Nigeria’s domestic aviation sector is facing mounting pressure as the rising cost of Jet A1 fuel continues to dominate airline operating expenses and drive airfares beyond the reach of many travellers.
Jet A1 prices currently range between ₦1,650 and ₦2,037 per litre, accounting for nearly half of total airline operating costs and significantly impacting fare structures across domestic routes.
Industry stakeholders argue that the situation has worsened affordability challenges, reducing passenger demand and placing strain on airlines, cargo operators, tourism, and related sectors.
Critics have also pointed to the Federal Government’s ₦60 billion invoice discount intervention for airlines, describing it as ineffective in addressing the structural challenges facing the sector. According to industry concerns, the support has not translated into lower fuel prices, reduced airline debt, or cheaper airfares for passengers, nor has it significantly boosted aviation-linked industries such as logistics, hospitality, and tourism.
The Aviation Safety Roundtable Initiative (ASRTI) has now proposed an alternative policy framework aimed at achieving long-term stability in the sector.
The group recommends a Fuel-for-Stability Programme that would involve allocating crude oil directly to local refiners to ensure a more stable and predictable Jet A1 supply chain. According to proponents, this approach would eliminate what they describe as inefficient subsidy-style interventions and reduce overall government exposure while improving pricing dynamics in the sector.
The proposal argues that achieving a lower and more stable fuel price is less important than ensuring consistency and predictability in supply, which it says would enable airlines to plan better, reduce operational uncertainty, and improve efficiency across the aviation ecosystem.
Stakeholders supporting the model maintain that lower fuel costs would not only reduce airfares but also expand market participation by increasing passenger demand, improving load factors, and strengthening airline profitability.
They further argue that Nigeria, with a population of over 220 million, has the potential for a far larger aviation market if pricing barriers are reduced, enabling air travel to shift from a luxury service to a mass transport option.
Supporters of the reform have cited international examples, noting that countries such as India, Turkey, Indonesia, and Brazil have recorded significant aviation sector growth through structural reforms that prioritised fuel stability, affordability, and market expansion.
While acknowledging recent efforts by the government to restore confidence among aircraft lessors and support local maintenance capacity, industry advocates insist that broader and more deliberate policy reforms are needed to unlock sustained sectoral growth.
They argue that aviation policy should focus on ecosystem-wide transformation rather than isolated financial interventions, adding that a more integrated approach could enhance competitiveness and stimulate economic activity across multiple sectors.
According to proponents, a properly implemented Fuel-for-Stability model would cost the government less in the long term while delivering wider benefits, including improved affordability, increased passenger traffic, and stronger overall industry performance.
The ongoing debate highlights growing pressure on policymakers to address structural inefficiencies in Nigeria’s aviation sector as stakeholders call for reforms that balance fiscal responsibility with long-term industry sustainability.
