Nigeria’s domestic airlines are receiving some relief from aviation-fuel prices, but expensive financing and other operating costs continue to squeeze carriers, limiting their ability to reduce fares or expand operations.
On August 9, 2026, PUNCH reported that some Nigerian airlines owed more than ₦60 billion to local banks for aviation-fuel purchases, citing Roland Iyayi, a member of the Board of Trustees of the Airline Operators of Nigeria (AON). Iyayi said the borrowing reflected the severe financial pressure facing operators.
The development comes after Dangote Petroleum Refinery reduced Jet A1 prices twice.
On May 19, 2026, the refinery announced a reduction in its Jet A1 price to ₦1,650 per litre from ₦1,750, alongside a 30-day interest-free credit facility for marketers and airline operators, subject to bank guarantees.
On June 20, 2026, Premium Times reported that Dangote Refinery had cut its Jet A1 gantry price further to ₦1,450 per litre. The report said the latest reduction came days after the refinery had also reduced its petrol ex-depot price.
Yet the lower refinery price has not eliminated airlines’ financial difficulties.
Air Peace Chairman and Chief Executive Officer Allen Onyema said in an interview with Arise Television on June 23, 2026, reported by Premium Times on June 24, that Nigerian airlines had been forced to borrow heavily to purchase fuel. Onyema said the cost of operating a flight had risen from about ₦3 million to between ₦12 million and ₦13 million, while local financing could carry interest rates of 29% to 33%.
George Uriesi, managing director of Ibom Air, offered a different emphasis in an interview published by The Guardian in July 2026. Uriesi identified high finance costs as a major constraint on Nigerian airlines, arguing that expensive aircraft financing was eroding airline earnings.
The pressure extends beyond fuel and financing. Airlines also face aircraft maintenance costs, airport and regulatory charges and other expenses that are difficult to reduce quickly.
The result is a difficult pricing equation. Carriers need fares high enough to cover their costs, but sharp fare increases risk weakening demand in an economy where consumers and businesses remain under pressure.
Nigeria’s aviation challenge, therefore, is no longer simply about securing Jet A1. Even when refinery prices fall, airlines can remain financially stretched if the cost of borrowing, maintaining aircraft and running their networks remains high.
For passengers, that means cheaper fuel at the refinery may not immediately translate into cheaper tickets. For airlines, it means the industry still needs a broader reduction in its cost base before lower fuel prices can translate into sustainable profitability.
