A critical meeting held yesterday by Nigeria's Minister of Aviation and Aerospace Development, Festus Keyamo, involving key industry players including the Airlines Operators of Nigeria (AON), oil marketers, and regulators, concluded without an agreement on how to mitigate the escalating cost of aviation fuel (Jet A1).

Minister Keyamo, addressing journalists after the discussions, disclosed that consultations would persist for another 48 to 72 hours in a bid to formulate a viable strategy to address the nearly 300 percent increase in aviation fuel prices. He acknowledged the immense strain this current pricing structure places on airline operators, cautioning that they might be compelled to raise airfares significantly to maintain operational viability.

The meeting, sanctioned by President Bola Tinubu, represented the first direct engagement between airline operators and fuel marketers. Attendees included representatives from the AON, chief executives of major airlines, oil marketers, and regulators from the petroleum sector, with the Permanent Secretary of the Ministry of Petroleum Resources leading their delegation. Keyamo characterized the discussions as frank, with each party articulating their specific challenges. Airlines voiced profound concerns over the unsustainable fuel expenditures, while marketers highlighted their own operational difficulties.

"We meticulously examined the pricing margins to ascertain if any profiteering or unwarranted price inflation was occurring," Keyamo stated. "The marketers elucidated the obstacles they confront, while the airlines presented their own viewpoint." To resolve the impasse, all parties consented to designate focal persons who would intensively engage over the forthcoming days to establish a fair and equitable pricing framework.

The Minister issued a stark warning regarding the immediate future of airline operations: "The airlines cannot continue operations beyond the next seven days without adjusting prices. They have been stretched to the limit." He underscored that while the aviation sector functions within a free market paradigm, it must not operate unchecked. "A free market is not a license to go haywire. Whether there is any form of collusion will become clearer in the coming days. We will inform the public of the outcome," Keyamo asserted.

Adding his perspective, Allen Onyema, Chairman of Air Peace, attributed the drastic surge in aviation fuel prices to global geopolitical tensions, particularly the conflict between the U.S. and Iran. However, he contended that the price increase witnessed in Nigeria is disproportionately high compared to global trends. "Globally, when crude oil prices rise, the cost of by-products such as aviation fuel increases proportionately. However, what we are seeing in Nigeria is abnormal," Onyema explained.

Onyema further highlighted the significant disparity, noting that while other nations have experienced increases of approximately 70 percent, Nigeria has endured a staggering spike ranging between 250 and 270 percent. This substantial discrepancy, he explained, was the primary catalyst for the government's intervention and the convening of the meeting. He delivered a severe caution, stating that if no immediate and effective measures are implemented, domestic airlines might be forced to cease operations.

"We have all presented our concerns and will await the outcome of further consultations. But let it be clear: if nothing is done within the next seven days, no domestic airline will be able to continue operations," Onyema emphasized. "It is not a matter of willingness to fly, but of survival. The cost of fuel and operations has become unsustainable, and airlines simply do not have the financial capacity to continue under these conditions."