Keyamo Reacts to Airlines’ Planned Shutdown, Speaks on Fare Hikes in Nigeria
- Festus Keyamo has urged airlines not to suspend operations despite rising aviation fuel costs
- Airline Operators of Nigeria warned that flights may stop from April 20 due to high Jet A1 prices
- The minister cautioned that fare increases or shutdowns could negatively affect the economy
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Minister of Aviation and Aerospace Development, Festus Keyamo, has called on domestic airlines to reconsider plans to suspend operations amid the sharp increase in aviation fuel prices.
His appeal follows a warning by the Airline Operators of Nigeria that local carriers may halt flights from April 20 due to escalating costs of Jet A1 fuel.
Source: Getty Images
Airlines raise concerns over fuel price surge
According to the operators, the price of Jet A1 has risen significantly from N900 per litre as of February 28 to about N3,300 per litre, marking an increase of more than 300 per cent.
The group explained that adjusting ticket fares to reflect the higher fuel cost could discourage passenger demand, while suspending operations could have broader consequences for jobs, financial institutions, and national security.
Minister cautions against fare hikes and shutdown
In a letter addressed to the AON leadership on Thursday, Keyamo advised airlines to exercise caution in reviewing ticket prices, The Cable reported.
He noted that any immediate increase in fares could place additional financial strain on passengers, reduce travel demand, and limit access to air transport for many Nigerians.
The minister also urged operators to reconsider any planned suspension of services, warning that such action could disrupt economic activities, weaken public confidence, and affect ongoing reforms in the aviation sector.
FG plans emergency meeting with stakeholders
Keyamo stated that the federal government is aware of the challenges facing the industry and is taking steps to address them.
He disclosed that a high-level emergency meeting involving key stakeholders and regulatory bodies has been scheduled for April 22, 2026, in Abuja to find practical and lasting solutions.
The minister commended airline operators for maintaining services despite the difficult operating environment.
He added that the administration of Bola Tinubu views aviation as a critical sector and is continuing reforms aimed at supporting the growth and sustainability of domestic airlines.
Source: Getty Images
Local flight tickets may hit N200,000
Legit.ng earlier reported that the price of Jet A1, also known as aviation fuel, has jumped sharply following rising tensions in the Middle East involving the United States, Israel, and Iran.
Aviation fuel prices have surged to between N1,500 and N1,600 per litre following rising tensions in the Middle East. The increase of over 53 per cent is expected to force airlines to raise domestic ticket prices from around N150,000 to between N185,000 and N200,000.
Industry experts say fuel now accounts for up to 45 per cent of airline operating costs, putting significant financial pressure on airlines
Source: Legit.ng
