Mounting pressures within Nigeria’s aviation industry have triggered a high-level appeal to President Bola Ahmed Tinubu and key arms of government, as sector leaders warn that spiralling fuel costs and deepening financial distress could push airlines to the brink of collapse if urgent measures are not implemented.
In a comprehensive letter addressed to the Presidency, the National Assembly, and the Ministry of Aviation and Aerospace Development, industry figures under the umbrella of Aviation Safety Round Table Initiative (ASRTI) described the current situation as a “systemic emergency,” driven primarily by the sharp escalation of Jet A1 aviation fuel prices and compounded by liquidity constraints across the sector.
The correspondence, jointly signed by the President and General Secretary of ASRTI – Air Commodore (rtd) Ademola Onitiju and Olumide Fidel Ohunayo, painted a stark picture of an industry under siege, noting that domestic fuel prices have diverged significantly from international benchmarks over recent months, thereby placing unsustainable pressure on airline operations.
According to the stakeholders, a mid-April global benchmark of approximately $184.63 per barrel translates to about N1,559 per litre at prevailing exchange rates.
However, local depot prices surged dramatically from around N900 per litre in February to as high as N3,300 per litre by mid-April. This disparity, they argued, goes beyond normal market fluctuations and reflects a widening domestic pricing imbalance.
“The evidence is clear and deeply concerning,” the letter stated. “While global indices provide a baseline, the local spread has expanded to levels that threaten the survival of airlines and, by extension, the aviation ecosystem.”
The appeal further highlighted a cascading chain of financial pressures affecting all segments of the industry. Following the Federal Government’s introduction of debt concessions for aviation agencies, similar relief demands have emerged from other stakeholders, including airport operators, concessionaires, and ground handling companies.
Ground handlers, in particular, are said to be considering service disruptions over unpaid debts exceeding N9 billion, raising fears of operational paralysis at airports nationwide.
Despite these widespread challenges, the signatories emphasised that airlines remain the cornerstone of the aviation value chain, warning that their collapse would trigger a total breakdown of the system.
“Without airlines, there will be no passenger traffic, no revenue streams for agencies, and no business for service providers,” the stakeholders cautioned. “The entire ecosystem depends on their survival.”
To address the crisis, the letter proposed a structured and time-bound intervention framework, beginning with a corrective mechanism for Jet A1 pricing.
This would involve the Federal Government securing a six-month supply of aviation fuel at negotiated parity rates to offset the financial shock experienced between February and April, followed by a short-term stabilisation phase.
The stakeholders were careful to distinguish this proposal from a subsidy, describing it instead as a temporary parity-restoration initiative aimed at correcting market distortions.
They stressed that the mechanism must be transparent, subject to independent auditing, and publicly reconciled to ensure accountability.
In parallel, the appeal called for an emergency financial support package for airlines, including low-interest bridge financing and working capital guarantees. These funds, it noted, should be strictly conditional, tied to operational benchmarks such as safety compliance, staff remuneration, and uninterrupted service delivery.
Airlines would also be required to present detailed plans outlining how the funds would be used to settle or restructure verified liabilities owed to fuel suppliers, ground handlers, and regulatory agencies.
Acknowledging the interconnected nature of the aviation ecosystem, the stakeholders also proposed targeted support for other industry players, including concessionaires and ground handling firms.
Suggested measures include temporary rent deferrals, liquidity support, and limited debt restructuring – potentially involving a 30 per cent reduction on certain verified receivables.
However, the letter emphasised that such interventions must be applied judiciously and accompanied by safeguards to protect workers, including guarantees for wages and severance where necessary.
To ensure credibility and effective implementation, the stakeholders recommended the establishment of an independent reconciliation mechanism to oversee all financial interventions. This body would be responsible for processing payments, validating claims, and issuing concise reconciliation statements to beneficiaries.
An independent auditor, they added, should certify the outcomes at the end of the intervention period, while an ombudsman would provide oversight to maintain fairness and public trust.
“No entity receiving support should compromise on safety, maintenance, or regulatory compliance,” the letter stressed, underscoring the need to uphold operational standards even amid financial strain.
Looking beyond immediate stabilisation, the stakeholders advocated sweeping reforms to address structural inefficiencies within the sector. Chief among these is a comprehensive review of aviation-related charges, which they argue inflate ticket prices and undermine competitiveness.
They proposed engaging a global advisory firm to audit all fees – ranging from airport and navigation charges to ground handling tariffs – with a view to eliminating duplications and aligning Nigeria’s cost structure with international best practices.
Additionally, the letter called for the establishment of a National Energy Price Protection Programme to manage fuel price volatility, enhance transparency, and address anti-competitive practices.
The Federal Competition and Consumer Protection Commission was identified as a key institution to lead investigations into pricing irregularities.
As part of a broader recovery strategy, the stakeholders unveiled a medium-term vision dubbed “Fly Nigeria, Fly,” aimed at revitalising the aviation sector and unlocking its economic potential.
The initiative would focus on expanding connectivity, stimulating passenger demand, and supporting infrastructure development through public-private partnerships.
It also envisions increased investment in cargo logistics, cold-chain systems, and local maintenance, repair and overhaul (MRO) facilities, alongside efforts to strengthen pilot training and promote domestic aircraft leasing.
In their appeal, the industry leaders issued a stark warning about the consequences of delayed action, stressing that the aviation sector is a critical driver of economic activity and national connectivity.
“The cost of inaction will far exceed the cost of decisive intervention,” they stated. “The path forward is clear – stabilise the airlines, protect the ecosystem, restore fair pricing, and implement reforms that will secure the future of Nigerian aviation.”
With the crisis deepening and industry players sounding the alarm, attention now turns to how swiftly the Federal Government will respond to what many consider one of the most pressing challenges facing Nigeria’s transport sector today.
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