Jun 23, 2026

Onyema: Nigerian Airlines Borrow Billions to Fuel Flights Amid Soaring Costs

By Afolabi Olaiya Idowu in business

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LAGOS, Nigeria — In a stark warning that underscores the deepening crisis in Nigeria’s aviation industry, Air Peace CEO Allen Onyema has revealed that domestic airlines are now borrowing billions of naira simply to purchase aviation fuel, as jet fuel prices have skyrocketed more than 250 percent in recent months.

Speaking in a Tuesday interview on Arise TV, Onyema painted a grim picture of an sector on the brink.

Jet A1 fuel, the lifeblood of commercial aviation, has surged from around N900 per litre to as high as N3,300 per litre, forcing carriers to make desperate financial maneuvers just to keep planes in the air.

“No Nigerian airline is smiling now,” Onyema said. “We’ve all borrowed and borrowed… billions just to buy fuel and fly.”

The fuel crisis is compounded by punishing borrowing costs, with Nigerian airlines facing interest rates of 29 to 33 percent — far higher than in many other markets.

This double burden of exorbitant input costs and expensive credit has airlines “dead on arrival,” according to the Air Peace chief, who noted that operators are increasingly forced to cut routes and operations to stay afloat.

Onyema was careful to praise local refining capacity, hailing the Dangote Refinery while directing sharp criticism at intermediaries in the supply chain.

“The problem is the supply chain and the multiple middlemen involved,” he explained. One buyer purchases from Dangote, sells to another, and by the time the fuel reaches the airlines, markups have driven the price dramatically higher.

This situation stands in contrast to global and regional trends. While international jet fuel prices have risen due to geopolitical tensions — notably conflicts affecting global oil markets — Onyema highlighted that Nigeria’s increase is disproportionately severe.

Other African countries have seen rises of around 70 percent, he noted, compared to Nigeria’s 250-270 percent spike.

The aviation sector’s struggles are not new but have intensified. Earlier in 2026, airlines threatened to suspend operations over fuel costs, prompting federal intervention, including a 30 percent reprieve on debts owed to aviation agencies.

While Onyema welcomed such measures as supportive — more so than any previous administration — he emphasized that deeper structural fixes are urgently needed.

Airline operators are seeking a direct meeting with President Bola Tinubu to address not only fuel but also multiple taxes, levies, and charges that further erode thin margins.

Ticket sales charges and other regulatory burdens add to the pressure, making it difficult to pass costs to passengers without pricing many Nigerians out of air travel.

For millions of Nigerians, affordable air travel is more than a convenience — it is a vital link for business, family, and national cohesion in a vast country with challenging road infrastructure.

Rising fares and reduced operations threaten jobs across the sector, from pilots and cabin crew to ground staff and maintenance teams.

Safety concerns also loom as airlines stretch resources amid fuel shortages and scheduling disruptions.

Onyema’s candid assessment comes as the industry navigates post-pandemic recovery, currency volatility, and global oil market fluctuations.

His call for urgent collaboration between government, regulators, marketers, and operators reflects a sector fighting for survival rather than growth.

Industry voices, including the Airline Operators of Nigeria (AON), have repeatedly urged swift action to streamline the fuel supply chain, reduce middlemen profiteering, and provide sustainable relief.

Potential solutions discussed in recent engagements include better regulation of Jet A1 distribution, targeted subsidies or waivers, and incentives to encourage direct sourcing from local refineries.

As Nigeria’s economy contends with inflation and foreign exchange pressures, the health of its aviation industry serves as a bellwether for broader competitiveness.

Onyema’s plea is clear: without decisive steps, more airlines could falter, diminishing connectivity and economic opportunity.

For now, passengers may face higher fares, delays, or fewer options. Behind the scenes, executives like Onyema continue borrowing against hope — keeping the nation’s skies open one expensive flight at a time.

The coming weeks will test whether government, industry, and fuel suppliers can align on solutions before the crisis grounds more than just aircraft.