In early 2022, the Nigerian aviation industry entered one of its most turbulent periods in recent memory. The cost of Jet A1 fuel—the lifeblood of air transport—experienced an unprecedented spike, threatening the financial stability of domestic carriers. Triggered largely by global oil market disruptions following Russia’s invasion of Ukraine, the sudden escalation in fuel prices placed enormous strain on Nigerian airlines that were already grappling with infrastructure deficiencies, currency volatility, and debt burdens.
Prior to this crisis, the average cost of aviation fuel hovered around ₦190 per litre. However, within just a few months, prices surged to over ₦700 per litre. For carriers operating in a country where fuel constitutes as much as 40–50% of total operating costs, this fourfold increase proved unsustainable.
The Airline Operators of Nigeria (AON), a collective body representing both private and commercial airlines in the country, sounded the alarm in May 2022. They warned that if the situation persisted without government intervention, many airlines could be forced to suspend operations. The AON noted that the cost of operating a one-hour domestic flight had risen from ₦60,000 to nearly ₦120,000—nearly doubling overnight.
Flight Suspensions and Cascading Operational Setbacks
As the crisis deepened, passengers began to experience the ripple effects. Delayed takeoffs, last-minute cancellations, and erratic flight schedules became the norm across major routes connecting Lagos, Abuja, Port Harcourt, Kano, and other regional hubs. Several airlines, including Air Peace, Dana Air, Max Air, and Arik Air, reported fuel shortages so severe that they were forced to reduce the frequency of their daily services or ground specific aircraft entirely.
On May 7, 2022, the AON announced its intention to halt all domestic flight operations starting May 9. Although a last-minute intervention by the Federal Government averted a complete shutdown, the warning alone sent shockwaves across the travel sector. Even after flights resumed, carriers continued to operate at reduced capacity due to fuel rationing and financial losses.
Passengers were not only inconvenienced by delays and cancellations but also faced increased ticket prices. Fares on some routes more than doubled, pricing out many Nigerians who had previously relied on air travel as a faster and safer alternative to road transportation plagued by security threats.
Foreign Exchange Shortages Add to the Burden
Fuel prices were only part of the problem. The aviation sector in Nigeria is highly dependent on imports—not just for fuel, but also for aircraft spare parts, navigation systems, and maintenance equipment. These items must be paid for in foreign currency, primarily U.S. dollars.
However, with the Central Bank of Nigeria struggling to maintain a stable foreign exchange policy, airlines found it increasingly difficult to access dollars at official rates. Instead, they were forced to buy currency on the parallel market at much higher rates, further increasing their cost base.
This double burden of high fuel prices and forex scarcity crippled the ability of airlines to meet operational obligations, settle debts, and service their aircraft. Many operators began defaulting on maintenance schedules, while others postponed critical upgrades and purchases.
Infrastructure Constraints and Regulatory Hurdles
Compounding the crisis was the deteriorating state of aviation infrastructure in the country. Several major airports, including the Murtala Muhammed Airport in Lagos, underwent runway repairs that led to temporary closures, resulting in longer taxi times and increased fuel burn. For an industry already pressed by fuel inflation, these inefficiencies only made matters worse.
Additionally, the fuel distribution system within Nigeria is highly inefficient. Aviation fuel is often transported by road from distant depots to airports, increasing the risk of contamination, theft, or spillage. At various times in 2022 and 2023, contaminated fuel was reported at certain terminals, forcing aircraft inspections and delays for safety reasons.
Airlines Struggle to Stay Afloat Amid Mounting Losses
Dana Air provides a poignant case study. In July 2022, the Nigerian Civil Aviation Authority (NCAA) suspended its operations citing financial instability and concerns over safe operations. While the airline eventually returned to the skies in November that year, the episode underscored the fragility of the local aviation industry under economic pressure.
Other carriers, such as Azman Air and Overland Airways, also reported financial difficulties, scaling down their operations or struggling to maintain consistent flight schedules. For smaller regional airlines with fewer aircraft and limited reserves, the combination of high costs, delayed payments from government contracts, and poor passenger demand spelled disaster.
Government Interventions and Industry Advocacy
In response to escalating fears of an industry-wide collapse, the Nigerian government announced temporary palliative measures. These included the release of emergency aviation fuel supplies and the promise of more flexible foreign exchange access for airline operators. However, most airline executives viewed these actions as stopgap solutions rather than systemic reforms.
The AON continued to advocate for more comprehensive interventions, such as:
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The introduction of fuel price stabilization funds.
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Tax waivers for imported aircraft parts.
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Dedicated forex windows for the aviation sector.
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Investment in domestic refining capacity to reduce fuel import dependency.
Despite repeated engagements with the Ministry of Aviation and other stakeholders, many of these proposals remained on paper.
Public Frustration and Changing Travel Habits
For travelers, the situation became increasingly frustrating. Business executives, tourists, and students were forced to endure erratic service or shift to alternative means of travel—often road journeys that posed security risks. Others cancelled travel plans altogether due to rising costs.
The average price for a return ticket on domestic routes increased to over ₦150,000 by mid-2023, far beyond the reach of the average Nigerian worker. Travel agencies also reported a decline in bookings, especially for non-essential trips.
Outlook: Can the Industry Recover Without Structural Reform?
As of 2025, the situation has not fully stabilized. Although global oil prices have cooled somewhat, Nigerian airlines continue to face lingering challenges from foreign exchange instability, regulatory uncertainty, and underinvestment in infrastructure.
Industry experts warn that without urgent reforms, the aviation sector may suffer long-term damage. Key recommendations include:
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Establishing fuel hedging mechanisms to mitigate global price volatility.
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Expanding Nigeria’s refining capacity to reduce fuel import dependency.
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Streamlining regulatory procedures to enhance operational efficiency.
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Developing policies to support airline consolidation or public-private partnerships for sustainability.
The potential of Nigeria’s aviation sector is enormous, given its large population and growing middle class. However, unless the government and private sector act decisively, the industry risks a prolonged downturn that could set back decades of progress.
Conclusion
The aviation crisis triggered by the spike in jet fuel prices exposed the systemic weaknesses within Nigeria’s air transport sector. While airlines managed to avoid total collapse, the scars of 2022 and 2023 remain fresh. Flight delays, cancellations, and rising fares continue to challenge both operators and passengers. Without meaningful policy shifts and strategic investments, the industry may remain in turbulence for years to come.
