BY OLAPEJU OLUBI
The Aviation Safety Roundtable Initiative (ASRTI) has urged the Federal Government to abandon what it described as ineffective financial support to airlines and instead adopt a crude-for-refining programme aimed at reducing the soaring cost of aviation fuel and lowering domestic airfares.
The group said the Nigerian aviation industry is facing a prolonged crisis driven largely by the high cost of Jet A1 fuel, which currently sells for between ₦1,650 and ₦2,037 per litre, accounting for nearly half of airlines’ operating expenses.
In a statement signed by its President, Air Commodore (rtd.) Ademola Onitiju, ASRTI argued that the escalating fuel costs have forced airlines to raise ticket prices beyond the reach of many Nigerians, limiting access to air travel and constraining growth across the aviation value chain.
The group criticised the Federal Government’s reported ₦60 billion invoice discount granted to airlines, claiming the intervention failed to deliver tangible benefits to operators, passengers or the broader economy.
According to ASRTI, despite the support package, Jet A1 prices have remained high, airline indebtedness has not significantly declined, and passengers have not benefited from cheaper fares.
It added that related sectors such as cargo logistics, tourism and hospitality have also not recorded the expected growth, while aviation agencies, concessionaires and ground handling companies received no meaningful relief from the intervention.
To address the challenge, ASRTI proposed a Fuel-for-Stability Programme that would involve the direct allocation of crude oil to local refiners for the production of aviation fuel dedicated to domestic airlines.
The organisation said the arrangement would provide a predictable and stable supply of Jet A1, significantly reduce operating costs and create a more sustainable pricing framework for the industry.
“Whether the final fuel price settles at ₦300 per litre or slightly above is not the central issue. The objective is to establish a stable and predictable supply chain capable of reducing costs, lowering airfares and strengthening the entire aviation ecosystem,” the group said.
ASRTI maintained that lower ticket prices would stimulate passenger demand, improve aircraft load factors and drive economies of scale necessary for the long-term sustainability of domestic aviation.
The group noted that with a population exceeding 220 million, Nigeria’s aviation market should not remain accessible only to a small segment of the population.
It argued that affordable air travel would naturally expand the market, increase passenger traffic and support broader economic growth.
Drawing comparisons with international markets, ASRTI cited India, Turkey, Indonesia and Brazil as examples of countries that transformed their aviation sectors through fuel supply stability, affordability-focused policies and structural reforms rather than short-term interventions.
While commending the Federal Government’s efforts to restore the confidence of global aircraft lessors and promote local aircraft maintenance capabilities, the group stressed the need for deliberate market-shaping policies that would make air travel more affordable and globally competitive.
ASRTI said the country’s economic interests should take precedence in policy formulation, adding that aviation sector reforms could serve as a catalyst for wider economic development.
The organisation insisted that its proposed model would cost the government less than existing interventions while delivering broader industry recovery, improved affordability and sustainable growth across the aviation sector.
Olapeju is a journalist and aviation reporter.
