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Airlines in Nigeria are facing rising operational costs as the price of aviation fuel continues to surge, with Jet A1 now selling at N1,835 per litre in Kano, N1,820 in Abuja, N1,815 in Port Harcourt, and N1,780 in Lagos.
Industry experts warn that the steep fuel prices are likely to trigger higher airfares, potentially reducing passenger traffic, particularly among leisure travellers.
The spokesman for the Airline Operators of Nigeria, Prof. Obiora Okonkwo, said any fare adjustments would follow regulatory approval from the Nigeria Civil Aviation Authority.
“As regards Nigeria, before the war we were getting aviation fuel at about N1,000 per litre. Now the last fuel we had this evening was going for about N1,800. We are still working out how to manage this,” he said in an interview with Arise TV.
Okonkwo noted that airlines must submit any proposed fare changes to the regulator at least two weeks before implementation, and that the current low travel season following the Christmas period has further complicated planning.
He described the fuel price increase as “astronomical” but inevitable due to global market disruptions, particularly geopolitical tensions affecting crude oil production.
Aviation analyst Capt. Samuel Caulcrick attributed the surge in Jet A1 prices to Nigeria’s dependence on the dollar for petroleum transactions, even though the country produces fuel locally.
“If not for the dollar, Jet A1 would be around N900. Both suppliers and refiners, including the Dangote Refinery, must convert naira proceeds into dollars to purchase crude at international rates,” he said, adding that failure to do so risks operational disruptions for airlines.
Caulcrick noted that interventions by the Central Bank of Nigeria have helped prevent a rapid naira depreciation, which would have pushed aviation fuel prices even higher.
“The high cost of fuel will inevitably translate into higher ticket prices. Business travellers may not be affected, but leisure travellers will feel the impact. Lower affordability could reduce seat occupancy and strain airline revenues,” he said.
The analyst urged the CBN to maintain measures to stabilise the naira, stressing that a stronger local currency would help reduce dollar-related fuel costs and limit airfare increases.
