The Nigerian government is urging airlines to avoid suspending flights or raising prices.

The Minister of Aviation urged Nigerian Local airlines are avoiding suspending flights or raising prices, after airlines threatened to halt operations due to the sharp rise in jet fuel prices.

In a letter to Nigerian airlines, seen by Reuters, the minister acknowledged the pressure on airlines due to the high cost of jet fuel, but appealed for restraint to avoid wider economic disruption.

A quick and sustainable solution

He said the government is in contact with the sector and has scheduled an emergency meeting with regulators and stakeholders in Abuja on April 22 to find what he described as a quick and sustainable solution.

This comes just days after Nigerian airlines issued a warning that they would suspend all flights from April 20 unless exorbitant jet fuel prices were reduced, accusing the country's fuel distributors of artificially inflating prices.

The Airline Operators Association of Nigeria (AIO), which includes about 12 local airlines, sent a letter to the Major Energy Distributors Association of Nigeria (MEDAN) on April 14 complaining about jet fuel prices increasing by about 270 percent since late February.

Potential repercussions for the aviation sector

Companies have warned that raising ticket prices to keep up with fuel costs could lead to a decline in passenger numbers, while suspending flights would have wider repercussions including job losses, increased pressure on banks, and a decline in economic activity.

Jet fuel is one of the biggest cost items in Africa, representing between 30% and 40% of total operating expenses, compared to a global average of between 20% and 25%, making airlines on the continent more vulnerable to price fluctuations.

local supply crisis

Official data showed that Nigeria’s aviation sector consumes about 2.1 million liters of jet fuel per day, but Dangote Refinery, the main domestic producer, made no deliveries to the domestic market during March.

Conversely, Nigeria's exports of refined petroleum products rose significantly during the same period, raising questions about distribution priorities between the domestic market and exports.