- Ministry of Petroleum Resources and NNPCL to create a price-stabilisation framework for jet fuel
The House of Representatives has called on the Federal Government to urgently step in over the rising cost of aviation fuel, warning that domestic airlines are facing intense financial strain.
The call followed the adoption of a motion of urgent public importance moved on Tuesday, May 5, during plenary by Paschal Agbodike, who represents Ihiala Federal Constituency of Anambra State.
Presenting the motion, Agbodike said Aviation Turbine Kerosene remains one of the biggest cost burdens for airline operators, accounting for between 40 and 60 per cent of their total operating expenses.
He said, “airline operators are struggling for survival while also offering quality services together with the Nigeria Civil Aviation Authority to Nigerians amidst the spiralling costs.”
Agbodike warned that the mounting cost of operations is already forcing several domestic carriers to scale down services.
“The House is concerned that many domestic airlines have been forced to reduce their flight frequencies or ground aircraft entirely, leading to reduced capacity. The high cost of jet fuel, coupled with the impact of the foreign exchange liquidity crisis on the purchase of aircraft parts, has placed immense pressure on the balance sheets of Nigerian carriers, exposing them to potential collapse.
“We are concerned that the continued instability in jet fuel pricing, if not urgently addressed, could lead to the collapse of major domestic airlines, a scenario that would have devastating consequences for the national economy, employment, and regional integration.”
The motion received unanimous backing from lawmakers during plenary presided over by Deputy Speaker Benjamin Kalu.
Following deliberations, the House urged the Federal Government, through the Ministry of Petroleum Resources and the Nigerian National Petroleum Company Limited, to create a price stabilisation arrangement with domestic airlines to ensure more predictable jet fuel pricing.
Lawmakers also directed the House Committees on Aviation, Petroleum Resources (Downstream) and Finance to investigate the persistent rise in aviation fuel prices and report back within two weeks.
In addition, the House asked the Minister of Aviation and Aerospace Development, Festus Keyamo, to present an emergency roadmap within the same period outlining measures to reduce aviation fuel costs.
The lawmakers further called on the Central Bank of Nigeria to prioritise foreign exchange allocation for airline operators to ease the pressure on aircraft maintenance and day-to-day operations.
Aviation fuel prices in Nigeria have climbed sharply in recent years due to a combination of global crude oil volatility, limited local refining capacity, deregulation in the downstream petroleum sector, and persistent foreign exchange shortages.
Industry operators say aviation fuel prices have at times risen above N1,200 per litre, forcing domestic airlines to raise ticket fares, cut routes and, in some cases, suspend operations entirely.
Nigerian airlines threaten shutdown as Jet fuel price jumps to N3,300 per litre
Meanwhile, TheRadar earlier reported that the domestic airlines in Nigeria planned to suspend operations from Thursday, April 30, 2026, as operators warned that the soaring cost of aviation fuel has pushed the sector to the edge of collapse.
The planned shutdown, if carried out, could trigger major travel disruptions nationwide and leave thousands of passengers stranded.
Industry sources say local carriers are preparing to ground flights after talks with the Federal Government and fuel marketers failed to produce a workable solution to the worsening Jet A1 crisis.