Talks aimed at tackling the rising cost of aviation fuel have ended without a breakthrough after a high-level meeting convened by the Minister of Aviation and Aerospace Development, Festus Keyamo.
The meeting brought together the Airline Operators of Nigeria, fuel marketers and regulators in what marked a rare direct engagement between airlines and suppliers over the escalating price of Jet A1.
Briefing journalists after the session, Keyamo admitted that no agreement was reached but expressed optimism that ongoing talks could yield results within days.
“We had frank discussions on all sides. The airlines explained the pressure they are facing, while marketers also laid out their challenges. We are determined to find a middle ground,” he said.
The sharp rise in aviation fuel prices, reportedly close to 300 per cent, has placed severe strain on domestic airlines, sparking concerns over higher airfares and potential disruption of flight services.
Keyamo warned that operators are under intense pressure. “The airlines are already stretched. Continuing under the current pricing structure will be very difficult without some adjustments,” he said.
To move negotiations forward, stakeholders agreed to set up smaller teams to continue discussions and work towards a pricing arrangement acceptable to all parties.
The minister, however, emphasised that market deregulation does not preclude oversight.
“A deregulated market is not a free-for-all. If there are issues of irregularities or collusion, we will investigate thoroughly,” he added.
Also speaking, Chairman of Air Peace, Allen Onyema, attributed the surge partly to global geopolitical developments but noted that Nigeria’s situation is unusually severe.
“In other parts of the world, increases are around 70 per cent, but here we are seeing between 250 and 270 per cent. That is not normal,” Onyema said.
He cautioned that airlines may be forced to take drastic steps if the situation persists.
“If nothing changes within the next seven days, domestic airlines may have no option but to suspend operations. This is about survival,” he warned.
The outcome of the ongoing negotiations is expected to determine whether the aviation sector can avoid a potential shutdown and stabilise ticket prices.