passenger traffic growth by stabilising fuel supply and prioritising structural reforms rather than piecemeal interventions.
Turkey, Indonesia and Brazil were also cited as countries that transformed their aviation sectors by focusing on affordability, volume growth and ecosystem-wide efficiency – approaches ASRTI says Nigeria should now emulate.
“Nigeria must learn from the examples of the United States, Latin America and Europe,” the statement read. “Our focus should be on ecosystem transformation, not isolated activities that bring doubtful benefits.”
Qualified Praise for Current Administration
Despite its sharp criticism, ASRTI acknowledged progress made under the current administration in restoring international aircraft lessors’ confidence in Nigeria’s aviation sector, as well as efforts to localise aircraft maintenance.
However, the group maintained that the government must be far more deliberate in designing policies that would grow the sector and catalyse national economic development.
“Nigeria’s overall national interest and economic survival should supersede other considerations by the political leadership,” Onitiju stated.
ASRTI concluded by asserting that its proposed model would cost the government less whilst delivering industry-wide recovery, improved affordability, and sustainable long-term growth – outcomes it says the current subsidy approach has singularly failed to produce.
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