High Fuel Costs and FX Scarcity Push Nigerian Airlines Towards Crisis

Nigerian airlines are facing severe financial pressure from high aviation fuel costs, foreign-exchange shortages and multiple operating charges. Recent disruptions, including delays, emergency landings and regulatory actions over unpaid fees, have increased concern about the stability of domestic carriers. Operators reportedly owe more than ₦60 billion for Jet A1 fuel. Fuel can account for nearly half of an airline’s operating costs, while aircraft spare parts, maintenance checks and other critical services must be paid for in US dollars. Airlines also contend with the 5% Ticket Sales Charge, parking fees, ground-handling costs, security expenses and staff salaries. Without action on double taxation, fuel-price volatility and access to foreign exchange, more domestic airlines could be forced to suspend operations.

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