House of Commons Urges Immediate Action on Rising Aviation Fuel Costs
The House of Commons has called on the federal government to swiftly address the surging cost of aviation fuel, emphasizing the severe operational strain faced by domestic airlines.
This resolution follows a motion of urgent public importance led by Pascal Agbodike, the representative for Ihiala Federal Constituency in Anambra State, during Tuesday’s plenary session.
Agbodike highlighted that Aviation Turbine Kerosene (ATK), commonly known as aviation fuel, accounts for a significant portion of operating costs for Nigerian airlines, representing 40 to 60% of total expenses. He stressed that this critical expenditure directly influences fare pricing and the sustainability of airline operations.
“Airlines are struggling to survive while collaborating with the Nigerian Civil Aviation Authority to ensure quality service,” he remarked, warning that ongoing price escalations are already impacting operations throughout the sector.
Agbodike noted that many domestic airlines have been compelled to reduce flight schedules or even ground their fleets entirely, resulting in diminished capacity. He added that the high costs of jet fuel, coupled with the foreign exchange liquidity crisis affecting the acquisition of aircraft components, are exerting immense pressure on Nigerian airlines’ financial health.
The representative cautioned that without immediate action, the aviation industry could face an even more dire crisis. He expressed concern that prolonged volatility in jet fuel prices could lead to the collapse of major airlines, triggering catastrophic consequences for the national economy, employment, and regional connectivity.
The motion received substantial support from fellow councilors during the plenary, which was overseen by Deputy Speaker Benjamin Cull. Following its approval, the House urged the Federal Government, particularly the Ministry of Petroleum Resources and the Nigerian National Oil Company, to develop a price stabilization framework to secure more predictable and manageable aviation fuel costs.
Furthermore, the House instructed the Aviation Committee, the Petroleum Resources (Downstream) Committee, and the Finance Committee to investigate the persistent rise in jet fuel prices and deliver a report within two weeks. They also called upon Aviation and Aerospace Development Minister Festus Keyamo to devise an emergency roadmap detailing specific measures to mitigate aviation fuel costs in a similar timeframe.
The MPs additionally requested that the Central Bank of Nigeria prioritize foreign exchange allocations for airlines, particularly for acquiring essential aircraft parts that ensure safe and efficient operations.
The recent spike in aviation fuel prices is attributed to a combination of global and domestic factors. International crude oil volatility, fuelled by geopolitical tensions and supply constraints, has led to higher prices for refined products worldwide. Domestically, Nigeria’s reliance on imported refined petroleum, combined with limited local refining capacity, renders the sector vulnerable to external shocks. The removal of fuel subsidies and widespread deregulation in the downstream oil sector have further contributed to price fluctuations.
The ongoing currency crisis has intensified these challenges, as airlines earn revenues in naira but purchase aviation fuel in dollars. Consequently, the continuous depreciation of the naira has led to substantial increases in operating costs. Reports indicate that aviation fuel prices can sometimes exceed ₦1,200 per liter, compelling airlines to raise fares, reduce routes, or even suspend services.
Stakeholders warn that without prompt intervention, the sustained pressure on the aviation sector could undermine air transport, with significant ramifications for trade, mobility, and economic development.
